Kroger union workers in Kentucky and Indiana get a pay boost under new contract

Kroger hourly employees will get a boost in starting pay at more than 80 stores in Kentucky and Southern Indiana under a new labor agreement overwhelmingly ratified by workers this week.

The four-year deal is the first for area employees under "Restock Kroger," a $500 million investment across the nation to boost salaries and training as the Cincinnati-based grocery giant battles increasingly aggressive competition from Walmart, Target, Amazon and dollar discount chains.

The United Food and Commercial Workers Local 227 announced on its Facebook page late Thursday that 93% of its members had approved the contract. It covers more than 13,500 store clerks and department heads in the two states. 

Union leaders cheered the contract that takes effect June 30, saying it is a win because salary increases go to new workers, veteran stock clerks and cashiers, while creating new leadership positions in selected parts of stores.

"We deserve it," said Elisa Messex, a chief steward and four-time bargaining committee member who works at the 4915 Dixie Highway store.

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In a statement, Kroger spokeswoman Erin Grant said: "As our business continues to grow, we want our valued associates to grow as well. This contract represents a significant investment in wages and company funded benefits like health insurance and pension.

"At Kroger, folks come for a job, many as their first job, and end up staying for a career. This contract comes after thoughtful and productive work by both the company and union bargaining committees," she said in a text. 

Under the terms, full-time clerks at the top of the pay scale would receive a 35-cent-per-hour raise in each year of the contract. Those workers would receive a total of $7,280 over the term of the pact.

Department heads would receive an additional 40 cents, or $8,320 over the contract term.

"Everybody is benefiting from this better agreement," said Caitlin Blair, spokeswoman for Local 227 based in Louisville. "This contract really rewards people who work hard."

Part-time workers and new hires, paid $8 an hour in most stores, now will receive base pay of $10 an hour and $12 an hour by the end of the agreement. They're also eligible for health care benefits.

Premium increases for night shift work will increase from 50 to 75 cents in June, and to $1 per hour in Louisville, Lexington and surrounding stores. Kroger already had increased that premium in busier stores to ensure its shifts were covered. 

The deal also includes fully funding the pension obligation, which is a big deal in light of the crisis now overshadowing Kentucky's badly underfunded public employee system. Full-time hourly Kroger employees can become vested after five years, Blair said.

Health care benefits for full-time workers, Blair said, include a minor increase. Those hired before August 2012 will pay a range of $11 to $14.30 a week for benefits, with a slight boost in 2020. More recently hired employees will pay a from $16 to $20 a week, which is far better than most private sector employees.

One concern for worker advocates is that many companies have bumped starting wages to attract new workers, but many veterans haven't shared in similar increases, she said, so the bargaining team focused on getting new and senior workers get more money.

"It was important for us to move everybody forward," she said.

Messex, 53, who's worked as a bagger, cashier, cake decorator and now in the health and beauty department, said knowing that the pension is fully funded and health care benefits will remain affordable is huge to her and her family.

"It's the best contract I've seen in years," Messex said.

Grace Schneider: 502-582-4082; gschneider@courierjournal.com; Twitter: @gesinfk. Support strong local journalism by subscribing today: www.courier-journal.com/graces.