GROCERY CONTRACT

NEGOTIATIONS BREAK DOWN

Grocery Workers Leave Negotiations After Employers Proposal

 

FOR IMMEDIATE RELEASE

8 May 2007                                                                

 

Representatives for the Southern California Grocery Workers broke off negotiations today after Ralphs, Vons and Albertsons’ negotiators made unacceptable demands that would lead to further erosion of health benefits and wages for employees.

 

“The markets are asking employees to pay more for benefits while the corporations pay less,” said Mike Shimpock, spokesperson for the Southern California Grocery Workers Union.  “The employers are demanding their employees sacrifice even further only to increase the markets already record profits.  If they want to further punish our members, we have nothing left to talk about.”

 

“It is unacceptable that these three companies, that are giving raises and bonuses in the millions to their CEOs and upper management, would seek to take away even more from their employees – which haven’t had a raise since 2002,” he continued.

 

Ralphs, Vons and Albertsons are experiencing record stock prices and annual profits into the billions, and yet are proposing contract language that would so dramatically reduce their contribution to their employees’ benefits it could bankrupt the entire employee health care system.

 

After the 2003 lockout and strike, the employers imposed a contract on grocery workers that created a “two-tier” wage and benefit system, one that required new workers to wait up to a year and a half for benefits and to work for near minimum wage.

 

Since that contract was imposed, nearly 40,000 grocery workers have been forced to work without health care benefits, and nearly 20,000 children of grocery workers have also been denied benefits, according to a recent UC Berkeley study. 

 

“We will not stand by as the employers try to deny health care and fair wages to even more of their employees just to boost their already outrageous CEO salaries and profits.  It is unfair, unacceptable and an insult to their employees, customers and the communities in which the stores operate.” Shimpock said