Important Information for UFCW 8–Golden State Members working at Rite Aid in Northern and Southern California
We know these store closures have been hard, both professionally and personally. The uncertainty has affected many, and we want to assure you — your Union is doing everything possible to protect your rights, preserve your benefits, and ensure fairness during this difficult time.
During a bankruptcy, ultimately, the judge decides which creditors should be paid first. Sadly, workers are often not as high a priority to the courts as we believe they should be. We’ve heard the recent auction of the stores was also not very successful, and as a result, there was significant concern about the company having sufficient funds to pay all debts they owed at the end of the bankruptcy if an agreement was not worked out.
All UFCW locals across the country with Rite Aid locations participated in discussions and have reached a tentative agreement, pending court approval, with the company covering several closing issues, and Rite Aid will request approval of the agreement by the bankruptcy court. Below are a few highlights of the agreement, which must still be approved by the bankruptcy courts:
- Members will continue to be covered under their existing benefits through the last day of the month which they are employed.
- Members who continue working and do not resign are eligible for severance, and will receive 70% of the severance outlined in the collective bargaining agreement, and will need to sign a release to receive severance.
- Members in Southern California will receive 50% of their accrued unused sick pay if they work until the last day and sign a release.
- The Employer will pay accrued and unused Personal Time Off (PTO), vacation, and holidays to all separated Associates as required by their respective contracts or state law.
The company will also make every effort to respect weekly hour guarantees and seniority rights; however, with many stores closing quickly and at the same time within a geographic area, members won’t have sufficient time to exercise bumping rights to move to neighboring locations, which are often closing within days of each other.
The company will also create a “standby pool” for members who want to remain on standby to pick up any remaining hours at nearby stores.
It remains each member’s individual choice—whether to stay, join the extra-hours/standby pool, move to another employer, or retire. Please note: severance is only paid if you remain employed until your store officially closes; leaving sooner could forfeit that payment.
A key court hearing is also scheduled on June 6, which includes approval of financing for the company to continue operations during the wind-down period. We will follow up with additional information as soon as this agreement is approved by the courts.
We will continue working with the UFCW International Union, our legal counsel, and bankruptcy experts to protect member rights, monitor court proceedings, and assist members through this difficult time. Stay informed by signing up for text alerts and visiting www.ufcw8.org for updates.
