WEST BRIDGWATER, Mass. (AP) – Employees at some Shaw’s Supermarkets are threatening to walk off the job when their contract expires Saturday unless the company backs off plans to cut employee health care benefits.

The Standard-Times of New Bedford reported contract talks with the United Food and Commercial Union Local 791, which began in June, stalled last week over Shaw’s offer on health care. The union said the plan would result in a 27 percent reduction in benefits, and shift thousands of dollars to employee insurance co-pays without increasing wages.

However, Shaw’s said it was offering the 6,400 union members the same medical plans offered to most employees at the stores not represented by Local 791. The union represents about 30 percent of all employees at 39 Shaw’s stores in Massachusetts and Rhode Island.

“The union knows it’s a very competitive market, but Shaw’s has a very strong position in that market,” said Peter Derouen, a spokesman for Local 791. “Given Shaw’s performance and place in the market, we feel their proposals are far too reaching into the pockets of their own workers.”

Shaw’s, owned by Boise, Idaho-based Albertsons Inc., one of the nation’s largest food and drug retailers, said it needs better control of health care costs to remain competitive. It said it currently pays more for health care in Local 791 stores than any of its competitors pay.

For three years, the company has absorbed all cost increases of the union insurance plan, which has shot up by more than 60 percent, according to Shaw’s officials, who say the union is misrepresenting its offer.

“Shaw’s has always treated all our associates fairly and competitively,” said spokesman Terry Donilon. “These negotiations are no exception.”

Derouen said if the two sides are making progress when the deadline approaches, the union would consider extending the contract.

“But we would not entertain an extension if the current set of proposals are still on the table,” he said.

AP-ES-07-29-04 0217EDT