Currently, we are in the process of bargaining for nearly 3,000 workers at Kroger in Toledo; these contracts, originally scheduled to expire in April, have been extended through August 7.  Contracts covering nearly 30,000 UFCW members in Region 4 (Ohio, Indiana, Michigan, Kentucky) expire this year, including the Cincinnati Kroger contract.   These expirations come in a time of continuing economic recession, and the Toledo area continues to experience relatively high unemployment numbers as a result of this recession.  We continue to work on merging the Grocery and Non-Foods agreements into one contract, as many provisions contained in these agreements are similar; the Meat Departments will continue to bargain separately. 

Your health benefits are provided through the Northwest Ohio Unions and Employers Benefit Fund.  Benefit cost has increased significantly over the last contract period, and the Fund needed every dollar of income from participating employers available through collective bargaining agreements and employee co-premiums.  The Fund is stable and solvent, but does not have a comfortable level of reserves beyond what is required to pay for current benefit obligations.  Adequate reserves are important to protect against sudden and unexpected spikes in utilization and expense (typically from catastrophic illnesses), or other unexpected adverse events.  Part of the challenge here is that the Fund is small, enrollment has declined somewhat, and the average age of participants has increased.   Medical cost inflation continues at a high level here, and across the country; we will need substantial increases in employer contributions to maintain current benefit levels, and to further build Fund reserves to protect benefits in the future.
 
In addition, there are some new and significant costs in the short-term associated with implementation of the new national health reform legislation enacted in March 2010.  These improvements are good for plan participants, but also come with a price tag that must be incorporated into our health care budget projections.  

As always, should you have any questions, please don't hesitate to contact your Union Representative.