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If grocery workers strike, everyone loses
It's been only three years since that nightmare of a grocery strike here in Bakersfield, but already there are rumblings of another strike in the offing. Union reps now negotiating with owners of Vons and Albertsons are looking to get back what they lost with their last contract, but they may be gearing up for a fight that few have the stomach for. Talks between the United Food and Commercial Workers union and owners of Albertsons, Vons and Ralphs aren't going well. Major bones of contention are health care benefits and the two-tiered wage system, issues the union grudgingly shook hands over three years ago. But union officials say they aren't any happier about the settlement now than they were then. The workers' current contract will expire March 5 and though union leaders aren't rallying a strike force just yet, they are telling their troops to be ready if the call comes, said union spokesman Todd Conger. "Nobody wants to go on strike -- it's a last option," Conger said. "This time we don't have to have the same amount of popular support to be successful because shoppers will have other options." That's a good thing, because a lot of shoppers will want them, perhaps for good. The grocery chains took a $2 billion bath in the wake of the 2004 strike and some of their customers, perhaps embittered by the ugliness of the picket line, didn't come back. This time around the unions are looking to dump the despised two-tiered wage system and hope to go back to the days before their last contract, when workers contributed nothing to health-care premium costs. That's a perk coveted by many college-educated professionals, but that's not enough for union negotiators who are also asking for a reduction in co-pay and deductible costs, said Conger, who declined to go into further detail about the contract. As it is now, roughly half of the three companies' combined work force are veteran first-tier workers who still get health benefits at no premium cost to them, said Adena Tessler, spokeswoman for the three chains. For veteran workers, then, the issue is wages, for newer, second-tiered employees it's the health benefits and for the grocery chains it's about competing with Costco and Wal-Mart and other non-union stores. Still, nobody wants a repeat of three years ago. It was ugly out there on the line, where harsh words were often exchanged between striking workers and those who crossed the picket line. A business reporter then, I covered much of the strike on the local level and found it to be the most unpleasant and trying assignment of my career. Bring up the subject of a strike these days, though, and you're likely to evoke more despair than anger among workers, some of whom say they felt "swindled" by their employers and their union after the ratification of their last contract. "If they call a strike, I'll just quit," one young checker said. It's anyone's guess how much support workers or the general public will throw behind another strike, but one thing's for sure -- if union workers strike, everyone loses. The sad thing is, everyone already knows it. 38 comments from 16 users
1
posted by
anonymous
on Feb 28, 2007 at 10:39 AM
3162.
posted by
randomfactor
on Feb 28, 2007 at 10:41 AM
If the unions decide they need to strike, I'll honor the picket lines. I only crossed one line in the previous strike (medical emergency)--which, I'll admit, ended badly for the union workers. . For what it's worth, I didn't see any acrimony on the picket lines. posted by
anonymous
on Feb 28, 2007 at 11:03 AM
I crossed it before, and I'll cross it again. I'll cross it not only because it makes them look stupid to strike when their benefits are better than almost everyone's, but I'll cross it so that they might even have jobs to return to. I didn't become the object of any harsh words, however.
posted by
mattloch
on Feb 28, 2007 at 11:17 AM
I didn't cross it the last time, and I won't if they do it again. I've barely been back to them, namely because the service levels were so low because store managers had to cut back on employees to make up for the loss of sales. (Albertsons barely brought back their "3s a crowd" policy.) Don't forget the dirty tricks that the stores played during the strike. I just hope someone is watching them closer this time....
posted by
anonymous
on Feb 28, 2007 at 11:22 AM
These giant corporations have all the power when it comes to labor disputes. Unions, though imperfect organizations, are one of the few things that helps bring the scales of power a little closer to balanced. I didn't cross last time -- in fact, I joined them in picketing once -- and I won't cross this time.
posted by
ProgressivePete2
on Feb 28, 2007 at 11:26 AM
I only crossed the grocery picket line once, but only because I couldn't find any cilantro elsewhere. That's all I bought at those stores during the whole strike. One good thing is that if they strike this time, at least it won't be the middle of winter. I felt really bad for the people that froze their butts off just to keep what they already had.Let's take a look at some numbers: 2005 Corporate Profits Kroger (Ralphs) $3.3 Billion Safeway (Vons) $2.2 Billion Supervalu (Albertson's) $3.2 Billion All record profits for these companies. Now let's look at CEO compensation Pay special attention to the CEO of Vons who got an 817% increase while his workers got their pay and healthcare cut. Total CEO Compensation Corporation CEO 2003 2004 2005 % Increase '03-->'05 Kroger (Ralphs) David Dillon $3.7 Million $4.0 Million $5.1 Million 37.6% Safeway (Vons) Steven Burd $1.0 Million $2.3 Million $9.2 Million 817.3% Supervalu (Albertson's) Jeffrey Noddle $3.9 Million $5.7 Million $9.5 Million 142.9% Marilee, do you really expect anyone to feel sorry for these greedy corporations? I now do most of my shopping at Trader Joes, FoodMaxx and Costco. They don't overcharge their customers. posted by
TomW
on Feb 28, 2007 at 11:29 AM
Another title for this might be: If workers are forced to strike, everyone loses. Unions have a very limited set of tools at their disposal. If the company won't meet their demands, what should they do?
posted by
ProgressivePete2
on Feb 28, 2007 at 11:32 AM
Perhaps marilee thinks they should just whine about it and keep on working.
posted by
rzaroch
on Feb 28, 2007 at 11:33 AM
Go ask dwayne bishop at Grocery outlet on Ming if he would like to see the strike happen.
Last time, he could barely keep food on the shelves it was selling so fast. I hate to see the strike, but progressive pete is right (that rhymed!!)...maybe its a good sign that the strikes have pointed people towards more community stores like grocery outlet or local grocery providers instead of these huge corporations. posted by
randomfactor
on Feb 28, 2007 at 11:37 AM
FoodMaxx is part of SaveMart, for what it's worth, privately owned (the CEO isRobert Piccinini, son of the founder, couldn't find salary data).
Mostly FM and Costco for me. (My crossing the line was to get a coke for a diabetic having an insulin reaction. Cilantro? Any mexican supermarket ought to have had it!) posted by
ProgressivePete2
on Feb 28, 2007 at 11:39 AM
I guess you're right. If you put it that way, the only people that really lose are the ones in upper management in the big grocery stores. We get lower prices so they can try to keep customers, and we get to shop at local stores which puts more money into the local economy rather than in some CEO's bank account.Wow, it really screwed up my formatting above. I'll try to fix it to make it more readable. posted by
ProgressivePete2
on Feb 28, 2007 at 11:41 AM
Actually, Jason, you should take a look at that. When I try to edit the post, it shows up normally, in tables. In the comments, the top part of my post is at the bottom, and the formatting is not there.
posted by
robbwillis
on Feb 28, 2007 at 11:43 AM
posted by
ProgressivePete2
on Feb 28, 2007 at 11:43 AM
True RF, but I live way out in the SW, where the closest Supermercado is almost to Hwy99.
posted by
ProgressivePete2
on Feb 28, 2007 at 11:45 AM
Woah, what's going on. I clicked on your comment Robb, thinking it would bring me back here, but it went to your link. I got to your comment by clicking on the first quotes. Strange stuff today.
posted by
mattloch
on Feb 28, 2007 at 11:47 AM
I've switched almost exclusively to Trader Joe's, with the occasional Costco run. I'll go to Young's if I need anything not found at either of those two places. Albertsons is usually a "place of last resort", namely because I got tired of standing in line for 15-30 minutes (no joke!) just to buy a few items and save a buck.
posted by
randomfactor
on Feb 28, 2007 at 11:49 AM
Oh, no, the strikers can lose big-time. They lost last time, remember?
posted by
randomfactor
on Feb 28, 2007 at 12:05 PM
Hey, in searching for Mexican markets in the Southwest ran across this page http://en.wikipedia.org/wik... In retrospect I don't know why I'm surprised there's an entry. Oh, and posted by
adampayne
on Feb 28, 2007 at 12:07 PM
The grocery stores did not take a 2 billion dollar bath. These were chains that colluded together, and whose revenues fell from historical projections due to their own desire to destroy union representation. Thanks to Pete's efforts you can clearly see what the great outcry should be about regarding corporate America. The widening chasm of earnings between the top and the average employees. That is the crime today, that such a small percentage of individuals earn on the backs of their workers such outrageous sums of money while forcing the average family to borrow against home and savings to stay afloat.
posted by
woofwoof
on Feb 28, 2007 at 12:21 PM
FoodMAXX CHEAP! They dropped the *cheap* part, but wow what savings to be had. After shopping at the Maxx, and then going back to Albertsons, I guess it would be like going from the Green Frog back to Alberstons...major price differences. Shopping is not about the atmosphere, for me, it's about saving money. I wish they had a Trader Joe's in the NE. Ya know, that empty spot that use to be Michaels by East Hills, would be a good spot. Who's in? ha WOOF! posted by
randomfactor
on Feb 28, 2007 at 12:24 PM
Y'know, I shopped at TJ's for years (almost every time I went down to LA). Kept bugging them to open a store up here. Since they did, I get in there about twice a year... . Of course, I'm one of those nor'easters too. But *I* want a WinCo where the old Vons was next to The Store Which Shall Not Be Named. . Winco is kind of a cross between FoodMaxx (low prices, small items) and Costco (employee owned, so presumably a good place to work.) Anyone on the blogs work there? posted by
robbwillis
on Feb 28, 2007 at 12:46 PM
posted by
woofwoof
on Feb 28, 2007 at 01:08 PM
I look at that vacant bldg. where VONS use to be, in the NE and say, I'm suprised that hasn't been turned into a SUPERWalmart...
posted by
woofwoof
on Feb 28, 2007 at 01:09 PM
Ooops I said the NAME!
posted by
cajunbayoukitty
on Feb 28, 2007 at 04:10 PM
WINCO Rocks and is employee owned! I am a nor'easter as well, but will drive 20 minutes to save that kind of money (I think using 3 bucks in gas and still saving $50 or more is a bargin!)
posted by
bakodon
on Feb 28, 2007 at 06:07 PM
I have no sympathy for the retail jerks (clerks) These people deserve the union they got. It sold them down the river last time and they will do it again. Remember this is the same union that is preventing two Wal Marts to be delayed by their frivolous lawsuit. I was a member of UFCW union for 20 years and the union and its leadership is nowhere close to what it was when Mel Rubin was President. We shop at Costo, Sam's Food Maxx and Traders. WE try to stay away from Von's and Albert sons because of high prices and no customer service posted by
jermox
on Feb 28, 2007 at 09:06 PM
Well, I guess I have to throw my two cents in here. I am a grocery worker right now while I go to school. I was also a picketer during the last strike. I have been watching the scene right now and I feel I should clarify some of the issues. First, the union doesn't have the funds to commit to another strike. They had a 30 year resevoir of funds before the last strike, and they completely ate through those funds. In three years they could not have fully strengthen themselves for another full scale battle. Also, the employees vote to go on strike, and many employees are too jaded to vote for another strike. Second, it isn't any more advantageous for the company to go through another strike. Many people don't realize how much the company egged on the last strike. Deals were made between the companies a year in advance to "invest" in this strike, it was an investment to their future. Of course it didn't work out like they wanted it, but I'll talk about that in a minute. What is important here is that the companies took a huge loss in sales, and customers. Another strike would have a worse effect, people would be less forgiving. Third, I see this article is already presenting misconceptions of the negotiation processes. The proposed union contract will be nowhere close to the pre-strike contract. Honestly, grocery workers wouldn't vote for a strike unless they are losing more benefits. Even then, it would have to be a great loss. The proposed union contract I saw had a Cost of Living raise (usually 15 cents a year). This is something we haven't in quite awhile. Also they call it a removal of the two-tier wage system, but in it very little is removed. The main difference is that the second tier employees will have there top wage raised to the wage of the old timers, but it will take more hours to actually achieve it (so you may make the same wage, it'll just take you a decade to achieve it). Also, the insurance will always have the deductibles, and no employee is trying to change that. It is just the sign of the times. Lastly, the proposed union contract has already been accepted by smaller grocery chains like Stater Bros. They usually just sign sweetheart deals where they keep their employees during the strike and just accept whatever the other chains agree on. There are some reasons to accept this new contract that are quite obvious. The main one is because with the low pay scale, high union dues, and no insurance for two years leaves new employees' stay very short. You can do better working at In-N-Out. From what I understand the cost of hiring and training new employees is quite expensive. It is probably more practical to give slight increases in wages to deter the turnover rate. Whatever the reason the acceptance of the new contract from Stater Bros. hurts the big chains' bargaining position. It is hard to say you cannot afford the contract when smaller chains making less of a profit welcome them. So it would seem logical to think that another strike would not happen. But one thing I have learned is the grocery business is far from logical. So, it would seem the possibility of a strike is still unknown. Like your young checker, I will probably quit too if another strike were to happen. I think I would like to work in a book store. One thing to note is that your young checker makes little money, has no health insurance, and no real investment in the grocery business. He will not cross because he would not turn his back on his fellow co-workers who have to hang on a few more years till retirement (which is why they don't just go find another job). I can relate. posted by
jermox
on Feb 28, 2007 at 09:09 PM
Also, do not quote me on any of these comments, a current employee can not talk to the press. I would most likely be fired. I think a blog is safe though. And the union was stronger when Mel Rubin was president, but other things can be said about him too... posted by
steveeswenson
on Mar 1, 2007 at 08:05 AM
Jermox,I'm a union president here so I have a little understanding of the process. Negotiations are the art of the possible. The grocery store unions last time fought an impossible battle, to keep from paying health insurance costs. Almost no one has that anymore. Then the picketers were rude to lots of people. That's just stupid. That hurt their cause more than anything because of the face of the union is rude, their cause is lost. If I was negotiating for your workers, I would make it a high priority to give new checkers health insurance after three months. Holding off for two years is unconscionable. And I'm done with Albertson's. Its management unnecessarily locked out its employees. That was callous and mean-spirited and I won't shop there again. posted by
anonymous
on Mar 1, 2007 at 09:34 AM
3163.
posted by
GrpThink
on Mar 1, 2007 at 01:46 PM
Steve, How do you defend your statement that the picketers in the last strike were rude to lots of people and it hurt their cause when a large majority of people (according to articles and letters to the editor in the Bakersfield Californian) supported the workers in the strike? posted by
ProgressivePete2
on Mar 1, 2007 at 02:24 PM
I never had one single striker be rude to me, but then again, I didn't give them any reason to be either. I'm sure the people that got the rude treatment did something to bring it on themselves. Perhaps a comment here or there. Keep in mind also that these strikers were freezing their butts off at the time when the store managers and CEO types were laughing all the way to the bank.
posted by
randomfactor
on Mar 1, 2007 at 02:25 PM
I only approached one picket line, so I really can't say--but I doubt the tales of rampant rudeness.
posted by
ProgressivePete2
on Mar 1, 2007 at 02:27 PM
jermox, I used to work in a bookstore and loved it. The biggest problem is that the pay usually sucks. Most people do it for the love of books or the discount. Luckily I was young enough to where the pay didn't really matter. The high point of my bookstore career was when Steve Wozniak pulled up in his Ferrari and bought a bunch of SciFi books from us. Nice guy.
posted by
anonymous
on Mar 1, 2007 at 02:30 PM
I crossed the picket lines a hundred times, and never has a picketer been rude to me. Spam code = UFEED posted by
pamg
on Mar 1, 2007 at 04:56 PM
I supported the last strike, because I felt it was unfair to have promised workers certain things when they were hired, only to try to yank them away later. And on the one occasion that I did go into Albertson's during the strike, I was treated rudely by a checker who had waited on me many times over the years. So this time, they're not getting my support. During the last strike, I discovered Green Frog Market; a bit pricey, but a lovely place to shop. I've become a pretty regular customer there.
posted by
TomW
on Mar 1, 2007 at 06:24 PM
Murphy, the problem is that they have it in writing, and then the employer says they can't deliver it. Sort of like if you went to a new job and at the end of the first pay period, you're boss said they couldn't pay you what they said they would. The difference in this case is that these folks had been working for years under the illusion the the company would keep its word.
posted by
anonymous
on Mar 2, 2007 at 12:01 PM
3166.
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