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November 27, 2007 Rite Aid-Eckerd Drugstore Workers Are A Step Closer to Becoming 1199SEIU Members There's some good news for workers who recently became Rite Aid employees when the company acquired the Eckerd and Brooks drugstore chains. They're now a step closer to becoming 1199SEIU members, according to an interim decision issued by an arbitrator. Rite Aid has been refusing to recognize and abide by a contract provision that requires the company to recognize 1199SEIU as the bargaining agent for acquired stores within the contract’s geographic area, when a majority of union cards are signed in a store. To that end, they instructed Eckerd store managers to deny union organizers access to stores, confiscate union literature and to take other action intended to intimate workers. But last week, an arbitrator said that the "after acquired" language is valid. He also said that the union cards signed by Eckerd workers in stores where the majority of workers want to be 1199SEIU members (and have already been given to the arbitrator) can be counted. The arbitrator also granted the union the right to include staff and supervising pharmacists in the card count. While there is still some distance to go before everything is settled, this is a positive step in the direction toward union membership. Every day, more and more Eckerd workers are signing union cards because they understand that collective bargaining results in better salaries and benefits, fairness in the workplace and job security. Meanwhile, Rite Aid’s management has publicly stated that they seek to "operate in a union-free environment." They are also in labor disputes with the International Longshore and Warehouse Union on the west coast, and the United Food and Commercial Workers on the east coast. ---- November 19, 2007 Rite Aid Ignores Workers On Both Coasts: Earnings Sag Rite Aid's workers are concerned that the company has bitten off more than it can chew by balancing its finance problems on the backs of employees and communities. Rite Aid earnings are sagging and the integration is not going smoothly despite CEO Mary Sammons claim that the company would become "bigger, better and bolder" by taking over more than 1,850 Brooks and Eckerd stores. VIDEO: 1199SEIU officers share support for the distribution center workers 1199SEIU Rite Aid members and union officers on the east coast are working in solidarity with Rite Aid workers in Lancaster, California who are seeking to join the International Longshore and Warehouse Union (ILWU). These workers want to change conditions at the Rite Aid distribution warehouse. They are concerned about several issues, many of which will sound familiar to health care workers:
Rite Aid has responded to the workers' organizing efforts with a nasty, aggressive anti-union campaign. Its tactics led to a 10-month investigation by the National Labor Relations Board (NLRB). The NLRB found enough evidence to try Rite Aid on 49 violations of federal labor law that include firing, suspending, disciplining and disparaging union supporters; spying on union activists, interrogating workers and threatening to withhold regular wage increases to workers who support the union. Rite Aid chose to settle instead of facing an NLRB judge. Under the settlement, the government has required Rite Aid to do the same things it would have had to do if the judge found the company guilty, including rehiring workers with back pay and stopping their anti-union actions. Last week, officers and members of 1199SEIU, ILWU and United Food and Commercial Workers joined together in an effort to educate 5,000 participants at the International Foundation Employee Benefits conference about Rite Aid’s bad business practices and unacceptable treatment of workers. ---- For immediate release Contact: MEDIA RELEASE Labor Union Coalition Alerts Industry Analysts About Rite Aid “You have legitimate concerns about the further underperformance and deterioration of shareholder value.” VIDEO: Unions Question Rite Aid at Benefits Conference While Rite Aid Health Solutions, the company’s pharmacy benefit management unit, is looking to organized labor to expand business and help the company compete in the burgeoning mail order pharmaceutical sector, labor unions have big concerns. They expressed those concerns in the following letter that was sent to industry analysts across the USA and in Canada. Here is the letter: November 5. 2007 RE: Rite Aid Update To All Interested Parties: In recent months, followers of Rite Aid’s stock have watched its price reach lows for the year. While many analysts had anticipated the difficulties of the Eckerd/Brooks integration, most did not expect Rite Aid management would choose to exacerbate integration problems by escalating a fight with its unionized workforce. At present, approximately 25,000 Rite Aid pharmacists, technicians, front-end, and warehouse workers have union representation. These unions — the Service Employees International Union (SEIU), the United Food and Commercial Workers (UFCW), the International Brotherhood of Teamsters — collectively represent over 5 million U.S. workers. Rite Aid Health Solutions, the company’s pharmacy benefit management unit, is looking to organized labor to expand business and help the company compete in the burgeoning mail order pharmaceutical sector. This week, thousands of Taft-Hartley and union health and pension fund trustees and administrators are in Anaheim, California, for the annual International Foundation of Employee Benefit Plans conference. This conference is considered a premier marketing opportunity for health and investment management vendors, and Rite Aid Health Solutions will be there along with Caremark, Medco and other PBMs competing for billions of dollars in union business. Among conference participants, Rite Aid is sure to tout itself as a union-friendly company. However, our unions will be there in force to set the record straight on the company’s recent assaults on workers’ rights. For months, Rite Aid has failed to comply with legally-binding contractual language governing the rights of workers in newly acquired stores and has waged a union-avoidance campaign in California among warehouse workers seeking representation through the International Longshore and Warehouse Union (ILWU). To get the word out about Rite Aid’s recent anti-union actions, SEIU, UFCW and ILWU welcomed hundreds of trustees at a reception on the conference’s opening night. Throughout the week, we are distributing information and encouraging union trustees and administrators to question Rite Aid’s actions and encourage them to not do business with the company until it starts doing right by its workers. Today, Rite Aid is at a critical juncture. The company’s future is riding on the success of the acquisition, the growth of its PBM business, emergence from the scandals that plagued the company in the past, and improving same store sales during the upcoming holiday season. Rite Aid is already on thin ice; it can ill-afford to put it all at risk by antagonizing its workforce. We are fully committed to upholding the legally-binding contractual rights of Rite Aid and Eckerd Brooks workers and will not stop until we are satisfied that Rite Aid is on the right track for its workers, and in turn, its customers. Needless to say, if Rite Aid continues on its current course, investors may have legitimate concerns about further underperformance and deterioration of shareholder value. If you have further questions on this matter or would like additional information, please feel free to contact Yvonne Armstrong, 1199SEIU Executive Vice President, 212-261-2311. Sincerely, Yvonne Armstrong cc: Industry analysts; industry press -------------------- The conference will continue from Sunday through November 7 at the Anaheim Convention Center Yvonne Armstrong of 1199SEIU said, “We’re asking all conference attendees to stop by Rite Aid’s booth and tell them to think twice about trusting them with their business until they do the right thing.” www.riteaidinsider.com discusses issues of concern to investors, consumers, and seniors. ---- November 5, 2007 Thousands Of Benefit Fund Trustees Question Viability of Rite Aid Pharmacy Benefit Management Company Thousands of attendees of the International Foundation Employee Benefits conference in Anaheim, CA, this week are carrying bags that read: “ Trust Rite Aid? Think Twice!” The attendees are involved in administering union health care and pension trusts. Their message is to Rite Aid, the nation’s third-largest drug chain, which wants to boost its fledgling two-year old pharmacy benefits management company on the backs of workers. Problems plague the company: plummeting stock, a consumer fraud suit and escalating labor disputes. Rite Aid is unsuccessfully trying to integrate 1,854 recently acquired Brooks and Eckerd stores. The compony remains under the watchful eye of federal billing fraud monitors. In the last 10 years, Rite Aid settled more than a half-dozen lawsuits alleging consumer fraud. The charges included selling expired goods, charging higher than the advertised prices at the checkout line and overcharging the elderly and uninsured. 1199SEIU, the International Longshore and Warehouse Union(ILWU), and the United Food and Commercial Workers (UFCW) are working together and sponsored a packed reception at the benefit fund conference. “We’re here with SEIU and the ILWU and we represent a lot of members between our unions,” said Wendell Young of UFCW. “Rite Aid used to be the kind of company you could work with, but when they changed management, their executive suite took an anti-union turn. This company has become a real problem.” Young said that Rite Aid is violating its contractual obligations, federal labor law and running aggressive anti-union campaigns on both coasts. “At a time when industry analysts and stockholders are watching Rite Aid closely to see whether it will be able to successfully pull off the integration of the Eckerd/Brooks chain,” says 1199SEIU Executive Vice President Yvonne Armstrong, “Rite Aid made a choice to fight with workers. They’re using the Eckerd/Brooks acquisition to create a second-tier, non-union workforce that will replace union workers, which will cost jobs and depress wages in communities. We’re asking all conference attendees to stop by Rite Aid’s booth and tell them to think twice about trusting them with their business until they do the right thing.” The conference runs from Sunday November 4 through Wednesday, November 7 at the Anaheim Convention Center. ----
For immediate release Contact: MEDIA ADVISORY Rite Aid’s Fledgling Benefits Management Firm Hits Turbulence At Employee Benefits Conference In Anaheim Company seeks business from union benefit funds. Union coalition says Rite Aid wants union money, but won’t respect workers’ rights. They are telling conference attendees: Trust Rite Aid? Think Twice! As it attempts to boost its two-year old pharmacy benefits management company (Rite Aid Solutions) at the International Foundation Employee Benefits conference in Anaheim, CA, problems continue to plague Rite Aid. The nation’s third-largest drug chain is struggling with the integration of 1,854 newly acquired Brooks and Eckerd stores, a plummeting stock, a consumer fraud suit in New Jersey, and escalating labor disputes on both coasts. In addition, Rite Aid remains under the watchful eye of federal billing fraud monitors through May 2008. The International Foundation expects to draw some 5,000 participants to its 53rd Annual Employee Benefits conference, held Nov. 3-7 at the Anaheim Convention Center. Most attendees are involved in administering union health care and pension trusts. At the opening of the International Foundation Employee Benefits conference, a bicoastal labor coalition is inviting attendees to a reception to learn more about Rite Aid, it’s pharmacy benefits management service (PBM) and its aggressive anti-union actions. Food and beverages will be served. All media is welcome and encouraged to attend. Photo ops available. Sunday, Nov. 4, 2007 6 p.m.-10p.m. The labor coalition sponsoring the reception brings together 1199SEIU (Service Employees International Union), the nation’s largest health care union; ILWU, the International Longshore and Warehouse Union, and UFCW, (United Food and Commercial Workers). A new website devoted to Rite Aid news will also hit cyberspace just in time for the conference. The ILWU sponsored site, www.riteaidinsider.com, tracks issues of concern to investors, consumers, and seniors. 1199SEIU also has a website for drugstore employees at www.riteaidworkerstogether.org. ---- September 16, 2007 1199SEIU Rite Aid Pharmacy Techs Win Back Pay Kiesha Gordon, a Rite Aid pharmacy tech in Jamaica, Queens wasn’t sure why she didn’t get the raise that was coming to her. “I thought maybe there was something in our Union contract that I didn’t understand,” she said. ---- August 30, 2007 1199SEIU Runs Rite Aid Radio Campaign in Harrisburg, PA ---- August 21, 2007 1199SEIU Union Activists Demonstrate at Rite Aid Convention in Baltimore More than 100 1199SEIU Union activists greeted attendees at Rite Aid's annual management seminar and trade show at the Baltimore Convention Center on August 21, demanding that workers in their newly acquired pharmacies in metropolitan New York and northern New Jersey have the same union rights as other Rite Aid employees in the area. Rite Aid is in the process of acquiring Eckerd and Brooks drug stores and awaits final approval from the Federal Trade Commission (FTC). But Rite Aid has already begun an integration that includes slashing Eckerd and Brooks workers' paid sick and vacation days and denying workers their legally protected right to join a union. "1199SEIU had a powerful presence at the Rite Aid conference in Baltimore today," said 1199SEIU Vice President Laurie Vallone. "If you were attending the conference, you couldn't miss us! And get used to seeing 1199SEIU because we won't stop until Eckerd and Brooks workers have the same rights and benefits as Rite Aid employees." This is the second time in a week that 1199SEIU has joined Rite Aid at an industry event. On August 14, almost 100 Union activists brought their message of fairness to the Boston Convention Center, where the National Association of Chain Drug Stores was holding their annual Pharmacy Conference. "We believe all Rite Aid workers should be treated equally," explained Vallone. "However, Rite Aid isn't providing their newest workers with the same pay, benefits and rights as the established workers who have union representation. When Mary Sammons tells conference attendees that Rite Aid is now Bigger, Better and Bolder, you've got to ask for whom. She may have gotten a million dollar bonus, but most Eckerd workers do not earn enough to afford the health benefits that Rite Aid has for them. Does the company aim to be the Wal-Mart of the drug store industry? We won't stand by and let that happen." The 1199SEIU contract with Rite Aid includes language that requires Rite Aid to recognize 1199SEIU as the collective bargaining agent for, and apply the terms of the contract to, any acquired stores within the contract's geographic area when 1199SEIU demonstrates majority support. Rite Aid is in clear violation of its contractual obligations and federal labor law as it has told 1199SEIU that it will not honor that contract language and instructed Eckerd store managers to deny 1199SEIU organizers access to stores, confiscate union literature, interrogate workers and take other action intended to intimate workers. 1199SEIU represents more than 5,000 Rite Aid workers: pharmacists, technicians, cashiers, and others at over 400 stores in Metropolitan New York and northern New Jersey. Eckerd/Brooks workers have no union representation. ---- August 14, 2007 Unions Unite to Oppose Rite Aid's Treatment of Newest Workers Demonstrate against Rite Aid and Eckerd/Brooks merger at Chain Drug Store Industry Conference Boston, MA - Nearly 100 union officials and activists from 1199SEIU and the United Food and Commercial Workers (UFCW) demonstrated their opposition to Rite Aid's pending acquisition of the Eckerd and Brooks drug stores in front of the Boston Convention Center, where the National Association of Chain Drug stores is holding their annual Pharmacy Conference. While Rite Aid has not received final approval from the Federal Trade Commission (FTC) for a deal to acquire the stores from the Jean Coutu Group USA, the company has already begun an integration that includes slashing Eckerd workers' paid sick and vacation days and denying workers their legally protected right to join a union. At a time when industry analysts and institutional stock holders are watching Rite Aid closely to see whether it will be able to successfully pull off the integration of the Eckerd/Brooks chain, "Rite Aid has picked a fight that they can't win and is jeopardizing the integration of their operations,” explained 1199SEIU Vice President Laurie Vallone. “Together with 1.3 million members of the UFCW, which also represents Rite Aid workers, SEIU Healthcare's one million pharmacy and healthcare workers are ready to make our case and demand corporate accountability. We won't sit by and allow Rite Aid to create a second-class workforce without healthcare benefits and lower pay." The demonstration, where participants held a banner reading "We Demand Equal Treatment for Rite Aid Workers," capped 4 days of outreach activities at the conference. Union members distributed informational leaflets to conference attendees, and engaged industry press, analysts and insiders in lengthy discussions on the issues at stake in the acquisition. 1199 SEIU represents 3,000 Rite Aid workers: pharmacists, technicians, cashiers, and others at over 300 stores in Metropolitan New York and northern New Jersey. Eckerd/Brooks workers have no union representation. The 1199SEIU contract with Rite Aid includes language that requires Rite Aid to recognize 1199SEIU as the bargaining agent for any acquired stores within the contract’s geographic area. The UFCW represent 18,000 Rite Aid workers in other regions of the U.S. Rite Aid is in clear violation of its contractual obligations and has instructed Eckerd store managers to deny 1199SEIU organizers access to stores, confiscate union literature, interrogate workers, and to take other actions intended to intimidate workers. Members of Congress have contacted the FTC to register their concerns and have requested that final approval for the acquisition be postponed until Rite Aid fulfills its collective bargaining obligations with 1199SEIU. Representatives of Rite Aid are in Boston to attend The National Association of Chain Drug Stores (NACDS) August 2007 Pharmacy & Technology conference from August 11 -15. More than 150 retail companies comprised of chain drug stores, supermarkets, and mass merchants — including Rite Aid and its competitors — are attending the conference.
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