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Pa. liquor-store union contract could complicate efforts toprivatize liquor, wine sales by 123wert sdfsf





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Pa. liquor-store union contract could complicate efforts toprivatize liquor, wine sales by
Article Posted: 09/28/2013
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Articles Written: 2217
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Pa. liquor-store union contract could complicate efforts toprivatize liquor, wine sales


 
Business,Business News,Business Opportunities
HARRISBURG, Pa. — The union representing 3,500 employees ofPennsylvania's state-owned liquor stores announced Tuesday thatthey have ratified a new labor contract that runs through mid-2015,igniting a debate over the workers' rights if ongoing efforts toprivatize the liquor and wine trade are successful. One union leader said the pact requires any private companies thattake over all or any portion of liquor and wine sales to hiredisplaced state-store employees and to adhere to contractprovisions covering salaries, health insurance and pensionbenefits. The state must advise prospective operators that the contract is"binding in its entirety upon them for the duration of its term,"said Wendell W. Young IV, president of Local 1776 of the UnitedFood and Commercial Workers, which represents more than 2,000employees in eastern and central Pennsylvania.



"This, I think, really makes any discussion of privatization mootfor several years," Young, a vocal privatization foe, said in atelephone interview. A spokesman for Gov. Tom Corbett, who supports closing the morethan 600 state stores, argued that private businesses cannot beforced to honor a contract covering state employees. "A collective bargaining agreement is not assignable," said DanEgan of the governor's Office of Administration, noting that thecontract language governing state-store closings dates back to theCasey administration.



"We've always held that that provision is not enforceable," Egansaid. The four-year contract with two UFCW locals, which is retroactiveto July 1, 2011, when the previous contract expired, provides payraises totaling more than 6 percent. They include a wage freeze in the first year, a 1 percent raise onJuly 1, back-to-back 0.5 percent increases in July 2013 and January2014, and a 2 percent boost in July 2014, plus adjustments that addup to an average 2 percent increase over the life of the contract,Young said. Union members approved the contract, 85 percent to 15 percent, inregional meetings Sunday. The ratification vote came amid a renewed effort by House MajorityLeader Mike Turzai to put a privatization bill up for a House votebefore lawmakers adjourn for their summer break in June.



But it iscompeting for attention with a state budget for the fiscal yearbeginning July 1. What Turzai had previously described as a "caucus policydiscussion" on privatization this week had been downgraded byTuesday to "one of a number of issues that we cover in caucus," hesaid. The Allegheny County Republican declined to predict how soona bill may reach the floor. "We're moving forward with deliberate speed," he said.

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