Tom Tobin

ROC

Wegmans Food Markets has gone to federal court to resolve a dispute over workers' compensation payments to Teamsters-represented employees that the company says could cost it millions of dollars.

The legal battle is a continuation of a conflict with Teamsters Local 118 over Wegmans' wish to withdraw from the New York State Teamsters Conference Pension & Retirement Fund. A collective bargaining agreement was reached last November between Teamsters and Wegmans that included the company's withdrawal from the fund.

During a closeout audit of the withdrawal, the Teamsters said that Wegmans still owed workers' compensation payments to employees at a contribution rate of $5.22 instead of the $4.80 Wegmans said it paid previously.

The higher rate could apply going forward and potentially cost the Gates-based grocer millions. If the courts rule for the Teamsters, Wegmans would have to pay the higher rate. Until the courts decide, which could be two or three years, Wegmans still has to pay the $5.22 rate.

Company spokesman Jo Natale said Wegmans would have no comment, as it does not comment during ongoing legal matters.

In a court brief, Wegmans argued that it and the union did not agree to the higher rate and that its establishment lacked "any basis."

Last November, Wegmans announced that its more than 900 Rochester-based distribution and transportation employees, represented by Teamsters Local 118, voted in favor of a new contract.

The vote was 624 in favor and 62 opposed. Union members had rejected the same contract on Oct. 29.

Besides the move out of the Teamsters fund and into the Wegmans retirement plan, the new contract includes an immediate $1,000 lump sum payment for full-time employees ($500 for part-time); an 18 percent pay increase over the life of the six-year contract; and a combined package of retirement assistance options valued at over $10 million.

TTobin@DemocratandChronicle.com

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