Key insights
- CVS faces a potential strike by over 500 distribution center workers in Virginia starting May 1, impacting stores across the Mid-Atlantic. The Teamsters union alleges CVS is demanding cuts to healthcare and benefits, while CVS claims it has contingency plans to minimize disruptions. The potential strike poses a minor risk to CVS's supply chain and near-term operations.
By Christy Santhosh
April 16 (Reuters) - More than 500 CVS Health drivers and warehouse workers at the healthcare conglomerate’s Fredericksburg, Virginia distribution center have voted to authorize a strike on May 1, the International Brotherhood of Teamsters said on Thursday.
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The workers, represented by Teamsters Local 592, are demanding a fair agreement and rejecting the healthcare conglomerate’s concessionary demands, the union said.
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"If CVS keeps pushing concessions and refusing to take bargaining seriously, we will be forced on the picket line May 1," said Chris Donald, a 38-year-old warehouse worker and member of Local 592.
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Teamsters said CVS is demanding cuts to affordable health care and other core benefits.
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"CVS is choosing greed over its workforce. We will not accept a concessionary contract and we will fight to protect every benefit our members have earned," said Jim Smith, president of Teamsters Local 592.
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The group of workers supplies CVS stores across the Mid-Atlantic, including Washington, D.C. and Baltimore, and a strike would disrupt operations across the region, Local 592 said.
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Meanwhile, CVS told Reuters a strike is not imminent and that it is in active discussions with the union.
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The healthcare company said it is confident it can "reach an agreement that supports workplace safety and competitive wages and benefits."
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CVS added it has contingency plans to ensure its stores and pharmacies continue to receive shipments, saying it can work quickly to replenish impacted products if there is a disruption.
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Teamsters did not immediately respond to a Reuters request for comment.