| FOR IMMEDIATE RELEASE November 8, 2002 |
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Industry Operators Show Interest in Buying Dominick's The United Food and Commercial Workers Union (UFCW) has contacted industry operators regarding a possible purchase of Dominick's in an effort to seek to protect the wages, health benefits and pensions of Dominick's workers. There are three major operators, that have owned regional and national food chains, with the interest and financial ability to successfully acquire and manage the 113 Dominick's locations throughout the city and suburbs. These parties are insisting on anonymity until and if Safeway officially puts its Dominick's stores on the market. The UFCW's goal is that employees and managers are retained following any acquisition. In an SEC filing this past Monday, Safeway threatened to close the stores and sell the Dominick's chain if its union workers refused to accept roll-backs in wages as well as health and pension benefits. "There are a number of operators who are extremely interested in the opportunity to establish a presence in the Chicagoland market," said Local 881 President and UFCW International Vice President Ronald E. Powell. "While there are no guarantees, an advantage for a new operator would be the fine reputation that the Dominick's banner has represented for generations, thanks to its unionized workforce." Dominick's has enjoyed a 50-year history in the Chicago area, offering consumers quality service and selection. Since Safeway acquired the stores in 1998, the company has cut over 20,000 customer-service hours from the schedule while drastically altering its product lines. Now Safeway is projecting declining sales and profits from the stores, and demanding that the union workers pay for the company's poor performance with the chain. "These major investors have knowledge of the Dominick's operation and its potential profitability," noted UFCW Local 1546 President Kenneth R. Boyd. "New owners have the opportunity to correct the management blunders that Safeway has admitted to already. The buyer would gain a loyal and experienced group of employees with a proven record for productivity as it revitalizes this once thriving chain." Negotiations with Safeway for the new Dominick's agreement are ongoing. "We remain at the bargaining table with the goal of reaching a fair and equitable settlement on behalf of the 8,900 members affected," asserted Kevin E. Williamson, UFCW International Vice President and Director - Region 6. "Safeway is the number one food operator in the country. It needs to stop scapegoating its workers for its own mistakes and using scare tactics designed to intimidate our members. We are fully committed to working out a favorable agreement that benefits UFCW members, whether it be under Safeway or a future owner." |
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