Grocery Workers Gear Up for Possible Strike

Beverly Hills - Representatives from three supermarket chains and the union representing 62,000 grocery store clerks held contract negotiations early today to avoid another supermarket strike in Southern California.
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Labor Economist, and professor at Pepperdine University, Dr. David Smith phoned into GDLA on Monday for a discussion on the grocery talks... Watch the discussion and Bob Decastro's video report in the media player.
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"They really are looking at every possibility," said Todd Conger, spokesman for United Food and Commercial Workers Union Local 324 in Buena Park. "We really don't want to strike."

Conger said supermarket jobs have been "good middle-class jobs," but the big three chains are trying to make them "Burger King jobs.

"It's about them absolutely gutting the health insurance plans and increasing the premiums and claiming the issue is over a couple of dollars," he said.

The union's Local 770, which represents 30,000 store clerks and other types of employees in Los Angeles County, warned on its website that "if the employers refuse to adequately fund healthcare, we will be forced to walk out and call a strike. If there is meaningful progress, we will continue to negotiate."

In a 7 a.m. update today, Local 770 reported that the parties are "still negotiating" and urged grocery clerks to stay on the job until told otherwise by a union representative.

Union representatives and representatives for Albertsons, Ralphs and Vons met at an undisclosed location Sunday while shop stewards passed out picket signs. A union spokesman said at the time that no progress had been made.

Clerks at Ralphs and Vons supermarkets in Santa Monica said the two chains had not reduced their deliveries of fresh baked goods, produce, milk and meat to the stores. Speaking on condition of anonymity, they said the fresh deliveries of perishables may indicate that management at the Kroger Co. and Safeway, which own Ralphs and Vons/Pavilions, respectively, are not anticipating closing their stores.

"We've heard that, and I think that does mean something," said Local 770 spokesman Mike Shimpock. "And if they start to move in the negotiations, we intend to stay at the table" and not call a strike, he said.

Union locals from Santa Maria to the Mexican border served notice at 7:10 p.m. Thursday that workers would walk off their jobs Sunday night if they did not see movement from the national chains. The deadline was allowed to lapse.

Health insurance benefits are a major point of contention, with the company offering an insurance package that union officials say would run out of money in 16 months. Under the most recent offer, workers would pay about $36 per month for individual health insurance, or $92 per month for family coverage, but the company contribution to health care costs has not been announced. Negotiators are also reported to be far apart on pay rates.

"They're sitting on their piles of cash, and they're throwing us quarters," Shimpock told City News Service. The union claims the three chains made $3 billion in profits last year and distributed $500 million to their shareholders.

Ralphs has said it would close its stores if a strike is closed, but Vons has vowed to stay open with replacement workers and management.

Christie Ly, a spokeswoman for Albertsons, said the number of stores the Minnesota-based chain closes in a strike would depend on management's ability to "spread our resources to maintain a high level of customer service. We intend for most of our stores to be open."

Unions held a candlelight vigil Sunday night outside a Pavilions store in Beverly Hills "to show the market corporations their moral obligation to bring this conflict to a fair resolution," said Local 770 President Rick Icaza.

During a 141-day lockout in 2003-04, the stores hired temporary workers, and some of the chains were fined for rehiring regular employees under aliases. The replacement workers all lost their jobs when a new contract was signed, and the lockout cost the stores an estimated $1.5 billion.

The chains are now in a tighter competitive situation then they were earlier in the decade because of the advent of specialty food stores and the entry of major discounters, such as Wal-Mart and Target, into the grocery business.