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UPDATE: Kroger, Albertsons reach tentative labor deal in SoCal

Thousands of grocery workers to vote on new contract this week

Russell Redman

September 9, 2019

3 Min Read
Ralphs store exterior_Irvine CA - Copy.PNG
Ralphs Grocery Co.

After six months of negotiations, United Food and Commercial Workers (UFCW) employees at more than 500 Ralphs, Albertsons, Vons and Pavilions stores in Southern California yesterday reached a tentative agreement with The Kroger Co. and Albertsons Cos.

Plans call for 46,000-plus grocery workers from UFCW Locals 770, 324, 1167, 135, 8, 1428 and 1442 to begin voting on the new contract today, with results of the vote to be announced Thursday. The Ralphs stores are part of Cincinnati-based Kroger Co., while the Albertsons, Vons and Pavilions stores are operated by Boise, Idaho-based Albertsons Cos.

“We reached a tentative agreement with the unions early yesterday morning,” Albertsons said in a statement Monday.    

Heading into the weekend, a strike appeared to be in the offing as union members met last week to organize picketing. UFCW 770 described the meetings as “final preparations for a Southern California strike.” Demonstrations also were held outside stores in recent weeks as grocery workers looked to rally customer support, promising shoppers six hours advance notice should a strike occur. In late June, members of the seven UFCW locals had authorized union leaders to call a strike against the stores if talks for a new three-year contract failed to make headway.

Related:UFCW turns up heat on Ralphs in Southern California

Albertsons_Sav-on_pharmacy_store-c[1].png logo in a gray background | Albertsons_Sav-on_pharmacy_store-c[1].png

UFCW 770 said Sunday that negotiators will recommend that grocery workers vote “yes” on the new agreement. The previous contract expired March 3.

“We believe this agreement is a step forward towards our vision of what grocery jobs should be in the future,” UFCW 770 President John Grant said in a statement. “Consumers and community leaders stood with us to show our value and the impact we have in our stores and communities. We have many to thank for their support.”

Los Angeles-based Ralphs Grocery Co. said yesterday that UFCW will share terms of the new contract with workers in ratification meetings. The union said it plans to release details of the agreement to the public following the vote.

“Ralphs and the seven Southern California UFCW locals have reached a tentative agreement for a new contract covering the company’s 18,000 associates working in 190 stores in Southern California. The parties were assisted by the Federal Mediation and Conciliation Services,” Ralphs said in a statement on Sunday. “Thank you for your patience during this process and your commitment to serving our customers and community.”

Progress in the labor talks had been slow. According to the UFCW locals, the retailers had proposed below-cost-of-living wage hikes, cashier wage reductions and questionable funding for the health care plan. Ralphs and Albertsons, meanwhile, said their proposals offered fair wages and benefits and preserved jobs while enabling their stores to compete in today’s retail grocery market.

Related:Grocery workers authorize strike in Southern California

Ralphs underscored the tough arithmetic that traditional supermarket chains now face. Citing figures for parent company Kroger, Ralphs said that each dollar in sales yields 1.4 cents in profit, with the rest going to costs — including employees, who represent the company’s second-largest investment. The retailer said that of every sales dollar, 78 cents goes to cost of goods, 13 cents to associate costs, 3 cents to fixed expenses, 3 cents to variable expenses and 2.6 cents to standard business expenses.

In announcing the tentative contract, the UFCW locals said their members’ stance during negotiations was “what keeps grocery jobs good jobs in California.” Votes on the agreement will be held through Sept. 11.

“We are proud to announce that a tentative agreement has been reached with both companies,” UFCW 324, 1167, 135, 8, 1428 and 1442 said in a statement to members. “We know the road to get here has been a long one for you and your co-workers. Your dedication to standing up for good jobs — engaging tens of thousands of customers with over 200 community rallies and store actions — has been the driving force behind getting a deal that you can be proud to have stood up for.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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