Walgreens Purchase of Rite Aid Announced; All Contract Terms in Full Force & Effect
An announcement was made on October 27 that Walgreens is purchasing Rite Aid. This transaction would result in the second largest drug store company in the country. CVS would maintain its status as the largest chain with some sixty percent of the market but the new Walgreens, with the addition of Rite Aid, would be second largest at about 40% of the stores in the retail drug industry.
Regardless of the purchase by Walgreens, Local 5 members working at Rite Aid will continue to be covered by all terms and condition s of the recently ratified union contract. The job protections, wage protections and health and welfare coverages made possible by the contract will remain in full force and effect. There is some distance to go before this announced takeover is final. The proposal must pass the scrutiny of the Federal Trade Commission and other government bodies before it can be finalized.
The company has the obligation, mandated by federal law to engage the union in talks regarding the purchase. Local 5 will continue to forcefully advocate for your interests with management and keep you up to date on developments. Visit www.ufcw5.org for updates.