Five employees at a Dollar General store in Barkhamsted, Connecticut, are taking a stand against the national retailer, voting next Friday on whether to be represented by a union.
Angry about wages, paid time off and other issues, the store's nonmanagement workforce - down from six a week ago when one worker says he was fired - are among the first to seek a union at Dollar General, a 46-state chain of nearly 17,700 stores that boosted sales and profit during the pandemic.
"We're all scared of losing our jobs," said Shellie Person, an assistant manager who began as a part-time sales associate a year and a half ago. "They're taking us one by one in a room to tell us how bad the union is. They're harassing us."
Dollar General Corp., based in Goodlettsville, Tennessee, said in an emailed statement it's providing "accurate, factual information" about unions and its perspective on why organized labor is not in the best interests of its employees.
"Regardless of the outcome of this petition, we will continue to strive to provide a work environment that is built on trust, respect and opportunity for all employees," the company said.
Workers last month contacted the United Food and Commercial Workers Union Local 371 in Westport. With such a small workforce that would be represented, the union made quick work of winning support in two days and getting an election scheduled by the National Labor Relations Board.
Pay remains stuck at Connecticut's minimum wage of $13 an hour with no holiday pay or bonuses, Person said. Other issues involve accusations of a mishandled sexual harassment case, ignored complaints about managers and the employee dismissal that co-workers say was due to his union support, she said.
In an email, Dollar General responded by saying it disagrees with the "allegations contained in the complaint filed by our former Barkhamsted employee, including the allegation of retaliation."
Dollar General has faced employee resistance before. Workers at a New Jersey Dollar General tried unsuccessfully in April 2018 to organize a union, and a Maine Dollar General store shut briefly last May when staffers quit to protest their hours and pay.
The Barkhamsted workers are up against a powerful adversary. Dollar General posted $33.7 billion in sales last year, up nearly 22% from the previous year. Profit of $2.7 billion was an increase of 55%. The company, with a market value of nearly $49 billion, said in January when it released its 2020 financial results that consumer behavior driven by COVID-19 "had a significant positive effect" on sales.
With its emphasis on low-cost food, snacks, health and beauty items, cleaning supplies, apparel, housewares, paper products and other items, Dollar General was classified as essential during the pandemic and remained open when other retailers were shut. It's popular with low-income customers who swelled in number as a result of layoffs and furloughs prompted by COVID-19.
Dollar General has developed an effective low-cost business model that Brian Yarbrough, a consumer research analyst at Edward Jones, describes as "pretty bare bones."
"They build stores very cheap," he said. "When you go in, it's not, 'Wow, you're with a beautiful store and beautiful displays.'"
Dollar General says its stores are within 5 miles of 75% of the U.S. population and claims smaller markets that are not in the business model of larger rivals such as Walmart, Yarbrough said.
The chain, which employs 157,000 workers, saves money by staffing stores with few employees, he said. It's "behind the curve" on pay, particularly as other retailers boost compensation that exceeds the minimum wage, he said.
In addition, rural, small town locations often leave workers with few job choices, he said.
Dollar General doesn't have to compete for labor, Yarbrough said.
"It can run a model where the hourly wage is lower than other national players," he said.
Chief Operating Officer Jeff Owen said employees have opportunities to "grow their career" at Dollar General. He told industry analysts on a conference call in August discussing second-quarter financial results that more than 75% of its retail workers at or above the lead sales associate position were promoted from within the ranks. He credited a "robust internal promotion pipeline in staffing."
Person said that working at the Barkhamsted Dollar General was once stress-free.
"It was the type of job where you can't wait to go to work in the morning," she said.
It deteriorated with an accusation of sexual harassment, a response by the company she said was tardy and other problems that led to the union drive and management's reaction.
"We want our voice heard," Person said.