The International Brotherhood of Teamsters (IBT) and the American Red Cross (ARC) reached a tentative agreement on a new three-year contract, settling a labor dispute less than two days before a planned strike by the union.
The new deal includes, among other things:
- Annual wage increases of 3%;
- Continuation of the current health plan; and,
- A new Paid Family Leave program.
The tentative agreement still must be ratified by Teamsters local unions, according to a statement from the Red Cross. To allow time for those votes, the Red Cross and Teamsters have agreed to finalizing local contracts over the next several weeks.
The Teamsters had planned to strike against the Red Cross unless a labor dispute was settled by 6 a.m. Friday. The union represents approximately 1,600 Red Cross employees who support the organization’s blood collection and distribution efforts. In an email, a Red Cross spokesperson wrote that the ARC and the Teamsters participated in bargaining sessions on March 28 and March 29 and that negotiations were ongoing.
In a previous Facebook post, Teamster members at the American Red Cross had asserted: “Despite bringing in $2.91 billion in revenues in its last fiscal year, the Red Cross is trying to exploit us by forcing all of us who are in the ‘single’ tier of TeamCare to pay twice as much each month for our health plan. The Red Cross also refuses to offer more than a 2.75% wage increase for each of the first two years of a new contract and 3% in the third year.”
A spokesperson for the IBT confirmed that a tentative agreement was reached on the national agreement, however, there are eight remaining local union agreements that need to be voted on before a vote on the national agreement. “Our local union leaders will meet next week to discuss. Although the tentative agreement averts a Teamsters strike, there is still a long way to go. The process is ongoing.”
News website Wpta21.com published a March 17 letter allegedly from Carl Pecoraro, lead negotiator at the Teamsters Coalition to David Gillis, the American Red Cross’s vice president of labor relations, which stated the IBT is seeking contract improvements that include better wages, a pension retirement plan, addressing paid time off benefits and retention of “our affordable TeamCare Health plan.”
A statement from leaders at the American Red Cross acknowledged they had been notified of a potential strike. “We have a longstanding history of working together with our labor partners to solve complex problems and remain committed to negotiating in good faith to reach the best possible agreement for both the organization and our valued employees,” American Red Cross leaders wrote in the statement. “We have presented mutually beneficial proposals, providing opportunities to increase wages and maintain generous health benefits.”
According to the statement, a work stoppage would put more than 100,000 blood product donations at risk across the United States during April alone. “The Red Cross supplies about 40% of the nation’s blood, so it is critically important we maintain a readily available blood supply for patients in need,” the statement continued.
The Red Cross had contingency plans in place to continue meeting the needs of hospitals and patients if a strike begins, the statement continued.
There have been some discussions, an American Red Cross spokesperson wrote in an email to The NonProfit Times. “[B]oth parties have reached tentative agreements on many terms and the Red Cross looks forward to continuing those negotiations,” the spokesperson wrote. The spokesperson did not elaborate on the nature of the tentative agreements.
Workers at the American Red Cross have been affiliated with the Teamsters since July 31, 2015, when members entered into a collective bargaining agreement with eight unions, including the American Federation of Teachers; the American Federation of State, County and Municipal Employees; Communications Workers of America; International Brotherhood of Teamsters; Service Employees International Union; United Auto Workers; United Food and Commercial Workers Union; and United Steelworkers. At the time, the collective bargaining agreement covered around 4,000 workers, according to the Canton Daily Register.
The most recent contract between the Red Cross and the Coalition of American Red Cross Unions covered Oct. 1, 2018 through Sept. 30, 2021.
