Teamsters Reject Capitol Beverage Contract
Posted on: Tuesday, 6 May 2008, 00:00 CDT
By Paul J. Nyden
pjnyden@wvgazette.com
Teamster union members working for Capitol Beverage rejected the company's final contract offer by a 32-3 vote on Thursday.
On Saturday, union members began to distribute leaflets at grocery stores in Charleston and Parkersburg stating they "are trying to negotiate a fair contract with the company. However, the company is not serious about trying to negotiate a fair contract for its hardworking employees."
The dispute could possibly lead to a strike against Capitol, a company founded in 1935 that now delivers Miller, Coors and a variety of imported beers - including Corona and Guinness - to state retailers.
Capitol Beverage did not respond to telephone messages left at its Sissonville offices on Saturday.
The vote against the Capitol Beverage contract came five days after Teamster members at Coca-Cola Bottling Consolidated's warehouse in St. Albans voted 82-1 to ratify a new contract with that company.
Ken Hall, president of Local 175 in South Charleston, said, "Coca- Cola was willing to pay their employees the industry standard for the beverage market and provide them with decent benefits.
"The majority of Capitol Beverage employees are hourly and their average proposed wage increase would go up to $10 an hour," Hall added. "Their competitors pay about 35 percent to 40 percent more, and they provide their employees with good insurance and fringe benefits."
The new contract proposed by Capitol would increase deductibles on health-insurance policies to $1,000 for each person.
That means annual "health-care deductibles" for a family of four could increase from a maximum of $750 a year to $4,000 a year.
In addition, "out-of-pocket" medical co-payments would not be cut off until the family spent $9,000 for medical care.
"That means a family of a warehouse worker making between $20,000 and $25,000 a year," Hall said, "could possibly have to pay between $10,000 to $13,000 a year in medical payments. That is not a survivable situation."
Local Pepsi, Coke and Budweiser distributors pay 35 percent to 40 percent more than Capitol Beverage for their workers' health benefits, in addition to higher wages, Hall said.
"Capitol has expanded, and continues to expand, its business by purchasing other distributorships," Hall said. "They need to take care of their own employees first."
Health insurance for retired workers would also be eliminated under the contract that was rejected by the union.
Teamsters Local 175 also has filed unfair-labor-practice charges with the National Labor Relations Board alleging Capitol engaged in "bad faith bargaining."
"Unfortunately, the company's refusal to agree to a reasonable contract will leave their workers with no alternative but to take strike action," Hall said on Saturday.
Local 175 currently represents 400 people working for companies in the state's beverage industry, including Coca-Cola, Pepsi, Central Distributing and Capitol Beverage.
To contact staff writer Paul J. Nyden, use e-mail or call 348- 5164.
(c) 2008 Sunday Gazette - Mail; Charleston, W.V.. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Sunday Gazette - Mail; Charleston, W.V.
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