A Supermarket Strike Would Add to Economic Woes

The last thing we need now is a supermarket strike. If you take a trip across Southern California's economic landscape, here's what you will see: 

Unemployment is in double digits. Vacancy rates on major shopping streets like Ventura Boulevard are about 15 percent and rising. Home values have been falling steadily. Thousands of families whose homes are worth less than their mortgages are still hoping to get those mortgages modified. The foreclosure rate is climbing again.                                                                                               

Now, the prospect that thousands of  supermarket employees will walk off the job is looming like a tornado in the distance, threatening to upset the area's fragile attempt at economic recovery.

The good news is, a tentative agreement has been reached on the pension portion of the contract between the United Food and Commercial Workers (UFCW) locals and supermarket chains Ralphs, Vons and Albertsons. Still, the more difficult issues of wages and employee contributions to health care remain unresolved.

There's a news blackout on the negotiations, but sources say the parties are nowhere near an agreement on pay and how much supermarket employees  should contribute for health care premiums, deductibles and co-pays.

No question a strike could reverse some of the meager gains made in the Southern California economy. A work stoppage by a large number of supermarket employees would affect local spending and, of course, spending is the oxygen of a living, breathing economy.

On top of this, if a strike occurs, the supermarket chains can be expected to hire replacement workers—as they did during the lockout eight years ago. There's no shortage of jobless people who would be willing to cross picket lines to earn a day's pay.

A federal mediator has been unable to bring the parties together. The union contract expired in March, UFCW members have authorized a strike.

What now?

This would appear to be the appropriate time for both sides to agree on binding arbitration. Let a neutral party step in and settle the outstanding issues, perhaps by splitting the differences, then everybody can go home-half satisfied.

Political leadership is needed to nudge the parties into binding arbitration.

Members of the Los Angeles City Council and Mayor Antonio Villaraigosa have solid relationships with entities on both sides of this dispute.

The supermarket chains are major political players due to their frequent need for zoning changes and other items that come before the council.

And, of course, most of the elected officials here have deep ties to labor.

Unions representing truck drivers, teachers, firefighters and actors have pledged their support if a strike occurs. The Los Angeles Labor Federation has set aside $100,000 to help strikers pay for food during a stoppage.

Let's hope none of this is necessary. We don't need another blow to recovery efforts at a time when the regional economy is teetering.