Minnesota grocery workers rallied on Sunday as union talks dragged on with several local grocery banners.

United Food and Commercial Workers Local 663, which is conducting negotiations with Lunds & Byerlys, Kowalski’s, Cub Foods, and others, said it is fighting against retailers’ efforts to transition to a “tiered” model for health care at some chains, as well as other changes to wage and benefit structures. The union is cautioning that health insurance rates for families could increase significantly in 2028 under terms proposed by the retailers. Talks are set to resume this Thursday.

Workers, whose previous contracts expired in March, are preparing for a possible strike, according to a local CBS News report. In a video posted on the union’s website, however, the UFCW local said no strike vote had been taken and no strike was planned.

Minnesota Lt. Gov. Peggy Flanagan attended the rally on Sunday outside a Lunds & Byerlys store in Edina, Minn., in support of the workers, the report said.

Terms of the protest negotiations

The terms of the negotiations vary to some degree among each of the retailers, according to information posted by UFCW Local 663:

Cub Foods parent company United Natural Foods Inc. has agreed to raises for both full- and part-time employees, as well as a night-stocking premium of $1 per hour. The union said that UNFI’s offer is contingent on reaching a “prompt and peaceful settlement” will all of the retailers that are on the bargaining committee

Lunds & Byerlys is also offering raises to both full- and part-time employees, although the union said the increases for part-time workers were less than at other chains. The union is also opposed to proposed changes in vacation carryover and to the lack of increases in the 401(k) plan

Kowalski’s is also offering raises to both full- and part-time workers, among other benefits that the union supports. The union, however, is opposed to the lack of guaranteed hours for part-timers and to the lack of changes in the 401(k), among other proposals

Related:Puget Sound Allied Grocery workers reach tentative contract

In a statement, a group of Twin Cities-area retailers said they have met with UFCW Local 663 on 12 occasions during the past several months and have offered improvements in wages and healthcare coverage.

“It is unfortunate that the union has taken the unnecessary step of protesting at our stores, after rejecting our offers to meet more frequently early in the negotiating process,” the retailers said. “We hope the union will come to the table and work with leadership on an agreement that is fair to everyone and enables grocers to continue to meet the needs of the thousands of customers we serve each day.”

Related:Safeway and Albertsons workers go on strike in Colorado

The retailers also said they have a long history of “positive dialogue and collaboration” with UFCW 663 and that they remain committed to good-faith negotiations.

Similar disagreements are involved in the union’s ongoing talks with Jerry’s, Knowlan’s, Haug’s, and Radermacher’s.

If you look at this year’s legislative session from the perspective of a storyteller, you could say that the literary device of foreshadowing has come into play.

While discussing bills in committee, one House member or another will sometimes mention looming federal cuts to programs in medical, food or educational assistance, often suggesting that this will end up being the biggest issue facing state governments in 2025.

Such discussions often reach a kind of “we’ll cross that bridge when we come to it” conclusion, but Rep. Aisha Gomez (DFL-Mpls) has decided to be more proactive about a state response. She’s sponsoring HF2591, which would establish a fifth tier of the individual income tax at a rate sufficient to offset lost federal Medicaid funding.

Here’s how it would work: Minnesota Management and Budget would certify to the Department of Revenue the amount of federal Medicaid funding lost because of federal law changes and administrative actions, and the Revenue Department would calculate the income tax rate necessary to offset the loss in revenue for the 2026-2027 biennium.

House Taxes Committee hearing on bill to establish new fifth-tier state income tax rate 4/3/25

So consider it kind of a “rate to be determined,” but the new tier would apply to Minnesota taxable income of more than $1.67 million for married joint returns, $1 million for single returns, and $1.33 million for head of household returns.

Currently, Minnesota’s highest individual income tax rate is 9.85%, which is for those making $269,010 or more per year.

On Thursday, the House Taxes Committee laid the bill over for possible omnibus bill inclusion.

“We have a situation with our federal government where we’ve seen a [U.S.] House budget resolution passed some weeks ago,” Gomez said. “It has a negative $880 billion target for energy and commerce and a positive $4.5 trillion target for the Ways and Means Committee. … This $880 billion cut can only come from Medicaid. The $4.5 trillion positive target in Ways and Means is going to extend the Trump tax cuts, which disproportionately benefitted the biggest corporations in the world and multimillionaires and billionaires.

“Medicaid impacts every one of our districts, with 42% of Minnesota children relying on Medicaid for their health insurance. Half of long-term care is paid for not by Medicare, but by Medicaid.”

It’s clear that the majority of House DFL members like the bill, for it has 35 sponsors from that side of the aisle.

Although it’s difficult to calculate the impact of the bill’s changes without knowing a specific amount of federal cuts to the state’s Medical Assistance program, the Revenue Department estimates that, for tax year 2025, approximately 16,160 returns (about 0.5% of all returns) could have an increase in tax, if federal Medicaid funding is reduced. The amount of the increase would depend on the tax rate.

Rep. Patti Anderson (R-Dellwood) defended the federal government’s cuts.

“It would be about a 13% cut at the state level,” she said. “They have to do something about all the fraud.”

“Show me someone, anyone, who believes we have $880 billion in Medicaid fraud,” Gomez replied.

While Rep. Mike Wiener (R-Long Prairie) said that he thought such a law would result in wealthier Minnesotans moving to other states, Rep. Greg Davids (R-Preston), a committee co-chair, said that the bill’s fifth-tier parameters are too ill-defined, concluding, “This is going nowhere.”

The Senate voted Friday to advance a Republican-led stopgap measure to keep the government funded ahead of a midnight deadline, following days of consternation from Senate Democrats over an uncomfortable choice — to allow the GOP bill to pass or let the government shut down.

In a 62 to 38 vote, 10 Democrats joined with all but one Republican to move forward on the measure in a key step toward passage. The Friday afternoon vote ended debate, and after reaching a time agreement, the vote on final passage is expected later in the evening.

Minnesota senators Tina Smith (D) and Amy Klobuchar (D) did not follow their leader’s vote, however, and opposed ending debate.

“I support the thirty-day short-term extension to keep the government open to complete bipartisan negotiations on the actual budget,” Klobuchar said Friday. “I will not support the partisan proposal in part because it does not include Minnesota infrastructure projects, undercuts medical care and research, and makes major changes to reduce veterans’ health care, including for those exposed to burn pits.”

The vote came after Senate Minority Leader Chuck Schumer initially signaled that his caucus would fight back against the partisan measure to keep the government funded through September. But instead he reluctantly pledged on Thursday to advance it, delivering one of the Democratic votes necessary to propel it to passage. He warned of the larger threat a shutdown would pose for the American people.

“For sure, the Republican bill is a terrible option,” the New York Democrat said, calling the bill “deeply partisan” and urging that “it doesn’t address far too many of this country’s needs. But I believe allowing Donald Trump to take even much more power via a government shutdown is a far worse option.”

On Tuesday, the House passed the measure, which increases defense spending while decreasing non-defense spending below 2024 levels. Republicans have praised additional funding in the measure for programs like nutrition assistance for women, infants and children, while Democrats have railed against cuts to medical research and housing programs — and more than $1 billion in cuts to D.C.’s local government spending.

Minnesota Rep. Tom Emmer, a leading Republican, called the Continuing Resolution (CR) “responsible” and said it would “keep the government open and working for the American people.”

MN Veterans Protest Outside GOP Offices in Edina

Avoiding a government shutdown means no furloughed employees, delayed paychecks or suspension of government services, however a group of Minnesota veterans staged a protest on Friday over actions by the Trump administration aimed at cutting the size and scope of the federal government, including the Department of Veterans Affairs.

“I think it’s important for veterans to show we’re everywhere,” Keith Elinson, a retired Navy commander from Eagan, told WCCO News. “The firing of people, without cause. The cutting off of funds to organizations that provide aid. The GOP and Trump’s stance towards Russia and Ukraine.

Rick Engh, a Vietnam veteran from Plymouth, wore his uniform to the protest; he said it was the first time he’s worn it in 50 years.

“My daughter said that if I could still fit it to it, I should. I am proud of this,” he quipped. “I’m a veteran. I’m proud of it, and yet I can be opposed to Trump and what he’s doing.”