Southern California Grocery Workers Pave Way For Strike

By Associated Press

LOS ANGELES -- Grocery workers could go on strike as soon as Sunday night in response to inaction on health care benefits, the workers' union said Thursday.

Eight months into contract negotiations, Southern California grocery workers issued a 72-hour notice Thursday night to cancel a contract extension and pave the way for a strike, said Rick Icaza, president of Grocery Workers Union Local 770.

A strike isn't guaranteed for workers at Albertsons, Ralphs and Vons, but cancelling the contract removes the final barrier to a strike.

In separate statements Thursday, all three grocers said they were disappointed in the union's move and they will remain in active negotiations.

"We don't want a strike, and we hope to continue bargaining rather than continue to alarm our associates and our customers," said Albertsons spokeswoman Christie Ly.

Ralphs spokeswoman Kendra Doyel said her company remains committed to reaching an agreement.

Vons spokesman Brian Dowling urged the union to remain focused on the negotiation process, while pledging to do the same.

Contract negotiations are stalled because supermarkets are unwilling to compromise on health care contributions for 62,000 grocery workers, Icaza said.

Ralphs spokeswoman Kendra Doyel has said her company currently pays more than 90 percent of health coverage costs. Ralphs workers hired before 2004 pay nothing toward their premiums and those hired later pay either $7 a week for single coverage or $15 a week for family coverage.

A four-month strike and lockout that began in 2003 cost Ralphs and other grocery chains an estimated $2 billion.

Comments

[tacevad]

09:29 PM on 09/18/2011

Universal medicare for all is the answer to this problem.

[Liset salcedo]

01:12 PM on 09/17/2011

I hate that the true facts are not being reported to the media and it makes the grocery store employees seem like a bunch of spoiled workers. The vast majorities of the workers of course see that they are extremely lucky to have benefits in such an economy. Most have no problem paying the additional $15 a week. However, the contract would be for 3 years. The company is only budgeting enough to cover medical benefits for two years. Meaning that the third year of medical benefits would have to be paid ENTIRELY out of pocket by the workers. Obviously, those working in the grocery stores while they make a descent living, it is nowhere near enough to cover medical coverage completely out of pocket.

[LASteve]

02:32 PM on 09/17/2011

Then just like the rest of us who pay a part of our heath care costs, and see our contribution increase every year, put a bit more in each pay period and extend the solvency period of the heath fund.

In three years, the President's new health care legislation will be changing the landscape of healthcare and the things will be so much better...right?

[Osusuki]

12:55 AM on 09/19/2011

Maybe--if a bunch of conservative judges don't deep six it before then.

[bedsteland]

11:46 AM on 09/17/2011

Careful union people. I remember the last strike so it is too soon for me. I have a masters degree and pay more out of pocket than your employees. Also IF I added my kids the out of pocket would soar to more than $500 a month for PPO @ 90%. You need to think reality in these hard times. My Dad was 770 union for 30 years but this time I might cross that line. Greed is a B A D thing.

[jcolvin325]

07:49 AM on 09/17/2011

If you have something valuable to offer an employer, you will be compensated accordingly. If you have something valuable and relatively unique to offer, you can take your talents to a number of employers and accept the best offer of employment. If you don't have anything valuable to offer, you form a Union

[Osusuki]

01:31 AM on 09/19/2011

And those who don't have anything to contribute to the discussion or the nation complain about unions.

When did it become perfectly okay for corporations to cut wages and benefits, throw out long standing seniority policies, abrogate labor agreements negotiated in good faith, and lay off experienced workers in favor of new workers who cost less even though they can't do the job half as well, just to maintain the almighty bottom line? NEVER.

Where in the constitution or in the Bible does it say there is a God given right or a legal guarantee of a profit for those who couldn't manage their way out of a paper bag? NOWHERE.

And yet somehow coupon clipping investors get to have a dividend EVERY quarter regardless of the status of the economy or their own bad investment strategies. Those who lambast socialism at every opportunity should cease to promote the socialization of risk for the rich, especially when it is coupled with privatization of reward.

[keedyk87]

01:00 AM on 09/17/2011

I think in such cases where unions and corporations can't come to an agreement as a last resort the federal government should step in and moderate objectively and try to help solve the dispute. I say this because either side could be guilty of wanting too much. It's better that than what has happened to our manufacturing sector that went to China and deserted us. All of us have to realize that we are in this together and can't just think of ourselves but also have to look at our effect on the whole society.

[mumi009]

07:45 AM on 09/17/2011

There was at one time a national labor arbitration board to help employers and emplyees negotiate collectve bargaining agreements.

Haven' heard about it in a while. Must have gotten scuttled under Reagan or Bush I or Bush II.

[WhoIsNoOne]

11:37 PM on 09/16/2011

Think of where that $7 or $15 /wk will go.
Currently it flows from the store workers directly into the
local economy.
The more you have employees pay (during profitable times for
Grocery companies), the more you remove from the economy at a
time when it is sorely needed
This is just another way to flow money to the top, where it is not
currently needed, and will do no good to ease the recession

[2ManyQuestions]

09:16 PM on 09/16/2011

More chains need to follow Trader Joe's example. They tend to have great food at low prices while also paying above union wages because they keep inventory low and only carry their own brands. The number of SKUs they carry seems to be less than 10% of most grocery stores. That must be a boon with respect to inventory costs.

[theexperimentisfinished]

08:11 PM on 09/16/2011

good riddance. I hope that the temporary workers are able to collect many paychecks.

[LASteve]

08:04 PM on 09/16/2011

So where is the dialog about a specific what a job is worth in terms of pay and benefits? That is the real truth underlying this potential strike of workers for better pay and benefits. How much is that job worth and how good or bad should the pay be?

What "should" a person that scans your food at the check stand be paid, is it a high skill job that is worthy of high pay, taking great skill and education.

Sadly, no, a majority of supermarket jobs are low skilled, self checkout anyone? But really what should a company pay for this sort of labor, how much as a society are we willing to vote with our feet and our dollars to make employers pay what we think these sorts of jobs pay.

[nomoredead]

09:09 PM on 09/16/2011

http://www.workforce.com/section/recruiting-staffing/feature/fostering-loyal-workforce-trader-joes/

See what Traders Joes think of employee pay...

[banana republican]

08:03 PM on 09/16/2011

It's absolutely unconscionable to expect someone to pay a whopping $15 per week for family health care coverage. I'll be no one else in American pays anywhere near that.

[morris111]

12:12 AM on 09/17/2011

I see what you did there....

[petey64]

07:12 PM on 09/16/2011

C'mon people how many of you out there grew up saying how much you wanted to bag groceries or stock shelves it was always a job that would end when you found or worked at your career, it's hard to feel sorry for people who didn't really go for something bigger.

[theexperimentisfinished]

08:12 PM on 09/16/2011

it takes a lot to scan a bannana

[Winedude]

06:34 PM on 09/16/2011

It's pretty hard to feel sorry for these folks when the unemployment level in California at 12%+. There are going to be no end of workers willing to take these replacement worker positions. Both the employees and the stores lost a lot last time around.
When this happened in 2003, it did some serious damage to the wine biz in California. The industry was just starting to come out of the over supply from the 2000 vintage when no wine was going out the door during the strike. This was a blow that many wineries still are trying to get past. Southern California is the largest market for California wines and most of it is sold in grocery stores (to women). If the buyers are going into the stores, they certainly aren't buying wines. I know that there are no end of wine outlets in So. Cal. but grocery stores do the preponderance of the business.

[FriendofAthena]

06:42 PM on 09/16/2011

Big corporations love the high unemployment levels. It helps them make record profits because people are willing to work for harder for no increase in wages and benefits. Employers can take advantage of people all the while telling them how lucky they are to have any job because there is no end of workers willing to replace them.

[Dead Ted]

06:47 PM on 09/16/2011

These workers are VERY fortunate that they have health care coverage at all. Scanning groceries is not necessarily ivy-league work. They pay MUCH less than the average American for their healthcare. Good luck grocery workers... I hope it's worth the few extra dollars per month you would have to pay.

[DSevere]

01:57 PM on 09/17/2011

Economy is bad, and people have discovered Two Buck Chuck at Trader Joe's. ;)

[nomoredead]

06:13 PM on 09/16/2011

The big issue too is a lot of workers are now working 3-4 days a week.
Could you survive on 24 hrs a week at your job.....

[Robert Nesler]

06:11 PM on 09/16/2011

unionworker1 - I'm not doubting that you are very competent at your job. However, try this- prove it. Collective bargaining is nothing more than a way for those unable to "prove it" to band together and threaten and intimidate to get what they want. The rest of us stand on our on merits, our own abilities, our own strengths and weaknesses. If you truly beleive you are worth it, stand on your own, bargain for yourself, and "prove it". Now is the time to nut up or shut up, my friend.

[Robert Nesler]

05:53 PM on 09/16/2011

I think a major reason this has become such a problem for the grocery workers is unreasonable expectation from kids today. These jobs were never meant to be full-time, career positions. Waving boxes around and listening for a "beep" is NOT a middle-class-family-supporting career.