Kmart Distribution Workers Reject Pay Offer

About 1,600 unionized workers at Kmart Corp.’s four apparel distribution centers have rejected the company’s final contract offer, setting the stage for nationwide labor actions, union officials said. The Union of Needletrades, Industrial and Textile Employees, or UNITE, said workers rejected the offer at distribution centers in Carson; Atlanta; North Bergen, N.J.; and Groveport, Ohio. The centers process and pack apparel orders for Kmart’s 2,122 retail stores across the nation. The union said workers rejected the company’s final offer because it did not address pay inequities between their facilities and Kmart’s hard-goods distribution centers. Hard goods consist of items such as tools. Kmart spokeswoman Shawn Kahle said the retailer still wants to bargain with the union and wants to avoid a strike. Kmart shares lost 13 cents to close at $10.88 on the NYSE.