Grocers, Clerks Remain Far Apart

Facing a midnight expiration of their labor contract, negotiators for the major supermarket chains in Southern California and unions representing about 70,000 workers said late Sunday that they remained far apart on wages and benefits.

Union leaders warned that a regionwide strike could start as early as Saturday.

“The only thing that will stop us is a miracle,” said Rick Icaza, president of Local 770 of the United Food and Commercial Workers in Los Angeles, during a break from the talks Sunday afternoon. “I’ve never seen proposals like this,” he added. “It’s apparent to us that they’re asking for a strike.”

Even so, both sides said they would remain at the Anaheim hotel where negotiations were taking place until midnight, when the five-year contract was due to expire.

“We’re still at the table, and we have every intent to try to avoid a work stoppage,” said Terry O’Neal, a spokesman for Kroger Co.’s Ralphs chain.

The contract covers clerks and stockers at hundreds of Vons, Albertsons and Ralphs stores from San Diego to central California, and east to the Nevada and Arizona state lines. Members are scheduled to vote on the latest employer proposal at meetings planned throughout the region on Wednesday, Thursday and Friday.

During those days, union leaders said, workers also will be asked to authorize a walkout.

Key issues are employer- proposed cuts to health-care benefits and pensions and a proposal to create a significantly lower wage and benefit package for new hires. A journeyman clerk now earns $17.90 an hour with fully paid family health insurance and a guaranteed pension.

The region’s last supermarket strike was 25 years ago, when members of the UFCW walked off the job for five days to win wage increases.

Representatives of the three supermarket chains said they had been seeking a fair contract but declined to discuss details. On Sunday, they said there was little common ground at the bargaining table.

“We are very far apart on everything in the bag,” said Sandra Calderon of Vons, which is owned by Pleasanton, Calif.-based Safeway Inc.

Ralphs is owned by Kroger of Cincinnati; Albertson’s Inc. is based in Boise, Idaho. Stater Bros. and Gelson’s have signed an interim agreement and would continue to operate normally if a strike is called.

Vons, Albertsons and Ralphs have been advertising for and training strike replacement workers for the last two weeks. Store managers also have been trained to drive delivery trucks in the event that Teamsters drivers refuse to cross picket lines, UFCW members said.

Meanwhile, employees have made thousands of picket signs and organized teams to keep a round-the-clock presence outside stores. Strike benefits would vary with the hours spent on the picket line, with the maximum of $300 paid for 40 hours.

Presidents of seven UFCW locals told the markets that specific proposals put forward Sunday afternoon were “completely unacceptable,” said Ellen Anreder, speaking for the other locals negotiating alongside 770.

The seven union locals represent workers in supermarkets as far north as Mono County and as far south as Imperial Beach, including all of Los Angeles, Orange and Ventura counties and the Inland Empire.

Citing increasing competition from nonunion retailers such as Costco Wholesale Corp. and Wal-Mart Stores Inc., the chains have warned employees in the last year to expect significant cuts in health and pension benefits. Recent proposals by the markets would have added $1,300 annual premium payments for family insurance, with no wage increases.

At union meetings in Orange County and Los Angeles last week, veteran employees voiced anger and feelings of betrayal over the proposals and said workers were strongly in favor of authorizing a strike.

“After 33 years in the business, this is how they thank me?” said Tibor Sziklay, who works at an Albertsons in Huntington Beach. “These companies are making money. They just want to make more.”

Profits are down this year at both Kroger and Safeway. Although Albertson’s posted higher earnings, it was largely because the chain closed unprofitable stores. Union officials maintain that income for the three chains overall has risen substantially since the last regional contract was signed five years ago.

The contract negotiations have national significance both for the supermarkets and the union. UFCW clerks are working without a contract in New Mexico and are facing potentially difficult negotiations in Arizona.

Southern California represents a huge piece of the supermarket chains’ business, accounting for about 20% of their total sales, according to New York-based retail analyst Burt Flickinger.

He said the contract talks not only would affect the chains’ bottom lines but also would set the tone for future negotiations.