The Baltimore-Washington market’s largest retailer, Giant Food, will continue to have most of its products distributed from warehouses based in Jessup, MD.
Late last month, the retailer agreed to new four year contracts with Teamsters Local 730 (warehouse employees) and Teamsters Local 639 (truck drivers) for Giant’s “fresh” warehouse. And, Local 730 inked a new deal with Jessup Logistics (a unit of C&S Wholesale Grocers) that will keep most of the dry grocery distribution based in Jessup at a facility that Giant agreed to let C&S operate earlier this year.
Local 730, which represents approximately 400 workers at the dry grocery warehouse in Jessup, accepted a 50 percent reduction in staff, with the assurance that affected employees would be offered jobs in other parts of the company or buyouts. The vote was 241 to 19. They also accepted a pay cut for most of the associates from $23.50 to $20.50 an hour. Workers will also now pay 25 percent of their health insurance; previously they contributed nothing to cover health care.
Giant has also reduced its rent to Jessup Logistics to reportedly less than 50 percent of the market cost. It is estimated that the overall deal will save Giant $3-$5 million, depending on buyouts and voluntary retirements
“We did the best we could in trying to preserve jobs for the dry grocery associates based in Jessup, “said Ritchie Brooks, president of Local 730. Of the 200 who will not be part of the new agreement, Brooks told us, “They will be offered buyouts, severances, an opportunity to move to the fresh warehouse, and training to become truck drivers. They will have options.”
Giant acknowledged that it will offer displaced workers driver training, with preferential hiring rights and bonuses to employees in the fresh warehouse who retire, in order to free up positions. The company agreed not to outsources the plant for three years, putting to rest one of the union’s biggest concerns.
The final agreement at the dry grocery facility calls for 58 percent of all grocery inventory (about 100 stores) to remain based in Jessup, while C&S will warehouse dry groceries for the remaining 80 units from its large ES3 depot in York, PA. The shift to C&S’ York facility and the layoffs of existing personnel will be completed by July 24.
Additionally, associates will receive a lump sum $2,000 bonus immediately and wage increases of $0.45 per hour in each of the following three years of the fresh contract. Giant will also continue to provide healthcare coverage at no cost to current fresh warehouse associates. Associates will continue to receive a free pension benefit to help provide them with a secure retirement.