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California Grocers Walk Out On UFCW Strike Talks

by Alan Fein - Senior Staff Reporter

Laptop Battery California Grocers abruptly ended talks with UFCW union spokespersons late Friday after the Union offered a $350 million concession vs the $1 billion originally asked by owners.

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Laptop Computers December 21, 2003 (AXcess News) San Francisco - Friday negotiations between the California grocers and striking United Food and Commercial Workers International Union (UFCW) ended abruptly when the grocery chains representatives walked out on those talks.As a good faith gesture in resuming talks, the UFCW had announced Friday morning that it would remove picket lines from the California grocers warehouse and distribution centers.

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Laptop Computer The picket lines were to be removed Monday morning but after 12 hours of talks, grocery representatives balked at the union's proposal that would have cut employer funding of worker benefits by between $350 million and $500 million over a three-year contract and ended the discussion abruptly.

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Desktop Computer The Teamsters, who have been in support of striking UFCW members, were working with the United Food and Commercial Warehouse International Union to facilitate an orderly picket at warehouse and distribution centers. Truckers were not crossing those lines.

Notebooks Teamsters President James P. Hoffa said that "The Teamsters will continue to honor picket lines at the retail outlets because our members know that the UFCW's fight is our fight."

Lenovo The strike, which has idled over 70,000 workers in California, began over $1 billion in cuts in health care proposed by Safeway, Albertsons and Krogers.Though store owners acknowledged in a statement that the proposal constituted the "first comprehensive contract proposal since the strike began," they left the 12-hour session without making a counteroffer, exasperating union officials.

Hard Drive According to a Reuters story, union representative Barbara Maynard said, "We came as close as halfway and they didn't make a counterproposal. They clearly aren't interested in negotiations. They're interested in breaking the union and the spirit of the employees."The breakdown in talks came after an 11-day hiatus, during which Federal Mediation and Conciliation Service director Peter Hurtgen met with the sides separately.Representatives of the three chains, in a jointly issued press release, placed the blame for the dispute on the union.

Travelstar "We had hoped the unions would make a realistic offer," the statement read. "Unfortunately, the proposal fell far short."

Gateway Negotiations are not expected to resume until next year.The strike, which had caused Albertsons (NYSE: ABS) to withdraw its earnings guidance on November 13th, continues to cost grocers as stores remain ideal.The three grocery chains have contended that competition from Wal-Mart (NYSE: WMT) is why the grocers want to cut health benefits. But the UFCW isn't buying it.According to the UFCW the reason Wal-Mart spends 40% less than other U.S. corporations on health insurance is that deductibles are triple the norm and run as high as $1,000. Full-time employees must wait six months while part-time employees two years before being eligible and it refuses to pay for flu shots, eye exams, child vaccinations, chiropractic services and numerous other treatments allowed by many other companies. Also, pre existing conditions must wait 12 months before being covered.

Laptop Parts Grocers and the union are also wrestling over pension benefits and pay for new hires, which caused the range of value for the proposal. Among the owners' proposals is a reduction in hourly wages for new hires, which currently average $12.97 an hour, by between $3 and $4.The UFCW claims the owners are attempting to create a "second class" of workers and that new hires would not be eligible for benefits or pension plans.AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking news. If your not a member, consider joining now. Members get the latest business news, commentaries and stock picks delivered right to their in-box.

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