News Blog
Week Ahead: Wegmans, Teamsters back in talks
Wegmans and representatives of Teamsters Local 118 are set to resume contract negotiations on Friday.
Approximately 900 Wegmans truck drivers and warehouse employees are represented by the Teamsters. Last week, those employees rejected what Wegmans officials called the company’s final and best offer. At the center of the issue is a plan to change employees’ retirement benefits.
Wegmans officials want to move the Teamsters into the company retirement plan. Union officials, however, want to continue participating in the union’s statewide pension fund.
The two arrangements have significant differences. The Wegmans plan is a defined contribution plan, similar to a 401(k), which means that retired workers can only draw down what’s in their account. The pension is a defined benefit plan, which means that workers pay into the fund during their working years, and then collect benefits for the rest of their lives after retirement.
When the Teamsters rejected Wegmans’ offer, they also authorized a strike. But no strike has happened yet.
Approximately 900 Wegmans truck drivers and warehouse employees are represented by the Teamsters. Last week, those employees rejected what Wegmans officials called the company’s final and best offer. At the center of the issue is a plan to change employees’ retirement benefits.
Wegmans officials want to move the Teamsters into the company retirement plan. Union officials, however, want to continue participating in the union’s statewide pension fund.
The two arrangements have significant differences. The Wegmans plan is a defined contribution plan, similar to a 401(k), which means that retired workers can only draw down what’s in their account. The pension is a defined benefit plan, which means that workers pay into the fund during their working years, and then collect benefits for the rest of their lives after retirement.
When the Teamsters rejected Wegmans’ offer, they also authorized a strike. But no strike has happened yet.
