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Top California grocers hobbled by strike, lockout
Reuters ^ | 10-12-03

Posted on 10/12/2003 1:22:30 PM PDT by Brian S

Reuters, 10.12.03, 2:16 PM ET By Kevin Krolicki

LOS ANGELES (Reuters) - The union representing some 70,000 Southern California grocery workers called a strike against Safeway Inc.'s Vons and two rival supermarket chains responded Sunday by locking out union workers.

Picket lines organized by the United Food and Commercial Workers Union formed at Vons across from Los Angeles to San Diego, one of the nation's most populous regions and a key market for the grocery chains.

In response to the Vons strike, Albertsons Inc. and Kroger Co.'s Ralphs, which are covered by the same master contract, locked out union workers from the first shift on Sunday, a union spokeswoman said.

The contract between the United Food and Commercial Workers Union, the AFL-CIO affiliate that represents about 1.4 million workers, and the region's three dominant supermarket chains expired on Oct. 5.

The labor dispute, which hinges on health-care costs, comes as unionized grocery workers across the United States have contracts up for a difficult renegotiation as their employers look to cut costs to offset weaker sales growth.

Union workers in Southern California voted 97 percent in favor of rejecting a two-month-old contract offer from the grocery chains and authorizing a strike Friday.

The United Food and Commercial Workers Union, also known as the UFCW, charges that the chains, using the competitive threat of Wal-Mart Stores Inc. as a stalking horse, are trying to shift hundreds of millions of dollars in health-care costs to workers through higher insurance co-payments and caps that would limit sharply limit reimbursement for surgery and other expensive treatment.

"There was just no progress," UFCW spokeswoman Ellen Anreder said of negotiations that broke off on Saturday. "They have as yet failed to substantiate the need for these concessions."

Representatives of the three grocery chains were not immediately available for comment.

A federal mediator had brought both sides back together for talks last week in Anaheim, California, as the strike vote loomed.

At one Vons in northeast Los Angeles on Sunday, a handful of shoppers crossed a picket line formed by about a dozen union workers carrying signs in English and Spanish, but as many turned around when strikers urged them to shop at a non-union grocery down the street.

Grocery store baggers covered by the UFCW start at $6 per hour while the most experienced workers who oversee departments make about $17.90, Andreder said. The average wage is between $12 and $14 per hour, she said.

Wal-Mart, besides being the world's largest company, has expanded to become the biggest player in the fiercely competitive $680 billion U.S. grocery industry it joined only a decade ago. Wal-Mart is a non-union shop.

Wal-Mart's massive scale has let it extract better terms from suppliers, widening the cost advantage between itself and traditional outlets like Kroger, Albertsons and Safeway.

Although Wal-Mart does not have grocery operations in Southern California, the company has announced plans to open about 40 hybrid grocery and general merchandise Supercenters in in the next several years.

Even after that expansion, Wal-Mart would control only about 1 percent of the grocery market in the region, Anreder said. The three dominant chains, taken together, have seen profits increase 91 percent over the past five years, she said.

Copyright 2003, Reuters News Service


TOPICS: Business/Economy; Front Page News; US: California
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1 posted on 10/12/2003 1:22:30 PM PDT by Brian S
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3 posted on 10/12/2003 1:29:51 PM PDT by Support Free Republic (Your support keeps Free Republic going strong!)
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To: Brian S
Workers in California pay an average of $150 per month in employee co-pay premiums for family insurance coverage. The grocery stores want their employees to pay $60 per month in co-pay premiums for family insurance coverage. They currently pay nothing.
4 posted on 10/12/2003 1:30:45 PM PDT by socal_parrot (Woo friggin' hoo!)
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To: Brian S
I stocked up a bit yesterday at Albertson's.

I understand Staters Bros groceries is open still!
5 posted on 10/12/2003 1:35:04 PM PDT by Ernest_at_the_Beach (Davis needs to get out of Arnoold's Office)
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To: Ernest_at_the_Beach
Good to see you EATB.

Hope you are doing well.

Best wishes.
6 posted on 10/12/2003 1:37:38 PM PDT by Pan_Yans Wife (You may forget the one with whom you have laughed, but never the one with whom you have wept.)
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To: Brian S; All
"In response to the Vons strike, Albertsons Inc. and Kroger Co.'s Ralphs, which are covered by the same master contract, locked out union workers from the first shift on Sunday, a union spokeswoman said."

I keep hearing this term "locked out." Last night a rather concerned yet wonderful young child of mine told me that the definition of "locked out" means that all the customers who are in the store at the time of the strike are locked inside until the strike is over.

It was my belief that "locked out" refers to shutting down any further contract negotiations with Ralph's and Albertson's employees.

Now it seems that "locked out" may mean about the same as "temporarily laid off" or "fired."

Does anyone know the legal definition of "locked out" and if so, how does it differ from "lay-off" or "on strike?"

7 posted on 10/12/2003 1:40:29 PM PDT by bd476
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To: socal_parrot
The grocery stores want their employees to pay $60 per month in co-pay premiums for family insurance coverage. They currently pay nothing.

Expecting them to pay for their own healthcare? Like everyone else in America? Well no wonder they struck! (/sarc)

8 posted on 10/12/2003 1:42:55 PM PDT by stands2reason
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To: bd476
I believe when a strike is called by a union against one employer, other employers who have employees who belong to that same union can "lock them out" by not permitting them to come in and work.
9 posted on 10/12/2003 1:43:19 PM PDT by Inspectorette
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To: William Creel
Since when are baggers unionized?

Been a long time. My boy has worked for Vons for two years, makes exactly $7.40 an hour as a Courtesy Clerk. He aint complaining about his wage, even though it's not a livable wage. They are only striking to keep what benefits they ALREADY have. They are not asking for *anything* extra as far as I know.....They are striking to just keep what they have...

10 posted on 10/12/2003 1:43:31 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: stands2reason
"Expecting them to pay for their own healthcare? Like everyone else in America? Well no wonder they struck! (/sarc)"

LOL! Just awful, ain't it?

11 posted on 10/12/2003 1:44:44 PM PDT by bd476
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To: Pan_Yans Wife
Thanks, keeping busy upgrading my computer gear and getting set to do lots of paper work!

Lurking as much as I can find time also!

12 posted on 10/12/2003 1:45:11 PM PDT by Ernest_at_the_Beach (Davis needs to get out of Arnoold's Office)
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To: William Creel
Baggers have been unionized at least since I was one, over 30 years ago.
13 posted on 10/12/2003 1:45:26 PM PDT by skip_intro
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To: stands2reason
Expecting them to pay for their own healthcare? Like everyone else in America? Well no wonder they struck! (/sarc)

They weren't expecting that. They already had that. They are not asking for anything, and are only striking to keep what they already have.

14 posted on 10/12/2003 1:46:17 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: socal_parrot
Workers in California pay an average of $150 per month in employee co-pay premiums for family insurance coverage. The grocery stores want their employees to pay $60 per month in co-pay premiums for family insurance coverage. They currently pay nothing.

That is a good deal. Very few people pay nothing at all. Maybe they should count their blessings.

15 posted on 10/12/2003 1:46:42 PM PDT by Zack Nguyen
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Comment #16 Removed by Moderator

To: Inspectorette
Thanks for your input.

It's weird though - it would seem that the other companies would want to keep their employees on the job. Then again, it could be that this is a management game of poker to see if the Union will call their bluff. I'm just guessing though.

17 posted on 10/12/2003 1:48:19 PM PDT by bd476
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Comment #18 Removed by Moderator

To: Zack Nguyen
That is a good deal. Very few people pay nothing at all. Maybe they should count their blessings

Why, because they want to reduce what they already have? Sheesh.....

I don't think some of you understand, the strikers aren't asking for anything extra. Only to keep what they already have. LOL!

19 posted on 10/12/2003 1:51:28 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: William Creel
I don't know, but when I was in college in Ohio in the (lets just same more than a few years ago)I worked part-time in a WalMart type of place and I had union dues taken out of my check. I got nothing for my money, it was nothing but what most union contracts are a way for the crooks to steal money from the people that work. Why the he@@ do you think the union leaders support the RATS, because they are all the same
20 posted on 10/12/2003 1:51:47 PM PDT by sticker
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To: William Creel
I would say fire them all. This probably one of the most easily fillable jobs.

You bet, lets fire them all, (even though they are *not* asking for more money or benefits).

Dirty no good SOBs. Fire them all!

21 posted on 10/12/2003 1:53:17 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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Comment #22 Removed by Moderator

To: William Creel
Self-checkout at the supermarket continues to be a very cool thing. My prediction for the future is that in fifty years (maybe sooner), grocery stores will no longer employ people. They will be completely automated. Many large manufacturers already use the kind of technology that could accomplish this very easily.
23 posted on 10/12/2003 1:56:05 PM PDT by philetus (Keep doing what you always do and you'll keep getting what you always get)
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To: skip_intro
Baggers have been unionized at least since I was one, over 30 years ago.

You were a year old in nineteen seventy-three? Stone the crows, mate! I took you for someone older than that. :=)

24 posted on 10/12/2003 1:56:45 PM PDT by Utilizer
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To: William Creel
I would say fire them all. This probably one of the most easily fillable jobs.

You bet, lets fire them all, (even though they are *not* asking for more money or benefits).

Dirty no good SOBs. Fire them all!

This type of menial labor shouldn't be unionized.

Huh? LOL! In light of what is happening, I would say your statement is bizarre......

25 posted on 10/12/2003 1:57:16 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: Utilizer
Uh, I think he meant since he was a member or an employee.....LOL......
26 posted on 10/12/2003 1:58:24 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: Joe Hadenuf
You're pro-Union?
27 posted on 10/12/2003 1:58:52 PM PDT by stands2reason (Only in California....)
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To: Joe Hadenuf
*grin*

I knew that. Really! *smile*

28 posted on 10/12/2003 1:59:54 PM PDT by Utilizer
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To: Joe Hadenuf
Thanks for clarifying this, Joe. It's hard to get the facts from the media, but that's nothing new.

I used to work as a cashier/officer person in a grocery store, was a member of the union, but earned a comparitively higher hourly rate than current grocery workers and it seemed that we were treated with much more respect by the management back then.

We also had zero health benefits until we achieved full time status (35+ hours/week for a few months.) Management didn't hold us back if we wanted to switch from part-time to full-time.

While it was a different union, we were also backed up by the Teamsters when we came close to a strike.

One final note: that grocery chain went out of business, partly due to competition from Kroger, who now owns Ralph's and Food for Less.

29 posted on 10/12/2003 2:00:10 PM PDT by bd476
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To: stands2reason
No, I don't like unions. But I am a fair person.

And in this *specific* situation the union isn't asking for more money or benifits. They're only striking to keep what benefits they already have.....

30 posted on 10/12/2003 2:01:34 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: bd476
Does anyone know the legal definition of "locked out" and if so, how does it differ from "lay-off" or "on strike?"

"Locked out" is the management version of a strike. Management chooses to not allow the workers to work without a contract.

These baggers don't see that with the Big Box stores, the retail grocery industry is running razor thin margins. There are also lots of alternatives (CostCo, Jons, Krogers, Vallarta, etc.), so they don't have much bargaining power (or sympathy) with the public. My prediction: One of the store chains (Ralphs, probably) will fold and the remaining stores will be fully stocked with permanent scab replacements. In 2 months, there will be merely an exchange of 70,000 new non-union grocery workers for the 70,000 old ones.

31 posted on 10/12/2003 2:08:53 PM PDT by freedumb2003 (Peace through Strength)
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To: bd476
Some here are jaded by unions and I don't blame them, again, I am not pro-union.

HOWEVER, this is different, the union isn't asking for more anything, only to keep the benefits they already have...

This is like everything else in America today.

Management wants everyone to work harder, wear different hats, they don't replace the people they already laid off and expect those that are left to take up the slack.

Employers today spend much of their time figuring out how to screw the employee, and pay them less.

Instead of regular cost of living wage increases and better benefits, they are now attempting to give employees meager bonuses, and stupid incentive prizes.

And many employers and now creating these incentive programs that in reality are schemes to make the employees compete against each other for these stupid prizes and weak bonuses in lieu of regular deserved raises.

This crap is happening everywhere.....

32 posted on 10/12/2003 2:13:31 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: Joe Hadenuf
My employer, who tries his best to keep a generous and progressive self-image, had to break down and start charging for health coverage this year; as a single guy, I pay about $80 a month and he picks up the rest.

We also now have a per-incident fee that's so high that I'd almost might as well go to a doctor of my own choice and pay her direct. Apparently the premium was set to double if these changes were not made.

I really don't think he would have done this if he didn't face a truly brutal rate increase, and grocery market managements are probably facing the same problem.

Under those circumstances, I don't think the union position is reasonable.

Tthe union workers also deserve criticism for suggesting we shop at non-union markets. They're cutting their own throats when they do that.

Gelson's is non-union, and if you ask me the workers seem happier and service is significantly better.

Hope that gives perspective.

D
33 posted on 10/12/2003 2:13:37 PM PDT by daviddennis
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To: daviddennis
Read #32. Like I said, this shiit is happening everywhere.

If most employers could hire illegal aliens to replace you for a fraction of what they are paying you, trust me, they would do it in a blink of an eye, as some already are...

It's my opinion that most companies in America no longer have any allegiance to their employees or this country....Bottom line, they don't give a damn, except to maintain the profit margin......Bet the rent....

34 posted on 10/12/2003 2:26:08 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: William Creel
I am very glad that my state is not union friendly and is a right to work state.

Also, this doesn't make much sense to me, "At one Vons in northeast Los Angeles on Sunday, a handful of shoppers crossed a picket line formed by about a dozen union workers carrying signs in English and Spanish, but as many turned around when strikers urged them to shop at a non-union grocery down the street."

35 posted on 10/12/2003 2:26:24 PM PDT by ItisaReligionofPeace ((the original))
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To: Joe Hadenuf
Not a livable wage? Being a courtesy clerk at a supermarket shouldn't be a livable wage.
36 posted on 10/12/2003 2:28:55 PM PDT by ItisaReligionofPeace ((the original))
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To: skip_intro
They aren't unionized around where I live.
37 posted on 10/12/2003 2:29:26 PM PDT by ItisaReligionofPeace ((the original))
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To: bd476
You don't want them on the job if they are going to be troublemakers.
38 posted on 10/12/2003 2:29:57 PM PDT by ItisaReligionofPeace ((the original))
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To: Ernest_at_the_Beach
I understand Staters Bros groceries is open still!

Staters Bros has agreed to abide by whatever the settlement is, thus it workers are remaining on the job. That is the last I heard anyhow.

39 posted on 10/12/2003 2:30:22 PM PDT by BJungNan
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To: Joe Hadenuf
Who cares if they aren't asking for more benefits. They are obviously asking for more benefits than the grocers want to pay them.
40 posted on 10/12/2003 2:31:36 PM PDT by ItisaReligionofPeace ((the original))
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To: ItisaReligionofPeace
Not a livable wage? Being a courtesy clerk at a supermarket shouldn't be a livable wage.

So if someone is not a senior scientist for Beckman, they souldn't be paid a fair livable wage? People that work on their feet for 8 hours a day shouldn't be paid a livable wage?

Sorry, I disagree.......

Understand, my kid has worked for Vons for *two* years and make 7.40 and hour. Not a big wage, or even a livable wage, BUT, he isn't bitching about his wage, and they are only striking to keep what benefits they already have.....

They are not asking for anything *extra*.

41 posted on 10/12/2003 2:34:22 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: daviddennis
There is a chain in the Southeast called Publix. I don't know if their employees are union, but I don't think they are union. They have the best service of any grocery store chain I've ever shopped.
42 posted on 10/12/2003 2:35:05 PM PDT by ItisaReligionofPeace ((the original))
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To: Joe Hadenuf
You are right. There is no such thing as loyalty anymore. That goes both ways.
43 posted on 10/12/2003 2:35:47 PM PDT by ItisaReligionofPeace ((the original))
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Comment #44 Removed by Moderator

To: ItisaReligionofPeace
Who cares if they aren't asking for more benefits. They are obviously asking for more benefits than the grocers want to pay them.

Uh, er, no, they are not asking for anything more than they don't already have.....

But I'm glad to see that many of you agree that reducing peoples medical benefits is a great thing. LOL!

(Dang, this is weird)

45 posted on 10/12/2003 2:37:04 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: William Creel
I worked for Burger King part time for 7.50 an hour for two years, and we didn't have a union.

And let me guess, you would have thought this a great thing if told that they were reducing your pay to 5.25 and hour, and reducing any benefits you may of had.

(LOL, this is weird)

46 posted on 10/12/2003 2:38:55 PM PDT by Joe Hadenuf (I failed anger management class, they decided to give me a passing grade anyway)
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To: Joe Hadenuf
Joe, a grown man should not make a livable wage working as a courtesy clerk. It's one thing if he is in college or is working on some other skill set. This is no different from workers at McDonalds. They get paid what they are worth. They have no skills that require more pay.

And, you are dead wrong when you say they are not asking for more. Insurance premiums are skyrocketing for the employers. They are asking their employers to pay the premiums. This is asking for more!!! It isn't the employers fault that insurance premiums cost so much.

47 posted on 10/12/2003 2:39:05 PM PDT by ItisaReligionofPeace ((the original))
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To: Joe Hadenuf
What does it cost a grocer in Kalifornia to pay a courtesy clerk $7.40 per hour? Add in workers comp, FICA, health insurance premiums, and whatever other fees the state can think of.
48 posted on 10/12/2003 2:40:09 PM PDT by ItisaReligionofPeace ((the original))
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To: Joe Hadenuf
Joe, please address what I just posted. By expecting their employers to pay the increasing premiums, they are asking for more. Stop thinking about the benefits being the same and think about what the employer is having to pay for the benefits!
49 posted on 10/12/2003 2:41:35 PM PDT by ItisaReligionofPeace ((the original))
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