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UFCW Local 7 In the News

FOR RECENTLY UPDATED PENSION INFORMATION, PLEASE CLICK THE NEW BUTTON LABELED PENSION TO THE LEFT SIDE OF THIS PAGE!

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November 14, 2008

Notice to All Local 7 Active Members Who Participate in the Pension Funds

Dear Member:

I am writing to update you on today’s trust fund meeting.

The Corporations agreed to not send the letter notifying us of “Red Zone” until sometime in April 2009. A specific and detailed letter will be arriving from the Trust Fund with further details. However, if you are going to retire to avoid being affected by the “Red Zone” certification, you will have until March 31, 2009 to have a termination date and application for benefits.

Thank you. If you have any questions or concerns, please do not hesitate to contact me.

Sincerely,

Ernest L. Duran, Jr.
President, UFCW Local 7
UFCW International Vice President
Attorney and Counselor at Law

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October 31, 2008

Dear Member:

Since my last letter, I have met with and spoken to hundreds of members. I am writing to show the questions most frequently asked, along with my answers. Hopefully, you will find this helpful.

QUESTION: Should I retire?

ANSWER: That is your decision. It is a very personal decision which only you can answer. My job is to explain the law to you with the risks/advantages.

QUESTION: I have the Golden Rule of 80 and can retire right now. If I have made the decision to retire, when can I safely retire?

ANSWER: The Pension Protection Act of 2006 (PPA) states the notification of “Red Zone” status can be sent out at “any time” but no later than April 30, 2009. I have asked the Corporations if they will agree the letter can be sent out on April 30, 2009. I have not received a response. Thus, the letter can go out anytime between January 1, 2009 and April 30, 2009. To “safely” retire, (i.e. risk-free) you should do so by December 31, 2008.

QUESTION: Can I have my last day of work on December 31, 2008, but still be employed while I am paid for my accrued vacation and not have any risks?

ANSWER: No. If you have not terminated from employment and the letter goes out, you can be adversely affected. The Clerk’s Pension Plan defines “Termination Date” as:

Termination Date. An Employee’s Termination Date shall be the later of the last date for which the Employee receives severance or sick pay from his Employer or receives accident and sickness benefits from a jointly-administered health benefit plan or the last day worked by an Employee for an Employer immediately preceding the Employee’s retirement, resignation or other voluntary or involuntary termination of Employment. The Termination Date of an Employee on leave of absence shall be the last day of such leave.

The Meat Pension Plan defines “Termination Date” as:

Termination Date. The later of the last day for which the Employee receives severance pay or the last day worked by an Employee for an Employer immediately preceding the Employee’s retirement, resignation or other voluntary or involuntary termination of Employment. The Termination Date of an Employee on leave of absence shall be the last day of such leave.

QUESTION: When does the default schedule take effect?

ANSWER: Enclosed is a timeline. I believe the Department of Labor will certify an impasse when the negotiations are concluded – probably on May 9, 2009.

QUESTION: If I am still working when the notice of “red zone” goes out, can I lose all of my pension?

ANSWER: No. The PPA provides the Plan must send Schedules of Benefit Reductions to the bargaining parties. The Default schedule may include the elimination of all adjustable benefits (Golden Rule of 80, early retirement, level income option, disability pension, Age 60 Supplement, etc). If this is not enough to fix the plan, future benefits can be reduced or eliminated. Your past service benefits will not be reduced. In the “Red Zone” the amount of the accrued benefit is not affected; only the ability to receive it unreduced or on a subsidized basis is affected.

QUESTION: If I do not have my Golden Rule of 80 now, what can I do?

ANSWER: I have the same pension plan as you. You are stuck with me. I do not qualify now for the Golden Rule of 80. A point I’d like to make is even if the Rule of 80 is taken away, we can still retire once we satisfy the Early Retirement provision, though with a reduced benefit. But we need to be determined to not settle the contract until we fix the pension. If we do, no one will lose anything. Get involved in negotiations!

QUESTION: What is causing the problem with the Pension Funds?

ANSWER: Obviously, the current economic crisis is having an adverse effect. This problem started, however, when the 2005 contract was accepted over the Bargaining Team’s recommendation. The persons hired after the contract was accepted have no pension benefits. The contributions on their behalf are only forty eight cents (48¢) per hour. The rates on those hired before are more than double. Thus, the revenue stream is decreasing. We must, as the Corporation offered earlier this year, increase the contributions of these workers.

QUESTION: If we lose the Golden Rule of 80, does that mean I cannot retire?

ANSWER: No. You can still retire at age 62, the normal retirement age, without any penalties. Further, even if the Rule of 80 is taken away, a member can still retire once he/she satisfies the Early Retirement provision, though with a reduced benefit. Of course if he/she stays to Normal Retirement date there is no reduction.

QUESTION: Why are King Soopers managers and HR saying you are lying just so you win the Amendment 47 campaign? They say the pension funds will not be in the “Red Zone” next year.

ANSWER: I do not know why they are saying this. The Pension Plans are projected to be in the “Red Zone” in 2009.

QUESTION: I called Zenith and talked to a claims representative. She said the Golden Rule of 80 is a vested benefit and cannot be taken away. Why are you saying something different?

ANSWER: This was true before the effective date of the PPA. The law has now changed. I have contacted Zenith. While senior management is aware of the “Red Zone” projection, the claims adjustors are not. The Trust Fund attorneys are working on a joint statement for the claims adjustors.

QUESTION: What do you recommend?
ANSWER: Do not make life changing decisions based on this issue. If you were going to retire, retire. If not, stay, unite with your fellow workers in negotiations. Let’s fix the pension plans for all. If we are successful, no one will lose anything. Hopefully, this addresses your questions. If not, please attend your Union meeting. A schedule is enclosed. Also feel free to call me.

Sincerely,

Ernest L. Duran, Jr.
President, UFCW Local 7

Colorado Premium Soccer Team

UFCW 7 IS PROUD

TO SPONSOR THE WORKERS OF

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UFCW Local 7

IS SUPPORTING THE SOCCER LEAGUE BY COVERING THE COST OF THE INSURANCE PREMIUM AS WELL AS NEW JERSEYS FOR THE 2008 TEAM

The UFCW Local 7 General Election Voter's Guide Is Available Online!

To pull up the voter's guide, simply click on the Vote! link on the left-hand side of this page and go to the link under the headline Vote UFCW.

Salazar Blasts Amendment 47 at UFCW rally; calls it a “distraction.”

WHEAT RIDGE -- U.S. Senator Ken Salazar and U.S. Representative Ed Perlmutter urged Coloradans to “Vote No On Amendment 47” at the campaign’s kickoff today at the United Food and Commercial Workers Local 7’s headquarters. Salazar was introduced by Ernest L. Duran, Jr., UFCW Local 7 President.

Salazar said he “sat next to the backers of 47 and asked them to get rid of 47 because it is bad for Colorado and they said no.” Salazar continued, “We need to band together to fight 47 and I’m going to be there every inch of the way. Amendment 47 is a distraction to the real issues affecting Colorado. It will weaken our economy if not defeated.”

Salazar concluded his remarks by reading a quote from the Denver Metro Chamber of Commerce that said “Colorado clearly has as strong or a stronger economy” than any of the Right to Work For Less states.

Salazar and Perlmutter joined business organizations from across Colorado to meet with proponents of the amendment and urge them to pull it from the November general election ballot.

“These people behind Amendment 47 don’t have the best interests of Colorado in mind,” Salazar said.

Perlmutter added: “Most big businesses and chambers are standing with working men and women of Colorado to defeat this miserable piece of junk.” Amendment 47 “would continue to divide the very top from the rest of us,” and said it was “designed to hurt working men and women,” he said.

Perlmutter concluded his remarks by saying “we can do better than this type of legislation and if we want to vote for real change, we need to vote no on 47.”

Saturday’s labor rally drew hundreds of working Coloradans, many from various labor organizations, who were eager to sign up to volunteer to defeat Amendment 47.

Kevin Hilton, Political Director of the Carpenter’s Union and also a pastor, was the final speaker at the Rally.

Hilton said, “We are the working people and we forge the way. It is up to us to talk about what is best for working people because that message always wins.” Hilton said “Amendment 47 speaks against democracy and against democracy in the workplace."

Union: Swift reneged on a Ramadan deal

Source: The Rocky Mountain News

By Joanne Kelley, Rocky Mountain News (Contact), Lisa Ryckman, Rocky Mountain News Contact)

Published September 12, 2008 at 12:05 a.m.

This is company's second clash over Muslim holiday

The union representing JBS Swift workers here said many of those involved in a prayer-break dispute had no advance warning they would be fired if they failed to return to work this week.

In addition to filing grievances for each of the employees who wants his or her job back, the United Food and Commercial Workers also will challenge the slaughterhouse giant for allegedly leaving the union out of initial negotiations over Ramadan-related rituals.

"The company went around the union a week ago and cut a side deal with some workers and then reneged," said Manny Gonzales, a spokesman for UFCW Local 7. "That was the cause of this whole mess."

The controversy marks the second year in a row the meatpacking company has clashed with employees over the timing of Ramadan related rituals. A similar dispute erupted in 2007 at Swift's plant in Grand Island, Neb.

Some cite earlier tensions

At the plant here, Muslim workers wanted to break their Ramadan fast at 7:30 p.m., which required moving their "lunch" break.

Swift officials offered to move the mid-shift respite to 8 p.m. from 9 p.m. But the compromise failed to satisfy many of the affected workers because their holy month obligations require them to break the Ramadan fast at sunset, which varies daily and falls earlier in the evening.

The company terminated more than 100 workers after they had failed to report to the Greeley meatpacking facility for its second shift Tuesday night. Even more workers had walked off the job last Friday, prompting the company to suspend them initially for violating their collective bargaining agreement.

On Thursday, fired Somali workers met at the Greeley Islamic Center for afternoon prayers and to talk about their next step. They said no action would be taken until today at the earliest, out of respect for the Sept. 11 anniversary.

Some of the workers said tensions between the Somalis and their Hispanic supervisors had been simmering for months.

"When they were firing me, one of the guys said, 'Screw you and your religion and your people.' And he was one of the head guys over there," said Ahmed Hirmoge, 20, who came to the U.S. in 1995.

He speaks English fluently and worries about what will happen to Somalis who have been here a short time and speak English too poorly to find work elsewhere.

"They came here for peace and freedom, and this is their first and last job," he said. "These people, how are they going to survive?"

After prayers, Hirmoge and his cousin stood in a parking lot behind the Islamic Center and talked about moving to Canada, where they hoped they would find a job that would accommodate their religious customs.

"They say these people are more faithful to their religion than the company," Hirmoge said. "My response: Swift ain't going to take me to heaven, right? So I'm going to choose God any day."

Company defends decision

Swift spokeswoman Tamara Smid said the company can't stagger breaks because all 1,500 workers per shift take their breaks at the same time as the assembly line shuts down. Smid also said it was up to the union to inform workers who walked off that if they didn't return to work, they would be fired.

The UFCW's Gonzales said word didn't spread fast enough to all the workers that they needed to resume working or be fired.

Immigrant-rights groups and advocates for Muslims have begun to intervene on behalf of the workers, either to help them find new employment or in hopes of resolving the break issue.

"We have a lot of experience dealing with this kind of situation," said Ibrahim Hooper of the Council on American-Islamic Relations. "In just about every case, we've been able to come up with a reasonable solution."

Hooper said the sunset prayer break is "almost always the sticking point" because there is little flexibility in when it must take place.

The dispute coincides with the announcement of a landmark settlement in Minnesota that gives Somali workers brief prayer breaks at the Gold'n Plump poultry plant following a year-long investigation by the Equal Employment Opportunity Commission.

The federally mediated agreement is reportedly one of the first in the country that requires employers to accommodate the Islamic prayer schedule.

Ramadan

* The holiday is one of the most important on the Muslim calendar.

* Fasting is one of the five pillars of Islam.

* During the month of Ramadan, which is based on the Muslim lunar calendar, Muslims are required to fast from sunrise until sunset. The fast is a method of purification, according to the Council on American-Islamic Relations.

At issue

* Muslims working the second shift at Greeley's JBS Swift meatpacking plant have clashed with their employer over when they can take breaks to accommodate their prayer obligations during Ramadan.

* The holy month requires Muslims to break their daily fast and pray at sunset, which varies daily and typically falls well before the usual mid-shift break at 9 p.m.

* Workers protested after the company offered to move the "lunch respite" forward by an hour because sunset typically falls earlier in the evening and varies from day to day. About 220 workers walked off.

* Swift said it can't stagger breaks because all 1,500 workers per shift take their breaks at the same time as the assembly line shuts down.

* A majority returned to work Tuesday night at the company's request but 100 workers were fired for failing to report for their shift.

UFCW Local 7 qualifies two ballot measures

UFCW interns and staff members held a brief news conference at the Secretary of State's offices in downtown Denver Monday, August 4th to announce that the Employer Health Insurance initiative (Amendment 92) and Safe Workplace initiative (Amendment 93) had gathered far in excess of the 76,000 signatures necessary to place them on the November General Election Ballot. A total of over 170,000 signatures were turned in to qualify the Employer Health Insurance measure and 150,000 were submitted backing the Safe Workplace initiative.

Above, Stacey Lestina and another intern spoke about the health insurance initiative.