New source of pressure on grocers

In an attempt to provide added leverage to the grocery workers union in contract talks, Los Angeles’ powerful labor movement and its allies among elected officials are exploring ways to use local government to pressure supermarket chains to boost pay and benefits.

The United Food and Commercial Workers International Union is negotiating with Southern California’s three largest supermarket chains -- Albertsons, Ralphs and Vons -- on a new contract to cover about 65,000 workers.

The previous contract, signed three years ago after a 141-day strike and lockout, is considered a poor one by the union because it provides lower wages and benefits to newly hired workers.

Changing the structure of that contract has become a rallying cry in the local labor movement.

Although both sides have emphasized their desire to avoid another work stoppage, elected officials have sought to pressure the stores in recent weeks.

The Los Angeles City Council held a hearing to highlight the lack of major grocery stores in poor areas of the city -- a situation that labor officials and community groups say is an example of “redlining.” The city also has arranged to hire a consultant to study the employment and business practices of grocery stores.

And throughout the region, elected officials are passing resolutions in support of the workers and raising the possibility of challenging the liquor licenses of grocery stores or blocking permits they seek for parking or expansions.

“The markets should be providing good wages and good benefits to people in cities that they get benefits from,” said Long Beach City Councilwoman Bonnie Lowenthal. “When we grant discretionary permits to companies, we need them to be good corporate citizens.”

Adena Tessler of Rogers Group, a Century City public relations firm hired by the major chains to speak about the contract talks, said it was premature to address possible challenges to liquor licenses or other permits, “because we haven’t seen that type of action yet.”

She dismissed the criticism of supermarkets for “redlining” and said that labor leaders “are trying to use that as something to their advantage.”

With a supermarket work stoppage still possible, labor-friendly politicians have shown a determination to use public leverage in union fights.

Among those involved in discussions are labor leaders and researchers at the Los Angeles Alliance for a New Economy, a labor-friendly nonprofit.

The group helped formulate the recent Los Angeles legislation extending the protection of the city’s “living wage” ordinance to workers at airport-area hotels, the site of a union organizing campaign.

Labor relations are governed by federal law, but labor leaders in Los Angeles, many of whom spoke on condition of anonymity because plans are not final, have identified ways that city councils can put pressure on grocery chains.

One key labor leader said there had been a discussion last week of putting forth a Los Angeles ordinance that would set standards on employee healthcare and pay for businesses to meet before the city would support their applications for liquor licenses.

And Michael Shimpock, a Pasadena media consultant hired by the United Food and Commercial Workers to speak about the negotiations, suggested that the union could support legislation similar to New York’s “Fair Share” law, passed in 2005. It requires grocery stores with 35 or more employees to provide about $2.50 in healthcare benefits for each hour an employee works.

“If that’s what needed to make these people be responsible members of the community, then that’s what’s needed,” Shimpock said.

The state grants liquor licenses through the Department of Alcoholic Beverage Control. But a spokesman for the department said that before a license is granted within its boundaries, a city has broad authority to ask that conditions be added to the license.

Steve Veres, a San Fernando city councilman, said he was interested in using his city’s influence over liquor licensing to protect grocery workers.

“One of the aspects of our liquor license ordinance is that we have to ask the question, does the store bring benefit to the community?” he said. “We’re considering the kinds of workplace environments employers are creating in looking at licenses and permits.”

Government officials have used similar approaches to protect the unionized grocery chains by blocking the expansion of Wal-Mart Stores Inc. in Southern California. Lowenthal, the Long Beach city councilwoman, said she had challenged Wal-Mart’s application for a liquor license as part of an effort to keep the giant retailer out of her city.

In Los Angeles, city officials have been willing to make demands of grocery stores. After the supermarket strike and lockout three years ago, the City Council passed an ordinance requiring that workers be retained for at least 90 days when a grocery store changes owners. The chains have contested that law in court.

Asked recently about a possible challenge to liquor licenses or permits, Councilwoman Janice Hahn, sponsor of the “living wage” extension to hotels, smiled and said: “I think this council realizes that it has a lot of potential to effect change.”

For now, most labor backers have stuck to more traditional means, with letters and resolutions of support.

Sen. Barbara Boxer (D-Calif.) sent pointed letters to grocery chain executives this month in which she mentioned that she had found her son Doug’s pay stub from his time as a Lucky supermarket clerk in 1986. Adjusting for inflation, a clerk in the same position as her son today makes $4.86 an hour less than he did, Boxer wrote.

joe.mathews@latimes.com