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Business

Trader Joe’s workers in Massachusetts vote to join union at one store




Comment

Trader Joe’s workers at a store in Hadley, Mass., voted 45-31 to unionize, becoming the first at the company to do so, according to the National Labor Relations Board.

The union’s win in western Massachusetts follows a wave of successful unions this year at high-profile employers that have long avoided unionization, such as Starbucks, Amazon, Apple and REI. Union victories can have a ripple effect across employers and industries, encouraging new workers to organize. Petitions for union elections this year are on track to hit their highest level in a decade, as a hot labor market has given workers more leverage over their employers.

Trader Joe’s workers at the Hadley store cited the erosion of their benefits, health and safety concerns related to the pandemic, and wages as the impetus for forming an independent union at their store. Some workers in the store make $16 an hour. The minimum wage in Massachusetts is $14.25 an hour.

“There’s been a very clear trend over the last 10 years where Trader Joe’s has cut our benefits,” said Maeg Yosef, the head of the union who has worked at the Hadley store for 18 years. “We all see that and it’s really obvious to us that the way to protect each other is through a union contract.”

A Trader Joe’s spokesperson disputed the workers’ claims, adding that the company’s wages, benefits and working conditions remain top notch.

“Trader Joe’s offers its crew members a package of wages, benefits and working conditions that are among the best in the grocery industry. Despite this, employees at our Hadley, Massachusetts store recently voted to be represented by a union,” said Nakia Rhode, a spokeswoman for Trader Joe’s. “We are prepared to immediately begin discussions with union representatives for the employees of this store to negotiate a contract.”

While Starbucks and Amazon have so far refused to negotiate union contracts with their employees who recently voted to unionize, Rhode states that Trader Joe’s is willing to use any applicable union contract for a multi-state grocer in the region as a model for a contract , including wages, retirement, health care and working conditions, for workers at the Hadley store.

Since workers in Hadley announced their union campaign in May, Trader Joe’s workers in Minneapolis and Boulder, Colo., have filed for union elections. The Minneapolis store will hold its selection the second week of August. There are more than 530 Trader Joe’s locations in the country.

Workers at the Hadley store as well as in Minneapolis are joining with Trader Joe’s United, an independent union that recently formed, mirroring new worker-led union movements at Starbucks and Amazon.

Trader Joe’s, a national chain that employs 50,000 workers in 42 states, has built a devoted base of customers since its founding in 1967 with reasonable prices, local style and a reputation for offering strong wages and benefits to its “crew members”—like don Hawaiian shirts. But unionized Hadley employees say that in recent years the company has steadily stripped away many of the benefits that made Trader Joe’s an attractive place to work.

Trader Joe’s offered a robust retirement plan for many years, contributing 15 percent of an employee’s earnings for employees age 30 or older. But in the early 2010s the company lowered the contribution to 10 per cent, and last year it lowered the percentage again to 5 per cent for many employees. The company has since announced that it will no longer specify a defined contribution.

Trader Joe’s previously said the change was partly in response to feedback from workers that they wanted a bonus instead of a pension.

Health benefits for part-time employees have also taken a beating. The company used to offer such benefits to part-time workers, but increased the required weekly hours to qualify for the benefit from about 20 to 30 hours a week with the transition to Obamacare.

A Trader Joe’s spokesperson told the Huffington Post at the time, “We have made some changes to our health coverage that we believe will benefit all crew members who work in our stores.”

“I think the company has made changes over the years that have made Trader Joe’s less of a great place to work. Public perception hasn’t caught up with that reality,” said Yosef, 41. “I also feel that unions are good for all workers. You don’t have to have the worst working conditions to benefit from having a union. Ultimately, if we can’t take care of ourselves, the company will lose the magic that made it so special.”

During parts of the pandemic, Trader Joe’s took extra steps to protect its workforce. It required customers to wear masks, enforced capacity limits in stores, allowed workers to take longer leaves with health care and in some cases raised wages by up to $4 an hour.

But Hadley workers say the company rolled back many of those protections prematurely, especially “thank you” pay, which ended in May 2021. A coronavirus outbreak swept through the Hadley store, and 22 workers called in sick in May of this year, according to covid-19 alerts received by workers, but Trader Joe’s had already dropped the mask mandate, in compliance with local mandates.

“I think workers in the shop have realized that they will get better working conditions if they have a say. I honestly think a lot of it has to do with covid, said Jamie Edwards, a 33-year-old crew member who voted for the union. “They are aware that they can make the workplace better.”

Labor revolt comes to a Dollar General in Connecticut

Trader Joe’s has aggressively opposed unionization efforts among its workforce for years, pulling union-friendly workers aside to hold anti-union talks and sending out a memo to managers to use with workers during the pandemic that compared the risks of joining a union to more “buy a house” than “toothpaste you don’t end up liking.”

Trader Joe’s executives have pulled workers aside for a series of mandatory meetings at the Hadley store in recent days to discourage them from voting for the union. Two workers present at the meetings said regional managers told them to “vote no” in the union election, citing the strain that unionization had taken on the store’s management.

“We’ve always said we welcome a fair vote,” Nakia Rohde, a spokeswoman for Trader Joe’s, told the New York Times in May after workers began their campaign in Hadley. “We are not interested in delaying the process in any way.”

Edwards, who has worked at the Hadley store for eight years, said a manager sent him home in late May for wearing a union pin to work. Edwards led a rally for the union on the sidewalk outside Trader Joe’s in Hadley on Saturday that more than 100 community members turned out to support. After the meeting, the union organized for customers to deliver flowers to workers inside the store, but security threatened to call the police if they followed through, Edwards said.

Less than a week before workers began voting in Hadley, Trader Joe’s announced in an internal memo that it was increasing benefits nationwide. The company said it increased Sunday and holiday pay by $10 an hour, as well as the accrual of paid time off. It said it would issue raises to employees with multiple tenures at the company to increase pay equity across the company. Extending benefits to workers ahead of a union election is a tactic often used by employers to discourage workers from voting to join unions.

Workers at the Hadley store say they expect other Trader Joe’s employees to be encouraged by the win.

“I think our victory can be repeated,” Yosef said. “Even though we live in different areas of the country, the crew’s experience is universal. We’re all dealing with the same issues: pay, benefits, safety. I think we all have a lot in common.”



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