Union: Osco’s Total Compensation Package Inferior to Pharmacy Competitors
Osco management has once again misrepresented the Teamsters Local 727 Bargaining Committee’s position during negotiations, this time in regards to the company’s total compensation package for pharmacists.
During Wednesday’s federal mediation session, the Teamsters Local 727 Bargaining Committee made clear at the bargaining table that in analyzing the total compensation packages — including wages, health care, vision insurance, retirement, Legal & Educational Assistance, stock options and employee discounts — Osco falls far short of its pharmacy competitors, CVS and Walgreens.
“This is the environment you’re competing in, and we want you to hire the best pharmacists, but the facts show that you’re paying less when you factor in all these other things,” Local 727 Secretary-Treasurer John T. Coli said at the bargaining table. “We wanted to be factual across the table, and you wanted to talk about total compensation packages, so here’s the reason why your competitors are superior.”
As the union explained during a mid-day bargaining update to Osco pharmacists on Wednesday, Osco management gave the Teamsters Local 727 Bargaining Committee a presentation with slides explaining that the company views its health care costs as part of a total compensation package in order to be competitive with CVS and Walgreens.
However, the union found that Osco’s presentation was incomplete and did not accurately represent the three companies’ total compensation packages. In response, the union created a chart to compare the complete packages for Osco, CVS and Walgreens pharmacists under their current contracts.
DOWNLOAD UNION’S TOTAL COMPENSATION COMPARISION CHART
It is also important to note that:
- CVS pharmacists participate in the Teamsters Local 727 Legal & Educational Assistance Benefit and have union vision insurance, both of which are completely employer-paid.
- CVS pharmacists have enjoyed a dollar-for-dollar 401(k) match up to 5 percent since they joined the Teamsters Union.
- CVS offers pharmacists a minimum 10 percent discount on CVS stock.
- Walgreens pharmacists enjoy a guaranteed dollar-for-dollar match on profit sharing up to 4 percent and a discretionary match thereafter.
- Osco no longer offer pharmacists stock options.
- CVS pharmacists receive store discounts of 20 percent on all items and 30 percent on CVS brand items. Walgreens pharmacists receive 15 percent store discounts on all merchandise except prescriptions, liquor and dairy products. Osco cut employee store discounts during the last contract term.
- All of CVS’s health care plans include 80 percent coverage; only two Osco plans have 80 percent coverage.
- CVS does not have a wellness qualifier to receive reduced premium rates, and CVS pharmacists can choose a less expensive plan without an increase to co-insurance. Osco pharmacists have a wellness qualifier to receive reduced premium rates, and if they choose a less expensive plan, it comes with a 10 percent increase in co-insurance.
- Osco’s HRA and PPO plans have co-pays for emergency room and in-patient hospital visits.
- CVS pharmacists receive 100 percent coverage for preventative and non-preventative treatment at CVS Minute Clinics.
- Some of CVS’s plans have lower in-network deductibles and out-of-pocket maximums than some of Osco’s plans.
- CVS provides greater HSA contributions.
“When you look at this chart, it is plain as day: Osco’s compensation package is inferior,” Coli said. “Our pharmacist members are smart enough to know the difference, and that’s why they are staying strong in demanding the better wages, better health care and better retirement benefits that they deserve.”
If you have questions, contact your Local 727 business representative, Zach Frankenbach, at (847) 696-7500 or [email protected].
