DealMonkey
Lifer
Well, that only took 5 months, but at what cost? I really sympathize with the striking workers on principle, but this whole situation has pushed shoppers away to alternative stores. Thanks to both sides in this stubborn grudge-match, the supermarket chains have lost another customer . . . and I still don't think they're equipped to handle competition from the likes of Costco (and eventually Wal-Mart when they rush the CA border with their supadupamega stores).
Supermarket strike settled
Deal ends strike of nearly five months by 60,000 grocery workers at about 900 California stores.
LOS ANGELES (Reuters) - Three major supermarket chains and the union representing some 60,000 striking and locked out grocery workers reached a tentative deal to end the nearly five-month labor dispute, representatives for both sides said.
The agreement, reached late Thursday, was expected to create a second tier of employees who would be paid less than their veteran counterparts.
The pact still needs to be ratified by members of the United Food and Commercial Workers Union. A vote could come as early as Friday or Saturday. It was not immediately clear when unionized clerks would be back on the job.
The labor dispute centered largely on health care costs, with supermarket chains saying they could no longer afford to pay for the benefits without contributions from the workers in the face of competition from non-union megastores like Wal-Mart Stores Inc.
"Strikes and lockouts are always a battle of last resort. The dispute was long and difficult. Many workers lost their homes. Company shareholders lost hundreds of millions of dollars. Shoppers lost the reliable service of their local grocery clerks. Everyone suffered," AFL-CIO official Art Pulaski said in a statement.
At the Vons Pavilions store in the Los Angeles suburb of Long Beach, picketers were relieved at the news but cautious until they had seen specifics of the proposed contract.
"Thank God it's finally over," picket captain Ray Manel said, adding that he was "kind of afraid to see what they settled on."
Kris Henke-Tinoko, a working mother from nearby Anaheim, agreed that most workers were cautious and said none were ready to celebrate: "Its good that its over but if we didn't get anything worthwhile it's no good. I think it's still like we won't believe it until we go back to work"
15 days of intense talks
The settlement comes after 15 days of intense talks between officials for the three chains -- Kroger Co. (KR: Research, Estimates) , Albertson's Inc. (ABS: Research, Estimates) and Safeway Inc. (SWY: Research, Estimates) -- and union leaders, facilitated by a federal mediator.
Several industry executives and analysts said this week that the parties sought to reach a deal before the end of the week following persistent calls from major investors, including the largest U.S. public pension fund, The California Public Employee's Retirement System, or Calpers.
Analysts said the impasse, which lasted through the Thanksgiving and Christmas holiday seasons, is estimated to have cost more than $1 billion in lost sales. Its duration is likely to make it much harder for the three chains to win back customers who defected to rival stores like Whole Foods Market Inc. (WFMI: Research, Estimates) and Costco Wholesale Corp. (COST: Research, Estimates)
Almost 900 stores have been affected by the dispute since workers struck Safeway's Vons and Pavilions chains on Oct. 11, leading Kroger, which owns the Ralph's chain, and Albertson's to lock out their union employees in solidarity.
The grocers argue that rising health care is among expenses that make them less competitive with their non-union rivals such as Wal-Mart, which plans to build some 40 of its massive food-selling supercenters in California in the next four years.
Supermarket strike settled
Deal ends strike of nearly five months by 60,000 grocery workers at about 900 California stores.
LOS ANGELES (Reuters) - Three major supermarket chains and the union representing some 60,000 striking and locked out grocery workers reached a tentative deal to end the nearly five-month labor dispute, representatives for both sides said.
The agreement, reached late Thursday, was expected to create a second tier of employees who would be paid less than their veteran counterparts.
The pact still needs to be ratified by members of the United Food and Commercial Workers Union. A vote could come as early as Friday or Saturday. It was not immediately clear when unionized clerks would be back on the job.
The labor dispute centered largely on health care costs, with supermarket chains saying they could no longer afford to pay for the benefits without contributions from the workers in the face of competition from non-union megastores like Wal-Mart Stores Inc.
"Strikes and lockouts are always a battle of last resort. The dispute was long and difficult. Many workers lost their homes. Company shareholders lost hundreds of millions of dollars. Shoppers lost the reliable service of their local grocery clerks. Everyone suffered," AFL-CIO official Art Pulaski said in a statement.
At the Vons Pavilions store in the Los Angeles suburb of Long Beach, picketers were relieved at the news but cautious until they had seen specifics of the proposed contract.
"Thank God it's finally over," picket captain Ray Manel said, adding that he was "kind of afraid to see what they settled on."
Kris Henke-Tinoko, a working mother from nearby Anaheim, agreed that most workers were cautious and said none were ready to celebrate: "Its good that its over but if we didn't get anything worthwhile it's no good. I think it's still like we won't believe it until we go back to work"
15 days of intense talks
The settlement comes after 15 days of intense talks between officials for the three chains -- Kroger Co. (KR: Research, Estimates) , Albertson's Inc. (ABS: Research, Estimates) and Safeway Inc. (SWY: Research, Estimates) -- and union leaders, facilitated by a federal mediator.
Several industry executives and analysts said this week that the parties sought to reach a deal before the end of the week following persistent calls from major investors, including the largest U.S. public pension fund, The California Public Employee's Retirement System, or Calpers.
Analysts said the impasse, which lasted through the Thanksgiving and Christmas holiday seasons, is estimated to have cost more than $1 billion in lost sales. Its duration is likely to make it much harder for the three chains to win back customers who defected to rival stores like Whole Foods Market Inc. (WFMI: Research, Estimates) and Costco Wholesale Corp. (COST: Research, Estimates)
Almost 900 stores have been affected by the dispute since workers struck Safeway's Vons and Pavilions chains on Oct. 11, leading Kroger, which owns the Ralph's chain, and Albertson's to lock out their union employees in solidarity.
The grocers argue that rising health care is among expenses that make them less competitive with their non-union rivals such as Wal-Mart, which plans to build some 40 of its massive food-selling supercenters in California in the next four years.
