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Grocery workers 3rd day strike san diego { October 14 2003 } Original Source Link: (May no longer be active)
http://www.signonsandiego.com/news/state/20031014-9999_1n14strike.htmlhttp://www.signonsandiego.com/news/state/20031014-9999_1n14strike.html
No progress seen in grocery strike
Standoff moves into 3rd day as workers walk picket lines
By Frank Green
UNION-TRIBUNE STAFF WRITER
October 14, 2003
Grocery workers will walk the picket lines in San Diego County for a third day today, with no sign of a resolution of their dispute with Southern California's three major supermarket chains.
Officials on both sides said they do not expect a quick resumption of negotiations, which stalled over the weekend after failing to yield a compromise on health-care costs and other issues.
Tensions occasionally escalated outside Vons, Albertsons and Ralphs stores yesterday as the chains' stores remained open with managers and replacement workers filling in during the walkout.
There were no reports of major incidents.
Meanwhile, about 3,000 grocery workers in West Virginia, Ohio and Kentucky voted to strike Kroger Co., the parent of Ralphs, as chains across the country take an increasingly hard line on costs.
Mickey Kasparian, president of United Food and Commercial Workers Local 135 in San Diego County, said the chains are moving against the union because of greed, not competitive pressures.
"We let them off the hook when the economy was good and now when things get a little worse, they want to decimate our gains," Kasparian said.
But Wall Street was cheering the supermarkets' tactics, because investors have pushed the chains to cut costs to compete with the grocery divisions of retail giants such as Wal-Mart and Target.
Analysts say the companies face tough competition from Wal-Mart Supercenters, which pay clerks about $10 an hour compared with the $17.90 senior checkers earned here under the expired contract.
The strike "is a no-win situation for the union They can't win this," said George Whalin, president of Retail Management Consultants in San Marcos. He noted that prices at traditional unionized supermarket chains are higher than at nonunion grocery stores because of the disparity in corporate costs.
Nonetheless, some analysts had expected shares of Albertsons, Kroger and Vons' parent company, Safeway Inc., to drop yesterday, because even a short strike usually takes away some market share.
But shares of Cincinnati-based Kroger rose 4 cents to close at $19.26, while the other two companies' shares fell slightly.
Shares of Boise, Idaho-based Albertsons dipped 16 cents to $20.81, and shares of Pleasanton-based Safeway declined 25 cents to $23.58.
All three stocks have outperformed the rest of the market as labor discussions intensified.
Safeway shares are up 17 percent over the past three months, Kroger 15 percent and Albertsons 10 percent, while the Standard & Poor's 500 has risen 5 percent in that period.
"Employers are trying to draw a line in the sand," said Andrew Wolf, an analyst for BB&T Capital Markets in Smithfield, Va. "We have out-of-control health-care costs and they simply cannot afford the current benefits structure."
The United Food and Commercial Workers called a strike against Vons Saturday night after marathon negotiating sessions failed to push the parties closer together on such contentious issues as health-care costs, pension benefits and a proposed two-tier pay system that the union said would hurt new hires.
Albertsons and Ralphs then announced they would lock out their employees under an agreement by the three grocers to stand together against the union.
Besides the current regional labor dispute, the union is increasingly coming under fire by other grocery companies across the country.
UFCW Local 655 in eastern Missouri went on strike last week against the Dierburgs, Schnuck and Shop 'n' Save chains. The 15,000-member local decided to strike after the companies tried to win concessions on pay, health care and other issues.
Yesterday, grocery workers at Kroger stores in West Virginia, Ohio and Kentucky voted to strike at midnight last night. The United Food & Commercial Workers Local 400 approved a strike, rejecting the company's contract offer, union officials said.
The union represents about 3,300 workers for the Cincinnati-based chain in 37 stores in West Virginia, five in Ohio and two in Kentucky.
"The proposal doesn't provide enough money to pay for our benefits," said Jim Lowthers, the union president. "They ought to be providing for the families that helped earn that money."
A Kroger spokesman said the company planned to close the stores at midnight yesterday; only its pharmacies will stay open.
Similar grocery contracts are up for negotiation in coming weeks in Arizona and Indiana, but the Southern California strike affects the largest group of workers and is an important market for the chains.
"What happens in Southern California will shape what happens in other areas," said Greg Denier, spokesman for the United Food and Commercial Workers national office. "Southern California is leading the nation in this fight."
Meanwhile, thousands of pickets continued to march yesterday in front of about 860 of the three chains' stores in Southern California.
There were isolated reports throughout the day of pickets harassing Albertsons, Ralphs and Vons shoppers as well as replacement workers at the stores.
"I just saw a consumer walk by and (insult) one of our members, who replied, 'Have a nice day,' " Kasparian said. The union president said he is issuing a memo to strike captains reiterating that pickets be respectful and polite to shoppers.
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The Associated Press and Bloomberg News contributed to this report.
Frank Green: (619) 293-1233; frank.green@uniontrib.com
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