The union representing San Francisco Walgreens workers alleges that the troubled pharmacy chain attempted to force workers laid off amid citywide store closures to waive their right to backpay in order to access severance.
Walgreens allegedly required laid-off employees in the city to “agree that all past due wages have been paid” in order to receive their severance, according to a complaint filed with the federal National Labor Relations Board and obtained by Gazetteer SF. The complaint was filed by UFCW Local 648, the union that represents Walgreens employees in the city, in early March.
In November, an arbitrator ruled that Walgreens workers were owed backpay by the company. But with Walgreens announcing that it would close 12 San Francisco stores earlier this year, the complaint states that Walgreens attempted to use the closures as an opportunity to avoid paying workers.
“The employer's failure to carve the amounts due but unpaid as a result of the arbitration is retaliation against bargaining unit employees for using the grievance process,” reads the complaint.
UFC Local 648 president Dan Larson told Gazetteer Tuesday evening that Walgreens did pay workers, but only after the union filed its complaint. He added that the union is still “waiting to see the payment breakdown” to confirm that union members were paid properly.
A Walgreens representative confirmed that the company already paid the workers, but was unable to immediately provide information about the timing or terms of the payment.
“We are fully committed to ensuring our team members’ contributions are appropriately acknowledged and rewarded,” Walgreens spokesperson Brigid Sweeney told Gazetteer in a statement. “We have paid the arbitrator’s award to eligible team members and confirmed payment with the union, and any claim to the contrary is completely baseless."
The San Francisco store closures announced at the beginning of the year continues a yearslong trend of challenges for Walgreens. The company, which previously attributed its closures in major cities like San Francisco to upticks in crime, has pulled back from that narrative in recent years. These closures, according to a statement, came from “increased regulatory and reimbursement pressures.”
In March, Walgreens announced it had agreed to be acquired by private equity firm Sycamore Partners to the tune of nearly $10 billion — a deal that will take the company private after nearly a century of being publicly held.
Editor’s note: This story has been updated to clarify that Walgeen’s announced in March that it had agreed to be acquired by Sycamore Partners.
