Grocery Labor Contract Talks Extend Past Deadline

Contract negotiators for 62,000 grocery workers in Southern California, including those at the and in Malibu, and the operators of the major grocery chains remained at the bargaining table Sunday night as the extended contract covering workers expired and a threatened strike loomed.

Mike Shimpock, spokesman for the United Food and Commercial Workers Local 770, said negotiators likely will continue bargaining for at least several hours. Workers gave 72-hour notice Thursday of their cancellation of the contract extension, paving the way for a strike if a deal could not be reached by Sunday at 7:10 p.m.

"As long as there's progress being made we'll stay at the table," Shimpock said. "Our top priority is to get a negotiated agreement. We don't want to go on strike and really we shouldn't have to because these companies make enough money."

Albertsons released a statement on behalf of the three major supermarket chains Sunday night saying that progress was being made, but an agreement has not been reached.

"Even though the 72-hour notice period has expired, nothing has changed," the statement said. "The terms of our most recent contract—including wages and benefits—remain in place, and our stores are open to serve customers as they usually are. We are still hopeful that a contract will be reached soon."

Grocery store workers in Southern California went on strike for 141 days in 2003-04 after contract negotiations stalled primarily over health care issues.

Health care benefits again have been the sticking point between negotiators. Union officials said the health care proposal by the supermarket chains would bankrupt benefits by the end of 2012, potentially eliminating all health care benefits for grocery workers.

Vons, which like Pavilions is owned by Safeway Inc., in a statement released earlier Sunday said about half of its employees make no weekly contribution to their health benefits and the others pay $7 a month for individual coverage and $15 for full family coverage. The company has proposed that all employees pay $9 for individual and $24 for family coverage, the Vons statement said.

Ralphs said it would initially close all its stores if a strike were called.

Both sides in June announced a tentative agreement on pension benefits and employers' contributions that fund those benefits. Grocery workers have been working under the terms of a contract that was extended after it expired in March.