Stop & Shop Freetown distribution center to remain open as Teamsters, company reach deal
FREETOWN - Teamsters Local 25 said it has reached a tentative agreement with Stop & Shop that will keep the company's Freetown distribution center open.
Contract affects 900 employees
Stop & Shop had demanded changes to workers' health insurance or said it would close the distribution center, saying the company needs to cut operating costs to lower prices. The company said it could save money by closing the Freetown distribution center but would keep the center if workers changed their health insurance. Stop & Shop originally wanted to put the workers on the same health care plan that management has and offered the Freetown employees a 25% raise over five years.
Teamsters rejected the proposal, threatening to strike at all Stop & Shop stores in New England if the Freetown facility closed. State treasurers in Massachusetts, Rhode Island and Connecticut wrote a letter to Stop & Shop's Amsterdam-based parent company Ahold Delhaize, warning a strike "would have far-reaching operational and economic consequences."
The proposed six-year contract will keep the Freetown facility open, saving the jobs of 900 employees at the distribution center.
"I am thrilled that we were able to work together on a new contract that both provides an outstanding package of wages and benefits to our associates and supports us in our strategy of improving the customer experience by reducing operating costs," said Stop & Shop President Roger Wheeler.
Teamsters to vote on contract within the week
The new contract will give new hires an 80% pay increase over the six years, while longer-term workers will see about a 30% raise. The agreement also preserves the Teamsters' health care and increases pension contributions.
"The final agreement not only contained significant increases in wages and working conditions but also provided job security to more than 900 Teamsters for the foreseeable future. We encourage all citizens to utilize Stop & Shop for the best groceries available in New England," said Thomas G. Mari, president of Teamsters Local 25.
The Teamsters will vote on the new contract within the week.
Stop & Shop has 117 stores in Massachusetts, 25 in Rhode Island and 83 in Connecticut. Stop & Shop closed seven Massachusetts stores in 2024.
