- js reader version
- view hidden posts
- tags and related articles
by Rand Wilson
Thursday, Dec. 04, 2008 at 2:36 PM
On December 2, a representative from Lancaster, CA met with Rite Aid CEO Mary
Sammons at a special shareholder meeting in New York City.
img_3774.jpg, image/jpeg, 2048x1536
Over 600 workers employed at Rite Aid's giant distribution center in Lancaster, California, sent their representative to attend the company's emergency shareholder meeting in New York City on Tuesday, December 2.
With the company's stock price hovering at less than 50 cents, and problems plaguing Rite Aid's supply chain serving hundreds of stores in the southwest, workers expressed "serious concerns about the focus and execution of Rite Aid's top management team."
Rite Aid management is blaming its troubles on the economy, but employees offered a different perspective.
"When you work inside a critical point in the supply chain, you can tell if management is really focused on running things efficiently and motivating everyone to work together as a team. Right now, that's not happening at Rite Aid from what we can see." said Carlos "Chico" Rubio who works at Rite Aid's modern million-square-foot distribution center in Lancaster where container-loads of products arrive each day from the Port of Los Angeles and are quickly distributed with just-in-time precision to more than 500 Rite Aid retail stores throughout the southwest.
"The good news is that we've got talented employees who want to be part of a successful solution. But we're missing that opportunity now because management can't seem to focus on solving problems and working together with us as a team," explained Mr. Rubio, who offered three suggestions at the shareholder meeting:
Rubio invited CEO Mary Sammons to visit the Rite Aid's distribution center in Lancaster to meet with employees, explain the company's goals, and encourage problem-solving.
Rite Aid executives should consider limiting their compensation to reasonable multiples of what workers earn, and keep executive pay more in line with performance.
Rite Aid management should abandon its anti-union "we know what's best for you" philosophy, and focus instead on building cooperative relations with its employees' unions.
Morale among Rite Aid workers nationwide has suffered because top management has been taking huge compensation packages despite a 95 percent decline in share value since June 2007. Top executives took over .2 million in total compensation in FY 2008, including more than .5 million in cash bonuses related to the acquisition of the Brooks and Eckerd drug store chains, a decision some analysts consider to have been a costly mistake.
At Rite Aid's distribution center in Lancaster, workers have struggled with other examples of bad management that surfaced soon after employees expressed interest in joining the International Longshore and Warehouse Union (ILWU). The ILWU already represents dockworkers at the ports who handle Rite Aid shipping containers that are offloaded from ships and then transported to distribution centers, including Lancaster. In March 2008, the distribution center workers voted to form a union, overcoming an expensive and vicious anti-union campaign waged by Rite Aid management. The company engaged in a host of illegal labor activities, including disciplining, harassing, and firing union supporters. The company's behavior was so egregious that the National Labor Relations Board prepared to try Rite Aid on 49 violations of federal labor law. Rite Aid executives chose to settle the charges rather than defend their costly and illegal campaign against employees having a voice at work.
Management's aggressive interference did not end after the Lancaster workers voted to form their union. Rite Aid has continued a costly and intense anti-union campaign that has included harassing workers, issuing warnings and suspensions to union supporters, and firing at least six union supporters on flimsy pretexts. Charges alleging new unfair labor practices, related to the company's failure to bargain in good faith, are pending.
"Rite Aid is wasting precious time and money on their anti-union campaign when all of us should be focused on getting this company back on the right track," said Mr. Rubio. "Management should be working with us, instead of against us, to help this company succeed."
Prior to attending the shareholder meeting, Mr. Rubio met with the AFL-CIO and other unions representing workers at Rite Aid. At the meeting, an AFL-CIO representative announced that a special briefing was being organized for industry analysts and investors in early 2009.
Trustees of union health and welfare funds, which have an important say over lucrative contracts with pharmacies including Rite Aid, are expressing concern about the company's poor labor relations record. At a recent Employee Benefits Conference in San Antonio, hundreds of union plan representatives received detailed information about Rite Aid's ongoing labor dispute in Lancaster.
In addition to financial and labor problems, Rite Aid has been entangled in a number of consumer fraud cases. The company has defended itself against a slew of consumer fraud allegations during the past decade, and is now in litigation with the New York Attorney General. Last summer an investigation by the Attorney General found that 112 Rite Aid stores had carried or sold expired products. The announcement of the New York allegations came as Rite Aid was settling a similar case with Attorney General of New Jersey.
A more detailed report documenting Rite Aid's mismanagement and attempts to suppress workers' rights may be obtained by contacting Rand Wilson at the above number or by email at firstname.lastname@example.org.
The International Longshore and Warehouse Union unites more than 45,000 workers in over 60 local unions in the states of California, Washington, Oregon, Alaska and Hawaii.
Report this post as:
GUIDE TO REBEL CITY LOS ANGELES AVAILABLE
lausd whistle blower
Help KCET and UCLA identify 60s-70s Chicano images
UCLA Luskin: Casting Youth Justice in a Different Light
Change Links April 2018
Nuclear Shutdown News March 2018
Join The Protest Rally in Glendale on April 10, 2018!
Join The Protest Rally in Glendale on April 10, 2018!
Spring 2018 National Immigrant Solidarity Network News Alert!
Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A.
Steve Mnuchin video at UCLA released
Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups
After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video
Resolution of the Rent Strike in Boyle Heights
What Big Brother Knows About You and What You Can Do About It
Step Up As LAPD Chief Charlie Beck Steps Down
Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29
Don’t let this LA County Probation Department overhaul proposal sit on the shelf
Echo Park Residents Sue LA Over Controversial Development
Former Signal Hill police officer pleads guilty in road-rage incident in Irvine
Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents
Center for the Study of Political Graphics exhibit on Police Abuse posters
City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre
Professor's Study Highlights Health Risks of Urban Oil Drilling
Claims paid involving Pasadena Police Department 2014 to present
Pasadenans - get your license plate reader records from police
LA Times Homicide Report
More Local News...
Doxa du lobby
Tech workers organize
Architect Stephen Francis Jones
UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for
Shadowgun Legends Hack and Cheats
What does the Quran Say About Islamic Dress??
Biodiversité ou la nature privatisée
The Market is a Universal Totalitarian Religion
Book Available about Hispanics and US Civil War by National Park Service
The Shortwave Report 04/20/18 Listen Globally!
The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder
Paraphysique de la dictature étatique
Book Review: "The New Bonapartists"
The West Must Take the First Steps to Russia
Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine
The Shortwave Report 04/13/18 Listen Globally!
“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize!
The World Dependent on Central Banks
Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine
March 2018 Honduras Coup Again Update
Apologie du zadisme insurrectionnel
ICE contract with license plate reader company
Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes
Prohibiting Micro-Second Betting on the Exchanges
Prosecutors treat Muslims harsher than non-Muslims for the same crimes
More Breaking News...