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Stalled grocery talks to resume
The union and chains are expected to meet April 16. A strike seems unlikely anytime soon.
By Jerry Hirsch, Times Staff Writer
April 6, 2007

Talks between Southern California's three major supermarket chains and a union representing grocery workers, which were abruptly halted Wednesday, are expected to resume in a little more than a week.

United Food and Commercial Workers union representatives said Thursday that they left the negotiating table after Albertsons, Ralphs and Vons declared they would lock out union workers if any one of the companies was struck.

"We walked out in protest," said Rick Icaza, president of UFCW Local 770 in Los Angeles. "But we are going back. We want to settle this."

Negotiation details are under a news blackout at the behest of a federal mediator, but individuals familiar with the situation said the two sides were scheduled to meet again April 16.

Although the verbal barbs being traded by the two sides make it seem as though Southern California is careening toward a strike like the one that turned grocery shopping into chaos more than three years ago, any potential work stoppage is weeks away.

Here's a look at the likelihood of another strike and lockout and the issues behind the negotiations.

What is the earliest day another strike or lockout could occur?

Technically, the region could see a strike or lockout take shape April 13. The timing is dictated by prior contract extension agreements. But with talks resuming April 16, a strike is unlikely anytime in the next two weeks.

Union members have authorized a strike against Albertsons, but the UFCW has not set a date. The union also hasn't made any effort to take strike authorization votes against Ralphs and Vons.

What happened in the last strike?

When the UFCW struck Vons on Oct. 11, 2003, Albertsons and Ralphs refused to let their unionized workforce enter their stores. The companies remained open with the help of management and replacement workers.

The 141-day strike created jammed parking lots and long checkout lines at retailers that were unaffected by the labor dispute, including Stater Bros. and Trader Joe's.

What's the likelihood of a strike happening again?

At this point, everyone from UFCW activists to Wall Street analysts are downplaying the chances of a strike.

Goldman Sachs analyst John Heinbockel points out that there have never been back-to-back strikes "in the annals of food retail negotiations…. The appetite for a fight usually isn't there."

Any strike, if it happened, is a long way off, said Michael Shimpock of SG&A Campaigns, a Pasadena media and political consulting firm hired by the United Food and Commercial Workers union to speak about the talks.

The employers said they remained "committed to working toward a peaceful settlement." But one industry executive placed the chances of a strike at 60%.

What's this all about?

Basically, wages and benefits, especially health insurance for workers.

The current contract, signed three years ago after the bitter 141-day strike and lockout, divided the unionized supermarket workforce into two groups.

Veteran workers received small wage bonuses and kept favorable health benefits. But the deal created a second tier of workers: people hired after the contract was signed.

These workers receive lower wages and benefits. For example, a new hire must wait at least 12 months, sometimes longer, to become eligible for health insurance. The waiting period for family coverage is 30 months.

The 65,000-member workforce is split almost evenly between those two groups. The union wants to get a better health plan for the new workers and is pushing for a pay scale track that gradually elevates all employees to first-tier benefits.

The employers said they liked the current system because it lowered their labor costs and made them more competitive with discount retailers.

What's different from last time around?

Replacement workers. In 2003, the chains prepared for the work stoppage by hiring substitute workers starting six weeks in advance.

There's no indication they are doing that now. Moreover, the grocers say they are not stocking up on goods in anticipation of a rush by strike-fearing consumers who want to stockpile.

What's the same from last time around?

The mutual-aid agreement among Albertsons, Ralphs and Vons. The agreement calls for the lockout of employees from the three chains within 48 hours of a strike against any one of the companies.

The agreement also calls for the chains to provide financial assistance to any of the companies struck by the union.

Kroger Co., which owns Ralphs and the Food 4 Less chain in Southern California, paid a combined $146 million to Vons and Albertsons during the last work stoppage, according to the California attorney general's office.

That money helped those companies to hold out during the long work stoppage, according to union officials and labor analysts.

But the deal might not have been legal. The state has sued the chains, alleging that the agreement violated federal antitrust laws. The employers insist that this type of agreement is legal. The companies said this latest pact did not allow for revenue or profit sharing, but they declined to disclose the terms of the financial assistance.

Should I begin stocking up on food and other packaged goods?

That's a choice you have to make based on your budget and cupboard space. But consider this: Combined, Albertsons, Ralphs and Vons sell about half the groceries bought every year in Southern California.

Still, there are more choices now than three years ago. Most Targets sell packaged food and even have a frozen food section.

Many drug chains and convenience stores also sell packaged goods and have refrigerated milk cases. There's always Costco, Wal-Mart, Trader Joe's and Stater Bros., stores that were jammed during the last work stoppage.

How many stores might be involved in the work stoppage?

More than 65,000 members of the UFCW work at a combined 785 Albertsons, Vons and Ralphs stores from Bakersfield to the Mexican border.

Vons has 274 stores, Ralphs has 262 and Albertsons has 249.

Two other local chains, Stater Bros. and Gelson's, which together control about 12% to 15% of the grocery market, signed labor agreements this year and would not be struck.

http://www.latimes.com/business/la-fi-groc...2&cset=true
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South state supermarket talks break down
East Bay Business Times - 9:41 AM PDT Friday, April 6, 2007
by David Goll

Blaming the fact that three major supermarket chains signed a mutual-aid pact earlier this week, leaders of seven United Food and Commercial Workers unions in Southern California have broken off contract negotiations.

One of the companies involved is Pleasanton-based Safeway Inc., which operates 303 Vons stores across Central and Southern California. Officials of Safeway and The Kroger Co., which owns the Ralphs chain, and SuperValu Inc., which operates Albertsons stores in the region, said if union workers strike against one of the chains, the other two will lock out their union employees.

Albertsons employees have already voted to authorize a strike against that company if contract talks fail.

The situation is reminiscent of October 2003, when union employees walked out of Safeway's Vons stores, prompting a lockout of union workers at Ralphs and Albertsons. The resulting strike dragged on for nearly five months, making it the longest supermarket strike in U.S. History.

"The supermarkets are up to their old tricks," Shaun Bailey, UFCW International vice president and Region 8 director, said in a statement.

"This pact fits the same pattern of their actions three years ago when they forced UFCW members and their families into the streets and disrupted shoppers for nearly five months in a grab to end meaningful health care coverage for employees."

Not surprisingly, company officials have a different view.

"We signed this agreement to protect our companies, our customers and our employees' jobs in the event of a union strike," Adena Tessler, a spokeswoman for the three supermarket chains, said in a statement. "The decision to sign the agreement was made only after, and in response to, the unions' strike threat. While none of us want a work stoppage, the unions' recent strike authorization and threats of future strike votes must be taken seriously."

Though the contract expired March 5, both sides extended the talks until April 9.

http://www.bizjournals.com/eastbay/stories...tml?t=printable
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UFCW Local 135 radio ad
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4/4/07
QUOTE
The Employers showed its disrespect for you and their unwillingness to bargain in good faith, when today, during negotiations and with no notice to union negotiators, the markets released to the press their intention to punish all of you by locking out all Ralphs, Vons and Albertsons members IF a limited strike is called against any of the markets.

They also stated they intended to repeat their potentially illegal profit sharing scheme, a plan that resulted in federal anti trust charges and Ralphs being placed on 3 years probation for identity fraud and illegally hiring locked out workers.

We want to assure you that you union’s top priority is getting a fair agreement at the bargaining table. We’ve been patient and thought we were making some progress.

But the Employers instead chose to ambush you and your union, and once again refuse to compromise on a fair contract, like Stater Bros and Gelsons Markets did.

Ralphs, Vons and Albertsons once again proved they are more concerned with their profits than their employees or customers.

We MUST stand up to the employers and not allow these threats and intimidation to stand. Get involved. Volunteer to talk to your fellow workers and customers. Don’t let management intimidate and threaten you. Demand respect and a fair contract.


http://www.ufcw135.org/employers_showed_its_disresp.htm
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Saturday, April 7, 2007
Grocery talks to resume April 16
Return to the bargaining table eases fears of a work stoppage.
By ANDREW GALVIN
The Orange County Register

Talks between the three big supermarket chains and the grocery workers union will resume April 16, both sides said Friday, bolstering hopes that a work stoppage can be avoided.

Earlier talks between the United Food and Commercial Workers union and Albertsons, Ralphs and Vons ended Wednesday.

At the time, with no new talks scheduled, it looked as though the chains and the union might be heading toward a repeat of the strike and lockout that idled more than 60,000 workers across Southern California three years ago. That stoppage lasted 20 weeks and ended with the union accepting contract terms that it is now seeking to change.

A contract extension is scheduled to expire on Monday, after which it will renew automatically each day, although either side can terminate it with 72 hours notice.

With both sides committing to return to the bargaining table, fears of a strike or lockout that would disrupt the lives of workers – and the routines of shoppers – have eased a bit.

The chains said Wednesday that if the union strikes against any one of them, the other two would lock out their union workers. UFCW leaders have obtained authorization from members to call a strike against Albertsons if they deem it necessary.

The union wants the employers to agree to end a two-tier wage and benefit system under which new hires can't achieve the same compensation as longer-term employees.

http://www.ocregister.com/ocregister/money...cle_1644768.php
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UFCW Negotiations Update as of 04/05/2007
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Paper Pulls Union Ads That Targeted Supermarket

By Jennifer Saba

Published: April 06, 2007 2:00 PM ET

NEW YORK An Arizona newspaper has been accused of censoring ads that criticize a grocery store chain.

The labor union UFCW Local 99, which represents union members of Food City grocery stores, arranged to take out a full-page black and white ad in The Yuma Daily Sun. The ads were scheduled to run three days, March 30, 31, and April 1 corresponding with the city's celebration of the late labor leader Cesar Chavez.

The ad featured three Food City workers who wanted their grievances about the store to be heard. "They are really upset at the way they have been treated," said Katy Giglio, a spokeswoman for UFCW Local 99. The union's Web site on the matter, www.foodcitytruthwatch.com, notes that workers are concerned about their wages.

The ad was titled "Shame on You Food City" and brought to light Food City's involvement during the city's weekend celebration of Cesar Chavez. Food City sponsored the stage and food booths at the festival honoring Chavez. "Cesar Chavez stood for the working people," Nancy Mejias, a Food City cashier, said in a statement. "The ad represented our beliefs, we simply want dignity and respect."

The ad ran in the Daily Sun's March 31 edition. But late Friday evening, Giglio said the union received a call from the Daily Sun's advertising director who informed the union the ad had been pulled. When Giglio asked why, she was told the publisher had a right to decline ads.

Daily Sun Publisher Julie Moreno explained to E&P today that "concerns were raised" about the ad later in the day of March 31. She declined to comment on what those concerns were. She said the paper made a conservative decision and decided to pull the ads that were supposed to run in the Saturday and Sunday editions until further considerations were studied.

Upon further reflection, the paper decided the ads could run and extended an offer to UFCW. "We declined because the events are already over with," said Giglio.

The paper is refunding the union. Giglio said UFCW paid a little under $8,000 for the media buy.

"We really do respect the Sun," said Giglio. "It's frustrating it couldn't run its full course."

The Daily Sun has no set advertising policies but when an ad is called into question it's decided on a case-by-case basis, said Moreno. She also said that Food City is not a regular advertiser with the Daily Sun.

http://www.editorandpublisher.com/eandp/ne...t_id=1003568474
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Apr 06,2007
Grocers to unite if union goes on strike
by Penni Crabtree

In a move that signals escalating tensions, the three major Southern California grocers agreed Wednesday to lock out union employees if a strike is called against any one of the chains.

The threatened action by Albertsons, Ralphs and Vons, which are in contract talks with seven locals of the United Food and Commercial Workers, comes a week after union leaders obtained authorization from grocery workers to call a strike against Albertsons.

The grocery chains' act, close on the heels of the union's strike authorization vote, sounds an uneasy echo of the failed negotiations that led to a 4 1/2-month strike and lockout in 2003-04.

That bitter dispute idled 59,000 Southern California grocery workers and cost the grocery chains an estimated $2 billion.

Labor contracts that cover 65,000 workers at the chains' 785 stores from San Diego to San Luis Obispo and Bakersfield expire Monday after previously being extended. The contract can be extended further on a day-to-day basis, and either side must give 72 hours' notice to cancel the contract. Only then could union officials call for a strike.

One labor expert said Wednesday's maneuver by the grocers and the union's strike threat are part "saber rattling" but also indicate a "deep divide" in the contract negotiations.

"A game of chicken is dangerous when the stakes are this high," said Harley Shaiken, a University of California Berkeley professor who specializes in labor issues. "Obviously, the companies are taking a hard public line to send a message to the union, but they hardly can be looking forward to a work stoppage, either.

"The union is signaling that they are determined and able to strike if necessary, but they want to avert it if at all possible," Shaiken said. "Everyone knows how difficult a strike would be."

The union and the three grocers are trying to negotiate a new contract through a federal mediator. The key issues are health benefits, wages and a two-tier system imposed by the current contract, which gives new hires significantly lower wages and benefits.

Adena Tessler, a spokeswoman for the grocery companies, said the lockout agreement is a response to the unions' attempt to "pressure one company to agree to uncompetitive contract provisions and gain significant bargaining leverage against the other companies."

"The three companies have no choice but to respond with their own measures," Tessler said. "The companies believe that this agreement is a necessary defensive measure designed to restore balance to the negotiation process."

Union officials temporarily walked away from contract talks Wednesday after the three chains announced the lockout agreement, but they will resume negotiations at a later, unspecified date.

Mike Shimpock, a spokesman for the seven UFCW locals, said the grocers' pact is "illegal," referring to ongoing litigation targeting a similar agreement in the 2003-04 lockout.

Three years ago, California's then-Attorney General Bill Lockyer sued Ralphs, Albertsons and Vons and alleged that their response to the earlier strike violated antitrust laws.

Lockyer charged that a mutual strike assistance agreement the grocers entered into contained anti-competitive profit-sharing components that drove prices higher for consumers.

Attorney General Jerry Brown, who was elected in November as Lockyer left office, is still pursuing the case, which is slated to go to trial in January.

Brown spokesman Gareth Lacy declined to comment on the current labor dispute except to say, "We're encouraging both sides to negotiate in good faith."

Shimpock said the lockout agreement is evidence that the grocery companies are unwilling to negotiate fairly.

"This is a very foolish and risky escalation on the part of the markets," Shimpock said. "They are threatening to punish and lock out employees at Ralphs and Vons, two markets that haven't even considered a strike authorization vote, and deny consumers shopping options.

"If they really wanted to protect their customers and employees, then they would have done what Stater Bros. and Gelson's markets did: negotiate a fair contract with their employees on time," he added. "We do not want a strike; we want a fair contract. Our members have not had a wage increase since 2002, yet Ralphs, Vons and Albertsons are each averaging nearly $3 billion in profits."

Reaction from consumers Wednesday to the latest round of hardball tactics was mixed.

During the 20-week grocery strike in 2003 and 2004, Irma Robinson said, she honored the picket lines, shopping at other stores such as Trader Joe's.

"It was an inconvenience, but I feel that people have the right to strike," said Robinson, a Pasadena resident who was shopping Wednesday at a Ralphs in Carlsbad while visiting the area. "They have a living to earn."

When the strike ended, Robinson continued to shop at alternative grocery stores for a time before drifting back to her neighborhood supermarket.

If grocery workers picket this year, however, Robinson said she will again shop elsewhere during the strike.

But David and Lorraine Roderick, retired educators shopping Wednesday at a Vons in Carlsbad, said they didn't honor picket lines in the earlier strike and wouldn't this time if a strike occurs.

"I think it's terrible that it is so easy for them to go on strike," said Lorraine Roderick. "I just don't believe in strikes."

Correspondents Dean Calbreath and Mike Freeman contributed to this report.

http://www.bendweekly.com/Business/4419.html
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Union Federation To Honor Picket Lines If Grocery Workers Strike
LA County Federation Of Labor Has 800,000 Members

POSTED: 12:34 pm PDT April 9, 2007
UPDATED: 12:39 pm PDT April 9, 2007
LOS ANGELES -- A federation of labor unions said Monday that its members would honor picket lines should thousands of Southern California grocery workers go on strike or be locked out over a contract dispute with three national supermarket chains.

The Los Angeles County Federation of Labor said its more than 800,000 members would also mobilize for demonstrations, boycotts and food drives to aid striking grocery workers.

"Workers throughout Los Angeles County have made a commitment today, to stand in solidarity with our grocery workers in their fight to make their jobs, good middle-class jobs again," said Maria Elena Durazo, the federation's executive secretary-treasurer.

The organization is home to more than 300 unions, including the Screen Actors Guild, the Teamsters, the Service Employees International Union, and the American Federation of Teachers, among others.

Contract talks between the supermarket chains -- Supervalu Inc.'s Albertsons, Kroger Co.'s Ralphs and Safeway Inc.'s Vons and Pavilions -- and their employees' union, the United Food and Commercial Workers, have been taking place since January.

A single contract covering 65,000 workers at the markets' 785 stores from San Luis Obispo and Bakersfield south to San Diego expired March 5. That deal has been extended twice, with the latest extension due to expire at the end of the day Monday. It then renews automatically on a daily basis until any of the parties opts out.

A mutual aid pact struck between the grocery chains last week raised the prospect that a strike against any of the markets would trigger a lockout by the rest of the grocers.

On Wednesday, union negotiators broke off talks with the companies, citing the chains' pact.

The deal calls for the chains to lock out employees within 48 hours if the union orders a selective strike against one of the chains. The companies also agreed to provide financial assistance to chains with employees who walk out.

Albertsons employees voted overwhelmingly the previous week to give union leaders the authority to call a strike against the chain.

Negotiations were scheduled to resume April 16.

http://www.nbc4.tv/employment/11590545/detail.html
Marine
I won't be shopping Albertson's unless they deal fair and square with the Union.

When the call to strike is issued in California I'll treat Albertson's here in Texas as if a picket line is up here too.
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Grocery contract negotiations resume
By Jerry Hirsch, Times Staff Writer
April 17, 2007

Southern California's three largest supermarket chains and the grocery workers union resumed talks Monday with both sides urging harmony.

Negotiations broke down April 4 amid escalating tensions over the threat of a strike by the union and an employee lockout by the companies.

Albertsons, Ralphs and Vons are negotiating with the union to craft a new agreement for its 65,000 workers. It will replace a contract that originally was set to expire March 5, but has been extended twice.

"This is a test week; we'll see what happens. Our top priority is reaching an agreement at the table," said Michael Shimpock of SG&A Campaigns, a Pasadena media and political consulting firm hired by the United Food and Commercial Workers union to speak about the negotiations.

Both sides are trying to avoid a repeat of the bitter labor dispute over salary and health benefits, which paralyzed the industry for nearly five months beginning in October 2003.

Members of the United Food and Commercial Workers union voted last month to strike Albertsons. Labor leaders have not set a date for any job action, saying they want to give negotiations more time.

The grocery chains responded by signing a mutual-aid pact in which they agreed to lockout union employees within 48 hours of a strike against any one of the companies. It also calls for the chains to provide financial assistance to any of the companies struck by the union.

"Negotiations are underway and the companies remain committed to achieving a mutually beneficial contract agreement," said Adena Tessler of the Rogers Group, a Century City public relations firm hired by the grocers.

Meanwhile, UFCW members were speaking in eight U.S. cities Monday to show support for the contract talks. The UFCW said workers were speaking outside of stores and handing out fliers at supermarkets in Oregon, Seattle, Minneapolis, Chicago and Philadelphia.

The UFCW, which represents nearly 1 million industry workers, said more than 400,000 UFCW members were negotiating new contracts this year. A contract between 30,000 workers in Seattle and the three major grocers expires May 5.

http://www.latimes.com/business/la-fi-talk...dlines-business
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QUOTE(Marine @ Apr 11 2007, 07:41 AM) *
I won't be shopping Albertson's unless they deal fair and square with the Union.

When the call to strike is issued in California I'll treat Albertson's here in Texas as if a picket line is up here too.

Thanks Marine,
The strike, if it happens, could go national. -

QUOTE
UFCW National Bargaining Unity Seeks Affordable Health Care, Decent Wages - 04/18/07

By Doug Cunningham

More than 400,000 grocery workers represented by the United Food and Commercial Workers (UFCW) are bargaining for new contracts this year. The UFCW’s Amber Sparks says big supermarket chains are not treating workers with respect as they try to negotiate decent wage and health care benefits in the new contracts.

[Sparks]: “They are not providing affordable health care, not providing a living wage for workers.”

Talks resumed this week between UFCW and three grocery chains in southern California. Sparks says the union is using a national strategy in an effort to have grocery workers rise up together.

[Sparks]: “The strategy has been, for the first time really, that workers are bargaining nationally. And what that means is that they are all realizing that they have this power when they all speak together that is stronger than the companies' power, even these national companies."

In several cities this week the UFCW held solidarity actions as part of its national unity bargaining campaign.

http://www.laborradio.org/node/5726

Audio File
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"What We Do and Don't Deserve"
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Friday, April 20, 2007
Union protesters underscore supermarket stakes
UFCW needs to win concessions from chains to keep members' support.
By ANDREW GALVIN
The Orange County Register

Last week, a handful of supermarket employees staged an unusual protest – picketing against their own union.

The two-hour event, which took place April 13 outside the Buena Park headquarters of United Food and Commercial Workers union Local 324, was organized by Jason Cram, a union member and a nine-year employee of Albertsons. Cram and about half a dozen other union members, plus a similar number of (non-union) friends and family members, held signs that said things like "Strike the union" and "Make the UFCW accountable."

Cram, 25, who said he was a union picket captain three years ago during the 20-week lockout of the UFCW by Albertsons, is worried that the union's leadership will call a strike against his employer.

"We basically got nothing for the strike," Cram said, referring to the 2003-2004 work stoppage, which began when the UFCW struck Vons, prompting Ralphs and Albertsons to lock out union employees. "There's very little reason to think that these companies are going to crack if we go on strike again. That's what I'm worried about."

To be sure, Cram and his fellow protesters are just a tiny fraction of the union local's 23,000 members. Other Albertsons employees say they are prepared to strike if necessary as part of an effort to get concessions from their employer in the current round of contract talks.

Still, the fact that even a small number of union members are publicly voicing discontent underscores the stakes for the UFCW this time around.

Three years ago, exhausted and financially drained by the long strike and lockout, union members voted to accept a contract that imposed steep cuts in wages and health benefits for new hires. Now, more than half the local workers at Albertsons, Ralphs and Vons are on the new, lower tier of wages, which top out at $15.10 an hour, compared to $17.90 an hour for workers on the higher tier. Most of the second-tier workers don't get health insurance through their employer.

Cram and the other protesters complained about the salaries paid to union officials, which are far higher than what the members can earn working in the supermarkets. Greg Conger, the president of Local 324, earned $221,615 last year, according to a union filing with the U.S. Department of Labor. Seven other employees of Local 324 earned more than $100,000, while another 17 took home more than $90,000 in 2006.

By comparison, a union member at the top of the supermarket's "first tier" wage scale would earn $37,232 a year for full-time work. On the second tier, top pay for full-time work would be $31,408.

The union officials' salaries are paid from members' dues, which range from $20.70 to $77.33 per member per month, according to the filing.

Some union members aren't bothered by the officials' salaries.

"I have faith in them because I believe that their sole existence is to advance my interest as a worker," said Javier Ybarra, a 20-year Albertsons employee. Ybarra stopped by the union hall during Cram's protest and got into a discussion with the protesters.

"Negotiating contracts apparently isn't something easy to do," Ybarra said. "In order to represent your interests, you have to be willing to pay some money for that."

Ruth Milkman, director of UCLA's Institute of Industrial Relations, said the disparity between union officials' salaries and workers' wages "is a long-standing problem in the labor movement." The traditional justification for the disparity is that union officials "need to be well paid so that their leaders can stand up and be respected," she said. "It mirrors the corporate world."

Indeed, Greg Conger's compensation pales next to the $7 million earned last year by Steve Burd, the chief executive of Safeway Inc., parent of Vons, according to a company filing with the Securities and Exchange Commission.

Todd Conger, a spokesman for Local 324, said some union officials could earn more if they left for corporate jobs.

"One of the ways we've been able to prevent that is by making the salaries very respectable. … That's why we've been able to have very dedicated people," Conger said.

The union officials' salaries reached their current level because the union for decades was able to win middle-class wages and benefits for members. If the union can't win back some of what it lost three years ago, its ability to pay those salaries could come under pressure.

"I think it would be very hard for the union to accept a continuation of this two-tier system because I think that would signal their eventual downfall," said Kent Wong, director of UCLA's Center for Labor Research and Education.

Or, as Cram put it: "I think it's make or break time for the union."

http://www.ocregister.com/ocregister/money...cle_1663948.php
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Communications Workers of America
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Supermarket Talks Break Down

May 9, 2007

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.

http://www.ufcw324.org/newscomms/050907talks_break_lat.htm

http://www.ufcw324.org/050907update.wmv
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