More than 7,000 workers at CVS stores in California will strike this week, accusing the largest U.S. drugstore chain of downsizing and failing to provide affordable health care.
CVS and its union remain far apart in negotiations for a new contract. The current contract with the union expires on June 30, 2024.
According to the union, the average CVS worker makes less than $20 an hour. The union wants to improve employee health care and safety and staffing levels.
The local committee of the United Food and Commercial Workers union has recommended a vote to authorize the strike, with results expected on Sept. 27.
"I work full-time, but I can't afford to get health insurance, which is ridiculous because CVS owns Aetna and the only option I'm offered is a health insurance plan, which I can't afford because of the pay for my job," said Jan Peggs, a shift supervisor at a CVS store in San Luis Obispo, Calif.
He said he was making the same salary he was making when he started working at the store in 2020 and claimed his store was often understaffed and had frequent thefts, but that no security or resources were provided to employees, despite being pressured by CVS Corporation for more thefts and shrinking merchandise.
"They complain about what is going on in the store, yet they want to do nothing to fix the situation they are making worse by not helping us," Peggs added. "We work with customers, but now it's gotten to the point where on a daily basis I am attacked for being a member of the LGBTQ community. I catch someone stealing and it automatically becomes a threat to my life."
According to a survey of CVS members conducted by UFCW Local 770, 64% of workers said they do not have health insurance through CVS, and 77% cite the high cost of insurance. The union criticizes these high costs given that CVS is the second largest health care company in the world. CVS also reported more than $11 billion in profits, and its CEO Karen Lynch received more than $21.6 million in total compensation in 2023.
During the three-year contract, the union had sought wage increases of at least $3.60 an hour for store clerks with less than five years of experience and up to $6.35 an hour for lead pharmacy technicians. CVS' latest proposal calls for wage increases of $1.90 an hour over three years for store associates and $2.35 an hour for lead pharmacy technicians.
The UFCW filed several unfair labor practice charges with the National Labor Relations Board against CVS, alleging employee surveillance, intimidation, and refusal to allow employees to communicate with union representatives.
"They monitor employees, intimidate active union members and prevent communication with union representatives," said Melissa Acosta, a pharmacy technician at CVS Pharmacy in Lynnwood for nine years. "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. At the same time, we're understaffed and have almost no employees to unlock these shelves that have everything locked, and it puts an extra burden on them, which makes it even more frustrating for customers."
Acosta said that despite CVS being a health care provider, she has not felt any benefit from it because she prefers to use health insurance through the marketplace rather than CVS because she cannot afford it through her employer.
The union also said CVS rejected their proposal to reduce health insurance costs for many workers, and rejected proposals to improve staffing levels and give workers time to attend safety training. Workers are pushing for safety improvements including security, training and better staffing.
Amy Thibault, a CVS spokeswoman, would not comment on the unfair labor practice charges, but said CVS had reached tentative agreements to reduce the seniority pay level from six to five years of service, regardless of job classification.
"We are in active negotiations with the UFCW and are confident we can reach an agreement that supports workplace safety, appropriate staffing, competitive wages and benefits," Thibault said. "We still have a lot of work to do, but we are committed to working together. We look forward to meeting with the UFCW again on October 16 and 18 to continue negotiations and hope to reach an agreement soon."