More than 7,000 workers at CVS stores across California are holding a strike vote this week after accusing the US’s largest pharmacy chain of shortchanging staff and failing to provide affordable healthcare.
CVS and its union remain far apart in negotiations on a new contract. Their current union contract expired on 30 June 2024.
The union said the average CVS clerk makes less than $20 an hour, and the union wants improved healthcare costs for employees, and improvements to safety and staffing.
The United Food and Commercial Workers local union bargaining committee has recommended a yes vote on the strike authorization, with results expected late on 27 September.
“I work full-time yet can’t afford to get health insurance, which is ridiculous, because CVS owns Aetna, and the only option I am given is a health insurance plan that’s outside of what I can even afford due to the pay of my job,” said Ian Peggs, a shift supervisor at a CVS store in San Luis Obispo, California.
He said he made the same wage he received when he started working at the store in 2020, and claimed his store was frequently understaffed and that it experienced frequent thefts, but workers were not given any security or resources even though CVS corporate pressured them over high theft and product shrink losses.
“They complain about things that are happening in store, yet want to do nothing to remedy the situation that they are perpetuating by not helping us,” added Peggs. “While we are customer service, it’s now to a point where on a daily basis, I am personally attacked for being a member of the LGBTQ community. I catch someone stealing and it’s an automatic threat on my life.”
According to a survey of CVS members at UFCW Local 770, 64%of workers reported not having health insurance through CVS, with 77% citing the high costs for not being able to use it. The union has criticized these high costs given that CVS is the second-largest healthcare company in the world. CVS also reported more than $11bn in profits and its CEO, Karen Lynch, received more than $21.6m in total compensation in 2023.
Over the three-year contract, the union has pushed for raises of at least $3.60 an hour for store associates with less than five years of seniority to $6.35-an-hour wage increases for lead pharmacy technicians. CVS’s latest proposal only offered $1.90-an-hour wage increases over three years for store associates and $2.35-an-hour increases for lead pharmacy techs.
The UFCW has filed several unfair labor practice charges with the National Labor Relations Board against CVS, alleging surveillance of workers, intimidation and refusing to allow workers to speak with union representatives.
“They’re watching over workers, they’re intimidating union-active members and they’re really obstructing the communication with union representatives,” said Melissa Acosta, a CVS pharmacy technician for nine years in Lynwood. “We have unsafe working conditions in the front of the store and pharmacy. The answer to that for the company is to lock everything up. Meanwhile we’re understaffed and there’s barely any workers to unlock these shelves that everything’s been locked up, and it puts more pressure on them, and it frustrates the customers even more.”
Acosta said that despite CVS being a healthcare company, she had not experienced any benefit from that as she opts to use health insurance coverage through the marketplace rather than through CVS because she cannot afford it through her employer.
The union also claimed CVS had rejected their proposal to cut health insurance costs for many workers, and rejected proposals to improve staffing and provide workers with time to complete safety trainings. Workers are pushing for safety improvements, including security, trainings and improved staffing.
Amy Thibault, a spokesperson for CVS, did not comment on the unfair labor practice charges in an email, but noted that CVS had agreed to tentative agreements to lower top rate seniority pay levels from six to five years of service, regardless of job classification.
“We’re in active discussions with the UFCW and are confident we can reach an agreement that supports workplace safety, appropriate staffing, and competitive wages and benefits,” Thibault said. “There’s more to do, but we’re committed to working together. We look forward to reconvening with UFCW on October 16 and 18 to continue negotiations and hope to finalize an agreement soon.”
