March 4, 2010
Dear Fellow Safeway Employee:
I am very pleased to announce that Safeway’s Eastern Division is offering a select group of its Tier I retail store employees a Voluntary Buyout Program (VBP or Program). Under this exciting Program, Safeway will offer eligible employees the opportunity to receive separation benefits in the form of a substantial lump sum payment if they voluntarily choose to resign from Safeway and are accepted pursuant to the terms of the Program.
The full details of the Program will be explained to you during one of three meetings scheduled for early April. These meetings will be held away from the workplace and only Tier I employees who are eligible to participate in the VBP will be attending these meetings. All eligible employees are strongly encouraged to attend the meeting designated for them. Employees who are scheduled to work during the date and time of their meeting will be excused from work without loss of pay to attend their meeting. Employees will need to show a photo identification card to be admitted to the meeting and receive their personal information packet.
The meetings will be held by district number at the following times and locations:
Tuesday, April 6, 2010 at the Holiday Inn BWI Airport, 890 Elkridge Landing Road, Linthicum Heights, MD 21090 (410) 859-8400
District 82 at 10am
Local 27 stores in District 81 and 83, which include stores 128, 1075, 1559,
1616, 1678, 1815, 952, 1317, 1351, 1460, 1539, 1939 and 2629 at 2pm
Wednesday, April 7, 2010 at Martin’s Crosswinds, 7400 Greenway Center Drive, Greenbelt, MD 20770 (301) 474-8500
District 81 and 88 at 10am District 83 and 86 at 2pm
Thursday, April 8, 2010 at the Holiday Inn Alexandria Southwest, 2460 Eisenhower Avenue, Alexandria, VA 22314 (703) 966-3400
District 84 and 85 at 10am District 87 at 2pm
In the interim, here is some basic information about the Program:
-The Program is completely voluntary. There is no requirement that anyone who is eligible participate.
-The Program is being offered to our “Tier I” full and part-time clerks (food clerk, service clerk, weigher wrapper, deli clerk, seafood clerk, courtesy clerk, and variety/GM clerk), meat cutters, assistant managers and department managers. Generally this means that UFCW Local 27 represented employees hired prior to April 30, 1983 and UFCW Local 400 represented employees hired prior to October 23, 1983 are eligible for the Program. The VBP is limited to retail store employees who are currently employed at a Safeway store, and who worked a minimum of 400 hours, in the 2009 calendar year.
-Eligible employees will receive specific information about the Program in ample time to confer with their family, financial advisor or others before making a decision.
-The lump sum payout amounts are as follows*:
Assistant Managers represented by the UFCW, Department Managers and
Clerks (excludes meat department managers, first cutters and meat cutters) who
have worked more than 1,664 hours in 2009 are eligible for $50,000.
Assistant Managers represented by the UFCW, Department Managers and Clerks (excludes meat department managers, first cutters and meat cutters) who
have worked 1,664 hours or less in 2009 are eligible for $40,000.
Meat Department Managers, First Cutters and Meat Cutters who have worked
more than 1,664 hours in 2009 are eligible for $40,000.
Meat Department Managers, First Cutters, and Meat Cutters who have worked
1,664 hours or less in 2009 are eligible for $35,000.
*These lump sum payments will be taxed according to IRS rules and guidelines for these types of payments. Note: These lump sum payments are separate from—and therefore in addition to—any severance amount you are due from the UFCW and FELRA Severance Plan.
Eligible employees who volunteer to participate in the VBP and who are accepted will have their last day of employment scheduled by Safeway based on the operational needs of the business. Safeway anticipates the last day of employment for eligible employees who apply and are approved for the Program could be as early as May 7, 2010, and we anticipate all employees who have applied for the VBP and been accepted will terminate by August 7, 2010.
This letter provides only a brief description of the terms of the VBP and receipt of the letter is not an indication of eligibility to participate in the Program. Eligibility, benefits, procedures and all other aspects of the Program will be explained in further detail at the above-referenced meetings and detailed, final written documentation will be provided at that time. Safeway reserves the right to change or modify the Program’s eligibility requirements, benefits or procedures.
We look forward to discussing this matter further with you in the near future.
Eastern Division President