Giant Eagle workers to see 3% to 5% raises under new union contract

More than 5,000 unionized Giant Eagle employees will see pay raises ranging from 3% to 5% each of the next four years under a new contract.

The workers also will continue to have no-cost health benefits, a 401(k) and pension plans, depending on their role with the Cranberry-based company, according to Wendell Young IV, president of United Food and Commercial Workers Local 1776.

“Our members turned out and voted 94% in favor of this new agreement,” Young said.

They are employees of 34 stores in Pennsylvania and West Virginia. Other Giant Eagle stores are privately owned or are covered under separate contracts.

“We are excited to reach an agreement with UFCW Local 1776 that is supported by our team members and that reflects our appreciation for their commitment to meeting the needs of the communities we serve,” said Bill Artman, president and CEO of Giant Eagle.

The previous contract expires Thursday, Young said. Like that deal, this one covers four years.

The company and union lauded the cooperation of the other amid a competitive industry. Giant Eagle is the last unionized grocery chain in Southwestern Pennsylvania, Young said.

Giant Eagle also faces competition from national chains, smaller stores and online retailers, Young said.

“This is a very tough business. You have lots of others selling a lot of the same things,” he said.

It’s among the reasons it was crucial for the union and company to work together, Young said.

“We thank Local 1776 leadership for the collaborative, member-focused approach it brought to the negotiations for this new contract,” Artman said.

In addition to shouldering the increased costs of health care, Giant Eagle also will increase its pension benefits and the company’s contribution to 401(k) plans, Young said.

Those benefits vary depending upon an employee’s position. The contract represents the first that combines workers throughout Giant Eagle’s departments under one pact.

Employees also will see greater flexibility when scheduling vacation time, Young said.

Giant Eagle employees start out at about $15 per hour for a teenager working part time to more than $20 per hour depending on position. The company’s wages have increased by at least $5 per hour since 2018, when a new contract had a starting rate of $10 per hour.