The Region : Insurance Dispute Delays Gemco Checks

Disputes over insurance guarantees in the severance pay package is holding up final checks for former employees of Gemco stores in Southern California, according to Norm Bell, secretary treasurer of Local 135, United Food and Commercial Workers Union. He said Lucky Stores, which owned the 80-store chain that closed its doors Dec. 19, wants the union to take over $40 million in health and liability insurance for retired Gemco workers, but the union, which represents former Gemco employees in San Diego County, has rejected the package because of this provision. Gemco employees in Northern California, whose union contracts contained no health or liability coverage for retirees, have already started receiving their final checks, a Gemco spokeswoman said.