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More than 7,000 employees at CVS pharmacy locations across California cast strike votes citing complaints about inadequate wages and the high cost of healthcare benefits.
The dispute between CVS and the union remains unresolved as their previous contract expired at the end of June 2024. Despite CVS’s position as a healthcare giant, the average store clerk earns less than $20 an hour, and workers are pushing for better healthcare options, enhanced staffing, and safety measures.
Employees have voiced frustration not just over financial compensation, but also over difficult working conditions. According to one worker, the company seems unwilling to address many of the store-level challenges that staff face daily, such as theft and safety concerns.
Some employees have even reported personal harassment on the job, including threats of violence after trying to deter shoplifting.
Why are CVS workers set to strike?
The situation is exacerbated by the fact that a significant portion of CVS employees don’t even use the company's own health insurance. A survey of union members from UFCW Local 770 found that 64% of workers lacked coverage through CVS, with 77% saying the costs were simply too high.
The figures stand in stark contrast to CVS’s global standing as the second-largest healthcare company, which made over $11 billion in profits in 2023.
Meanwhile, CEO Karen Lynch received a compensation package exceeding $21 million that same year.
The United Food and Commercial Workers local union bargaining committee has recommended a yes vote on the strike authorization, with results expected late on 27 September.
The union is pushing for wage increases ranging from $3.60 to $6.35 per hour for store staff and pharmacy technicians, depending on their seniority. CVS’s counter-offer, however, is far more modest, with proposed raises of $1.90 to $2.35 per hour over the next three years.
CVS also hit by labor practice charges over understaffing
In addition to the financial disputes, the union has filed several labor practice charges against CVS, accusing the company of surveilling workers and trying to intimidate those involved in union activities. Workers also complain of understaffing and increased pressure to meet customer demands, with safety becoming a growing concern.
Melissa Acosta, a nine-year pharmacy technician at a CVS store in Lynwood, explained that working conditions have worsened as the company responds to rising theft by locking up products. However, the lack of staff available to assist customers only creates more frustration and delays.
The union has proposed lowering the cost of health insurance for workers and providing more staff for safety and training purposes, requests which have reportedly been turned down by CVS.
While the company hasn’t addressed the unfair labor practices publicly, CVS spokesperson Amy Thibault did confirm that some progress has been made, such as reducing the seniority required for top pay rates.
Thibault added that the company remains in discussions with the union and is hopeful that an agreement addressing staffing, wages, and safety will be reached soon, with talks set to continue in mid-October.
