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Denver 10-27
UFCW Local 7 Continues Bargaining with Big Three
October 27, 2004
UFCW Local 7’s contract covering more than 14,000 supermarket workers in Colorado expired on September 11, 2004. The UFCW continues to work toward a resolution with the three giant supermarket companies – Safeway, Albertsons and Kroger (King Soopers).
A federal mediator called all parties back to the table on October 27, 2004. UFCW Local 7 expects to receive the last, best and final offers from the companies soon. Unlike bargaining in other markets, the three chains have chosen to bargain separately in Colorado. But despite their separate bargaining, a secret three-way profit-sharing pact was uncovered by Local 7.
The Big Three used a similar agreement during the Southern California strike to share resources among the former competitors to distribute the financial pain inflicted by the UFCW picket lines. By the end of that strike, Kroger (Ralphs) had given Safeway and Albertsons $116 million dollars. California Attorney General Bill Lockyer filed a lawsuit against the companies alleging they were in violation of anti-trust laws and the litigation is pending.
The Southern California supermarket strike cost these three companies more than $2.5 billion in lost sales, and a year later, Safeway is still suffering from loss of sales. Customers stood behind UFCW strikers and took their consumer dollars elsewhere. The lesson for the employers is that by attacking your loyal workers and taking away affordable health care, you drive away loyal customers.
Get more updates on Denver contract negotiations at www.ufcw7.com.
