Progress in avoiding a strike between the three major Southland grocery chains and their employees' union was made Saturday, but significant health care and wage issues remain.
Albertsons, Ralphs, Vons and the United Food and Commercial Workers Local 770 announced they've reached a tentative agreement on the pension portion of the new labor contract now being negotiated. The terms of the agreement were not disclosed.
More: Health Benefits at Issue
"We are pleased to have reached an agreement on this important part of the new labor agreement," a statement from the companies said.
"While we still have more work to do on other important parts of the contract, it is noteworthy we have been able to reach an agreement on the very challenging issue of pension benefits and the employers' contributions which fund those benefits."
"Healthcare is still an issue," said Daymond Rice, a spokesperson for Vons. "But what we think this demonstrates is that when all parties sit at the bargaining table, real progress can be made."
The union was somewhat optimistic about the news but said there is a lot left to negotiate.
"We've made virtually no progress on health care and wages," Mike Shimpock, spokesperson for United Food and Commercial Workers Local 770 said.
Low wages and high health care costs could drive many of its members below the poverty line, Shimpock said.
Last week, the LA County Federation of Labor, a union representing over 300 local unions in Los Angeles, voted unanimously to support the 62,000 grocery workers if they decide to strike.
"It's all about health benefits this time," Rick Icaza, President, United Food and Commercial Workers Local 770, said Wednesday at a news conference. "We don't want to strike but we're prepared to strike if we have too."
Employees are now having to "pay deductibles, premiums, and all the things that have caused the fact the employers are not paying their fair share in the health and welfare benefits," he said.
Icaza alleged that the corporations' health care offer would increase $10,000 per year for unionized grocery clerks. He said the supermarket chains "want employees to shoulder the burden" of increased health costs while refusing to make a "small contribution" from their profits.
The contract covering the workers expired in March. Both sides are working to avoid a repeat of the 2003 lockout, which affected Albertsons, Ralphs/Food For Less, and the Vons/Pavilions chains.
"We compromised on the pension issue,'' Icaza said Saturday. "Now is the time for management to compromise on health care.''
