Southern California grocery workers approve new contract

Los Angeles, CA, United States (AHN) – Employees at Albertsons, Ralphs and Vons approved a contract proposal over the weekend, ending a months-long labor dispute in southern California over increased health contributions.

Members of the United Food and Commercial Workers voted to ratify a deal with the companies that union President Rick Icaza said protects workers’ healthcare and pensions, and provides for “modest” wage hikes.

The agreement is retroactive, beginning in March this year, when the old contract expired, and ending in March 2014.

“This is a win for grocery workers, our communities, and our local economy,” Icaza said.”Without the unity and determination of our members, this deal would not have been possible. And without the unwavering support of consumers and the community, it would have been a much tougher fight.”

The union last week issued a 72-hour notice of cancellation of contract, a final and mandatorty step before declaring a strike. It accused the supermarket chains of pushing for pay cuts for clerk helpers, no wage hikes in the first two years for most employees, and only a 15-cent increase in the third year for some employees.

The main point of contention was decreased employer contributions for a workers’ healthcare plan.

Albertsons, Ralphs and Vons, which are owned by SuperValu, Kroger and Safeway respectively, had cited rising healthcare costs and the need to remain competitive as reasons for their proposal.

The union, however, said the chains had reported profitable quarters and had been paying some of the lowest employer contributions in the past decade.

The new contract affects 62,000 workers. A strike would have been the first in the region since late 2003, when employees walked off the job and refused to return for more than four months, costing companies $2 billion in sales.

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