Rite Aid workers rally for better pay, increased safety amid contract negotiations
The company emerged from bankruptcy earlier this month, having shed billions in debt, which workers argue means they can afford fair wages and benefits.
Dozens of Rite Aid workers gathered outside one of the company’s pharmacies in Garden Grove Friday morning, demanding higher pay, improved safety and more amid ongoing contract negotiations.
“Sitting across from the company on the bargaining committee has opened my eyes to exactly how Rite Aid thinks of its workers,” Maggie Esparza, a price accuracy coordinator at Rite Aid in Belmont Shores, said during the rally. “Rite Aid doesn’t care about us; they’re only thinking about profits. They want us to be grateful we have jobs; to not ask for more, but we know we’re worth more and know we deserve to be respected in our workplace.”
The company did not immediately respond to request for comment.
Negotiations began July 10 between the company and the United Food and Commercial Workers, the union that represents more than 3,500 Rite Aid workers in California, including 58 workers at five Long Beach stores. The old contract was set to expire on July 20 but was extended through Sept. 27, according to union spokesperson Jenna Thompson.
Due to being understaffed, many Rite Aid workers face challenges such as an increase in workplace violence and shoplifting, according to the union. With their safety on the line, workers are demanding pay increases, better benefits, improved staffing levels, hourly guarantees and improved safety measures.
“Rite Aid is a key provider of health care for the people of Garden Grove, and throughout California,” UFCW Local 324 President Andrea Zinder said during Friday’s rally. “It’s the workers who keep customers and patients coming back into the store. Front line and pharmacy staff kept the company afloat after years of mismanagement and Rite Aid’s filing for bankruptcy protection. It’s time Rite Aid provides workers with fair pay and working conditions to the employees who have made that possible.”
Rite Aid filed for bankruptcy in October 2023. In June of last year, the company had $135.5 million cash on hand and $3.3 billion in long-term debt, according to a CNN report. The debt exceeded the value of the company’s assets by nearly $1 billion.
On Sept. 3, the company announced it completed its financial restructuring, emerging out of Chapter 11 “as a stronger company” with a downsized footprint, better operating model, less debt and additional financial resources.
The company eliminated $2 billion of total debt and received $2.5 billion in financing to support the business moving forward.
“We are grateful for the ongoing support of our customers, associates and partners, and we look forward to continuing to provide leading pharmacy services designed to improve health and wellness outcomes across the communities we serve,” CEO Jeffrey Stein said in the announcement. “I am excited about Rite Aid’s future as it continues to focus on executing its strategy and delivering for its customers and stakeholders.”
Workers argue that the newfound financial security of the company means it can provide fair pay and working conditions.
“Rite Aid – it’s time to step up and give us a contract that provides fair wages so we can support our families,” Esparza said.
“It’s time Rite Aid prioritizes hard workers over excessive executive salaries,” Zinder added. “We’re going to keep fighting until the workers get a fair contract that respects them.”
