Pennsylvania AFL-CIO: Following Union Strategy Session...Workers' Rights Groups Say Mismanagement and Corporate Greed Plague Nation's Third-Largest Drug Store Chain
HARRISBURG, Pa., June 21, 2011 /PRNewswire-USNewswire/ -- Two leading workers' rights support groups will jointly release an "investor alert" on June 22 showing how Rite Aid's mismanagement and corporate greed have contributed to the company's poor performance during the past four years.
Jobs with Justice (www.jwj.org) and United Students Against Sweatshops (www.usas.org) timed the release of the investor alert to coincide with Rite Aid's annual shareholders' meeting on June 23 at the Hilton Hotel in Harrisburg, PA. Both groups have been active supporters of Rite Aid workers struggling to organize and win union contracts. The report will be posted on both websites on June 22.
Rite Aid has been struggling to return to profitability since the disastrous acquisition of the Brooks and Eckerd chains in 2007, which left the company deeply in debt. Rite Aid has consistently under-performed its top competitors, CVS and Walgreens, and has reported losses in 15 straight quarters (results for the 16th quarter ended on 5/31, will be reported on June 23).
Rite Aid's share price has plunged by about 80 percent since June 2007 and it is unclear if or when shareholder value will return to pre-Brooks-and-Eckerd-acquisition levels. Despite sagging share prices, Rite Aid executives continue to reward themselves with excessive compensation, including huge stock options, tax-free golden parachutes, luxury jet travel and other perks.
Rite Aid workers and union leaders will convene a special meeting of their own on June 22 to share information and develop common strategies for improving working conditions and the company's performance. Participants are expected from Rite Aid facilities in California, New Jersey, New York, Ohio, Pennsylvania, Washington and West Virginia.
An area of particular concern for Rite Aid employees is the company's plan to shift burdensome health insurance costs onto workers and taxpayers. Management is seeking to impose unaffordable health insurance plans on employees at Rite Aid facilities across the country.
Participants also are planning actions to support employees at seven stores in the Cleveland, Ohio area who have been forced out on strike for nearly 15-weeks because of unfair labor practices committed by Rite Aid.
Immediately before the company's annual shareholder meeting on June 23, Rite Aid workers will rally with Harrisburg-area union supporters at the Hilton Hotel. Rite Aid workers and union leaders are planning to attend the shareholder meeting as well.
Rite Aid workers have attended the last four shareholder meetings. Participation in these events has helped identify areas of common concern between employees and shareholders.
SOURCE Pennsylvania AFL-CIO
Share this article