Retail pharmacy chains CVS Health Corp. and Rite Aid Corp. are facing significant challenges as labor disputes escalate in Southern California. Over the weekend of October 18-20, members of the United Food and Commercial Workers (UFCW) union from seven CVS Pharmacy stores initiated a three-day strike. This action signals the possibility of further unrest, potentially affecting additional locations and labor groups within the state.
Workers, including pharmacy technicians and store clerks, assert that CVS has not participated in meaningful negotiations regarding their contracts. The complaints center around insufficient wages, with many employees claiming that the average pay for clerks stands at less than $20 per hour. This situation poses a financial strain, making it difficult for them to afford health insurance plans offered by CVS, which operates its own health insurance division.
Kristona Carlton, a pharmacy technician striking in Los Angeles and a member of the UFCW 770 CVS bargaining committee, expressed the sentiments of her colleagues. “This weekend CVS workers made our voices heard and told CVS that it is absolutely not okay for management to intimidate us for wanting fair bargaining and a strong contract,” she said. Carlton emphasized that while this first round of strikes might be concluded, their efforts will persist until CVS engages satisfactorily with their demands.
During the strike, CVS maintained operations at the affected stores by employing non-union workers and managers. Company spokesperson Amy Thibault conveyed disappointment over the UFCW’s decision to strike, noting that the stores remained open and were adequately staffed.
Simultaneously, Rite Aid employees in Southern California have taken steps towards a similar path. Members of various UFCW local unions representing some 3,500 Rite Aid workers also voted to authorize a strike. The Rite Aid contract negotiations began in July, but union representatives report facing a lack of genuine engagement from the company, describing proposed contracts as disrespectful and dismissive of worker contributions.
The UFCW Rite Aid bargaining committee released a statement highlighting various labor violations by the company. Reportedly, Rite Aid’s management attempted to sidestep the union by making direct offers to employees, encouraging them not to sign petitions, and unilaterally altering contract provisions regarding meal breaks and incentives.
These labor actions are not isolated incidents; they reflect a broader wave of unrest within large pharmacy chains. In early October, it was reported that CVS Health plans to cut approximately 2,900 jobs as part of cost-reduction strategies. Rite Aid, having recently exited bankruptcy, has already closed several stores in Michigan and Ohio, with many workers consequently losing their jobs. Similarly, Walgreens has announced plans to close 1,200 locations starting in 2025.
The scale of these pharmacy chains is considerable. CVS Health, headquartered in Woonsocket, Rhode Island, employs over 300,000 individuals, including more than 40,000 healthcare professionals. The store chains collectively rank prominently in the food and consumables retail sector, with CVS placed fifth on Progressive Grocer’s 2024 top list and Rite Aid positioned at twenty-sixth.
The ongoing labor disputes at CVS and Rite Aid highlight the tension between management and employees within an industry that has become increasingly vital, especially amidst global health crises. As these employees continue to advocate for better treatment and fair wages, their actions could set a precedent for other labor movements in the retail and services sectors.
The outcomes of these strikes and negotiations will likely influence not just the CVS and Rite Aid workforce, but also the retail landscape as a whole. Consumer support for worker rights is growing, and public sentiment may play a crucial role in determining the resolutions of these disputes.
As labor negotiations and workers’ actions unfold in the coming months, stakeholders from various sectors will be closely monitoring how these major pharmacy chains respond to their employees’ demands for better wages and working conditions. The future of retail pharmacy, amidst rising operating costs, competition, and a reevaluation of worker treatment, remains uncertain.
