California Grocery Workers Strike the

California Grocery Workers Strike The Year 2003 witnessed some dramatic events across California with more than 65,000 employees of the major grocery supermarkets, (Albertsons, Ralphs (Kroger) and Vons and pavilions (Safeway)), protesting against their employers wage and health care benefits policies. [Alex Veiga] the demonstration that ensued was one of the largest of its kind extending to an unprecedented 144-day strike that created problems for everybody including the customers, employees and the employers. [Amaris White] by the end, however, it was the customers and the workers who were the most affected.

The workers had to settle for a new two-tier pay system with separate compensation plans for new and veteran workers, and almost halved health insurance compensation. These multi-billion-dollar grocery chains that were professional competitors formed a strange strategic alliance to quell the strength of the protest organized by the United Food and Commercial Workers (UFCW). The UFCW has more than 1.3 million members with 1 million workers from the grocery industry alone.

[UFCW] The reason for this squeeze on employee benefits was the proposed entry of Wal-Mart, the supermarket Giant with its planned opening of more than 40 superstores in California. The approximate loss due to strike for the grocery stores together was put at around $2 billion, however, the benefits to be realised with the implementation of the new contract was more in the long-term perspective.

[Alex Veiga] With the expiry of the contract this year, the tension has mounted, and already negotiations are going on with the employees crying out the unfairness of the previous settlement and pressing for new and improved benefits. The situation has become volatile once again and a potential strike of the grocery workers is looming large. This time, the rationale of the Supermarket employers, that of the impact of Wal-Mart's low cost non-union competition, does not appear to be convincing.

In southern California, Albertsons, Vons, Kroger along with Stater Bros and Food 4 Less control two thirds of the total grocery market. Even with the opening of its 22 supercenters across the city, Wal-Mart has managed to capture only 3% of grocery market of California. As Harley Shaiken, an economist and professor of Berkeley University states, "Wal-Mart served a useful purpose for the chains. Wal-Mart was the 800-pound gorilla at the bargaining table in 2003. In 2007, it's the 80-pound gorilla.

it's still a presence, it will be an important factor, but it's obviously moving slower than projected." [Abigail Goldman]. The current crisis started with Albertsons (Supervalu) chain store management unwilling to provide a decent healthcare plan and hourly compensation for its new employees. A recent study by Berkley University found that only 7% of Southern Californian grocery workers who had been inducted after the previous strike receive health benefits.

[Alex Veiga] as a corporate solidarity measure, this time the three major South Californian Grocers namely Albertsons (Supervalu), Ralphs (Kroger) and Vons (Safeway), made a 'mutual aid pact' that stymied the negotiations between the employers and the members of the UFCW.

As the UFCW president and director Shaun Barclay says, "This pact fits the same pattern of their actions three years ago when they forced UFCW members and their families into the streets and disrupted shoppers for nearly five months in a grab to end meaningful health care coverage for employees." UFCW] the pay hikes that the CEO's of these supermarkets received last year attests to their improving profitability proving that the supermarkets are crying wolf.

[UFCW] However, the situation has turned around and currently the workers are once again bargaining with the supermarket chains. Unlike three years ago, this time the Union is negotiating with the supermarkets individually. [Uprising] the plan seems to workout better for the Union. As a positive trend, the UFCW has successfully negotiated good contracts with Stater Bros and Gelsons, two comparatively smaller supermarket stores. [UFCW].

If these two smaller supermarkets can do this without the luxury of economies of scale that the big Supermarkets enjoy, it is fair enough to expect them to come up with similar agreeable contracts for their employees. As a positive precedence, the UFCW Local 204 in North Carolina has reached an acceptable contract (improved pay and health benefits) with the Kroger supermarket chain in the region.

[UFCW] it is only expected that the three big Supermarkets in California would follow suit and avert a crisis which would invariably be a lose situation for everyone concerned.