Grocery Chains Propose 3-Year Contract With Workers

The managements of three grocery chains—Vons/Pavilions, Ralphs and Albertsons—have proposed a new, three-year agreement with their employees following a settlement with the United Food and Commercial Workers, the labor union representing roughly 62,000 grocery workers in Southern California.

The new contract comes a day after a threatened strike by grocery workers was averted, ending an eight-week battle over better health benefits and wages for workers.

Although the details of the agreement have not yet been made public, UFCW president Rick Icaza said Tuesday that he’s optimistic members will approve the agreement reached Monday morning.

Labor Union's Aim

“Our mission was to be able to let our members know they would be able to pay their rent, be able to take their children to the doctor, for them to go to the doctor—and we accomplished that at the same time as preserving the company’s competitive position to be able to make a profit,” Icaza said at a Tuesday news conference held outside the Ralph’s store on Vermont Avenue and 3rd Street.  

UFCW members will be able to read the new agreement and vote for or against its ratification on Friday and Saturday, Icaza said.

Negotiations Were 'A Struggle'

Resolving the issue was "a struggle,” Icaza said, adding that he, the union members, as well as the supermarket chains, are all relieved that a strike has been averted. All sides were grateful that matters did not come to a head as they did in 2003-2004, when a 141-day strike by employees resulted in the loss to the companies of about $2 billion—plus market share.

“The companies were very stubborn” this time around as well, Icaza said. “They wanted to hold onto every last thing they could.” The managements of the grocery chains relented only when they “realized finally that our members were prepared to strike,” Icaza said, adding: “That was exciting because they didn’t believe us”—despite the fact that more than 90 percent of union members throughout Southern California authorized the strike.

Results of the union vote will be announced Saturday about 8 p.m.