Union breaks off talks with grocers
Union leaders representing 65,000 grocery workers on Tuesday broke off contract talks with Southern California’s largest supermarket chains in a dispute over health insurance.
The breakdown in negotiations may push the United Food and Commercial Workers union and Albertsons, Ralphs and Vons closer to a repeat of the bitter strike and lockout that turned Southern California grocery shopping into disarray for nearly five months beginning in October 2003.
But there were no signs that a strike was imminent.
“What they are proposing is to pay less money for health insurance than they are paying now and to require employees to pay more,” said Rick Icaza, president of UFCW Local 770 in Los Angeles.
He called it “backwards bargaining.”
The grocery companies issued a joint statement in response to the union’s action.
“The union has chosen to walk away from negotiations, ignore the federal mediator’s request for a media blackout and engage in media stunts rather than productive negotiations,” the companies said.
“The issues being discussed in these negotiations are complex,” the companies said. “To be successful, these negotiations require all parties to remain at the table and work toward solutions.”
The talks have been progressing slowly in San Diego under the guidance of a federal mediator who has been shuttling between the seven union locals and the large employers.
This is the second time talks have faltered.
The contract for grocery workers at the big chains was set to expire March 5 but has been extended twice. Either side must give 72 hours’ notice before canceling the contract, and neither side has done so.
Healthcare expenses have been the major sticking point in the negotiations. The supermarket chains are working to contain health and labor expenses so they can remain profitable as they face growing competition.
According to union officials, the supermarkets proposed reducing their contributions to the trust fund that manages the workers’ health insurance plans and increasing the amount of money employees pay.
Union officials have made a priority of improving health benefits for the “second tier,” the roughly 33,000 lower-paid workers hired by the three chains since 2004.
Although the 32,000 veteran grocery workers still don’t pay health insurance premiums and have low medical deductibles and co-payments, new hires must wait 12 to 18 months before they are eligible for health insurance. But the union and the employers have offered few details of what was proceeding in the talks, in deference to a federal mediator’s request for a news blackout.
“The employers are demanding their employees sacrifice even further” only to increase the markets’ already large profits, union spokesman Michael Shimpock said. “If they want to further punish our members, we have nothing left to talk about.”
He added, “It is unacceptable that these three companies, that are giving raises and bonuses in the millions to their CEOs and upper management, would seek to take away even more from their employees -- which haven’t had a raise since 2002.”
Shimpock said union members would continue to work under the terms of the extension while the union examines its options.
Ralphs cashier Chris Zazueta, a 20-year employee at the Sherman Oaks store, said health insurance was a big issue for workers.
“They want us to contribute more and more while they contribute less and less,” he said. “We don’t want to go on strike but we will if provoked.”
A customer at a Vons on Vermont Avenue in Los Angeles said, “I’m really annoyed. These are million-dollar companies and ... they need to give them a decent wage.” If there’s a strike, he said, “I’ll go to Trader Joe’s like I did last time.”
In March, UFCW members voted to give their leadership the power to call a strike against Albertsons. The three chains then said they had signed a mutual-aid pact, agreeing to lock out workers if any one company was struck and agreeing to provide one another some form of undisclosed “financial assistance.”
The talks have been moving slowly ever since, focusing mainly on the health benefits. The two sides have yet to discuss wages.
Times staff writer Ronald D. White contributed to this report.
