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Indybay Feature
STRIKE: 70,000 to picket at California Grocers
Clerks at Kroger Co. (KR)'s Ralphs and Pavilions, Safeway Inc. (SWY)'s Vons, and Albertsons (ABS) grocery stores went on strike late Saturday after negotiations between union representatives and store officials broke off, with health care coverage a key sticking point.
In all, more than 850 supermarkets and about 70,000 union workers at those stores were affected by the strike.
In all, more than 850 supermarkets and about 70,000 union workers at those stores were affected by the strike.
Union strike causes 70,000 to picket at nation's major grocers
by Freddie Mooche - senior financial columnist
October 12, 2003 (Axcess News) Los Angeles - United Food and Commercial Workers Union, an AFL-CIO affiliate, went on strike at Vons in California today.
Grocery chains Safeway (NYSE: SWY), Krogers (NYSE: KR) and Albertsons (NYSE: ABS) union workers joined Safeway's strike in full support of Vons attempts to change their workers health insurance plan (Vons is a Safeway grocery chain).
The Union's contract with the areas three dominant supermarket chains expired October 5th. The strike Sunday affected thousands members across Southern California of the United Food and Commercial Workers Union , or UFCW, which totals 1.4 million members.
No word as to the rest of the nation's Union members intention to join the strike had been indicated by Sunday evening. The Union's website shows comments on the strike and suggests that it could spread to other regions of the country. If Union members nationwide join the picket lines the Nation's food supply could be affected and panic consumers.
The UFCW stated that the three grocery chains are trying to shift hundreds of millions of dollars in health-care costs to workers through higher insurance co-payments and caps that would sharply limit reimbursement for surgery and other expensive treatment.
The move by the grocers was a similar program Wal-Mart (NYSE: WMT) had forced on employees who not protected by a Union.
The UFCW in a recent press release stated that ["Over the past several days, Southern California supermarket workers have been voting on a contract offer from three of the largest supermarket operators in the country.
They have been confronted with a stark choice - give up health care benefits not for only themselves and their families - but, to sacrifice future generations of supermarket workers.
In unprecedented numbers, Southern California supermarket workers turned out to vote and sent a clear message - they will fight for affordable health care.
They delivered a mandate to their union - if needed to save health care - strike to protect our families - strike to save health care coverage for the next generation of workers."]
Safeway Corporate released a low key announcement regarding the UFCW's breakdown of contract negotiations. The grocer stated that "Representatives from Albertsons, Ralphs and Vons said they had been negotiating in good faith for several weeks in an effort to reach an agreement."
The skyrocketing cost of health care and pension benefits had been key issues throughout the negotiations.
"As responsible companies, we are seeking nothing more than a fair contract that will help us to remain competitive in the face of soaring health care and benefit costs and increased competition from lower-cost operators," said John Burgon, Ralphs president.
"In light of the current competitive environment our proposals are generous and will continue to provide wages and benefits for our existing associates that are among the best in our industry," said Albertsons Southern California Division President Dave Simonson.
Vons President, Tom Keller said, "We are seeing a significant influx of nonunion, discount stores and unionized independent operators with union contract agreements that provide lower wages and significantly fewer benefits than we provide. These formats pay much lower labor expense than we do. This gives them an unfair advantage over other union operators."
http://www.theaxcess.net/money_12_1003.html
by Freddie Mooche - senior financial columnist
October 12, 2003 (Axcess News) Los Angeles - United Food and Commercial Workers Union, an AFL-CIO affiliate, went on strike at Vons in California today.
Grocery chains Safeway (NYSE: SWY), Krogers (NYSE: KR) and Albertsons (NYSE: ABS) union workers joined Safeway's strike in full support of Vons attempts to change their workers health insurance plan (Vons is a Safeway grocery chain).
The Union's contract with the areas three dominant supermarket chains expired October 5th. The strike Sunday affected thousands members across Southern California of the United Food and Commercial Workers Union , or UFCW, which totals 1.4 million members.
No word as to the rest of the nation's Union members intention to join the strike had been indicated by Sunday evening. The Union's website shows comments on the strike and suggests that it could spread to other regions of the country. If Union members nationwide join the picket lines the Nation's food supply could be affected and panic consumers.
The UFCW stated that the three grocery chains are trying to shift hundreds of millions of dollars in health-care costs to workers through higher insurance co-payments and caps that would sharply limit reimbursement for surgery and other expensive treatment.
The move by the grocers was a similar program Wal-Mart (NYSE: WMT) had forced on employees who not protected by a Union.
The UFCW in a recent press release stated that ["Over the past several days, Southern California supermarket workers have been voting on a contract offer from three of the largest supermarket operators in the country.
They have been confronted with a stark choice - give up health care benefits not for only themselves and their families - but, to sacrifice future generations of supermarket workers.
In unprecedented numbers, Southern California supermarket workers turned out to vote and sent a clear message - they will fight for affordable health care.
They delivered a mandate to their union - if needed to save health care - strike to protect our families - strike to save health care coverage for the next generation of workers."]
Safeway Corporate released a low key announcement regarding the UFCW's breakdown of contract negotiations. The grocer stated that "Representatives from Albertsons, Ralphs and Vons said they had been negotiating in good faith for several weeks in an effort to reach an agreement."
The skyrocketing cost of health care and pension benefits had been key issues throughout the negotiations.
"As responsible companies, we are seeking nothing more than a fair contract that will help us to remain competitive in the face of soaring health care and benefit costs and increased competition from lower-cost operators," said John Burgon, Ralphs president.
"In light of the current competitive environment our proposals are generous and will continue to provide wages and benefits for our existing associates that are among the best in our industry," said Albertsons Southern California Division President Dave Simonson.
Vons President, Tom Keller said, "We are seeing a significant influx of nonunion, discount stores and unionized independent operators with union contract agreements that provide lower wages and significantly fewer benefits than we provide. These formats pay much lower labor expense than we do. This gives them an unfair advantage over other union operators."
http://www.theaxcess.net/money_12_1003.html
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(Hide Comments)
NO MORE VIOLENCE OR POOR QUALITY FOOD AT ALBERTSONS!
(Albertsons is America's second largest grocery chain.)
Send your complaints, comments, or experience to;
Larry Johnston the CEO of Albertsons and his subordinates!
Lawrence_Johnston [at] albertsons.com, Michelle.Lawrence [at] albertsons.com, Charles.Lightfoot [at] albertsons.com, Nick.Kormeluk [at] albertsons.com, Mike.Beckstead [at] albertsons.com
^^^^^^^^^^^^^^
A Mugging At Albertsons -- Oct 5, 2003
To:
Lawrence R. Johnston et,al
CEO
Albertsons
250 Parkway Blvd
Boise, Idaho 83278
Dear Mr. Lawrence
I live in Oakland, California and want to bring the
Albertsons Store at 247 E. 18th St, Oakland, to your
attention. It's a total nightmare!
It has become a complete pig sty during the past year
with dirty sticky floors, stale products, and odors.
Many products on the shelves have expired dated labels with some products having expired months ago.
The meat department is the worst with meats not fit to
feed a dog because of low-quality cuts or being
discolored from freezer burns. Some appear to have
been thawed out and re-frozen, especially the steaks.
My friends call it ghetto food at this store and we
generally feel mugged every time we go there by high
prices and low-quality.
Often when time permits we go to a better part of
Oakland where white people shop and the quality is
markedly better, fresher, with clean floors.
It is time for an investigation at this store to clean
up the brazen outrageous discriminating policies being promoted by Albertsons staff at this store!
Worse yet is that Security at this store acts like a
bunch of thugs!
People shopping there get mugged by security!
Around 8:30 pm Friday Oct 3, 2003 I watched a woman
leave the store with a cart full of food when she
suddenly was jumped by 2 thugs. As I was about to call
the police, someone told me that was security.
I did not hear any alarms go off as she walked out the
door, and they did not identify themselves as security
as they jumped her!
They were dressed like punks and not in uniform!
As they dragged her back into the store after nearly
breaking her arms and handcuffing her I heard one of
them scream at her that she stole a loaf of bread!
All of us watching this were shocked by what happened
to her! Are we to be next?
This store scares me and I hope that an investigation
will happen and that city code inspectors check out
the products at this location.
Sincerely
J.Cooley
Oaktown CA.
********
From: "Michelle Lawrence" <Michelle.Lawrence [at] albertsons.com> | This is spam | Add to Address Book
To: "'Oaktownblues [at] yahoo.com'" <Oaktownblues [at] yahoo.com>
CC: "Charles Lightfoot" <Charles.Lightfoot [at] albertsons.com>
Subject: Store Concerns
Date: Wed, 8 Oct 2003 10:27:29 -0700
October 8, 2003
John Cooley
Oaktownblues [at] yahoo.com
Dear Mr. Cooley,
Thank you for your email regarding recent visits to our store on E. 18th Street in Oakland. I sincerely apologize for any inconveniences you encountered while visiting our store.
Larry Johnston forwarded your letter to me, Michelle Lawrence. I am the Area Vice President, and oversee the store you have inquired about. While it is disturbing to read the concerns you stated, I am, unfortunately, aware of the store conditions. The District Manager, Charles Lightfoot, has personally visited this store to address your concerns, including security issues, as well as sanitation concerns. I am proud to inform you that we are closing this store at the end of this month to rebuild a new, up-to-date store for our customers. I am confident that you will be pleased with our new store once it is completed.
Again, thank you for writing and I sincerely apologize for any inconvenience you experienced while shopping at our store. Your patronage is very important to us, and we appreciate any opportunity to better serve you.
Sincerely,
Michelle Lawrence
South Bay Area Vice President
Michelle Lawrence
South Bay Area Vice President
Albertson's Northern California Division
********
Customers Hoodwinked By Sell Dates
Changing The Dates/Re-Wrapping The Meats
Click below for shocking info...
http://www.msnbc.com/news/753195.asp?cp1=1
*********
CHECKING OTHER STORES
We expanded our investigation to include six more of the biggest, most recognizable names in the grocery business — Kroger, Publix, A & P, Safeway, Albertsons, and Pathmark — which together run thousands of stores in nearly every state.
Is it the industry’s dirty little secret? Do other supermarket chains do the same thing? We expanded our investigation to include six more of the biggest, most recognizable names in the grocery business — Kroger, Publix, A&P, Safeway, Albertsons and Pathmark — which together run thousands of stores in nearly every state. We would investigate a number of stores owned by each company, and spend about a week in each store. How would they do?
^^^^^^^^^^^^^^
Portland Chimes In
Click below for Portland Comments...
http://portland.indymedia.org/en/2003/10/273110.shtml
(Albertsons is America's second largest grocery chain.)
Send your complaints, comments, or experience to;
Larry Johnston the CEO of Albertsons and his subordinates!
Lawrence_Johnston [at] albertsons.com, Michelle.Lawrence [at] albertsons.com, Charles.Lightfoot [at] albertsons.com, Nick.Kormeluk [at] albertsons.com, Mike.Beckstead [at] albertsons.com
^^^^^^^^^^^^^^
A Mugging At Albertsons -- Oct 5, 2003
To:
Lawrence R. Johnston et,al
CEO
Albertsons
250 Parkway Blvd
Boise, Idaho 83278
Dear Mr. Lawrence
I live in Oakland, California and want to bring the
Albertsons Store at 247 E. 18th St, Oakland, to your
attention. It's a total nightmare!
It has become a complete pig sty during the past year
with dirty sticky floors, stale products, and odors.
Many products on the shelves have expired dated labels with some products having expired months ago.
The meat department is the worst with meats not fit to
feed a dog because of low-quality cuts or being
discolored from freezer burns. Some appear to have
been thawed out and re-frozen, especially the steaks.
My friends call it ghetto food at this store and we
generally feel mugged every time we go there by high
prices and low-quality.
Often when time permits we go to a better part of
Oakland where white people shop and the quality is
markedly better, fresher, with clean floors.
It is time for an investigation at this store to clean
up the brazen outrageous discriminating policies being promoted by Albertsons staff at this store!
Worse yet is that Security at this store acts like a
bunch of thugs!
People shopping there get mugged by security!
Around 8:30 pm Friday Oct 3, 2003 I watched a woman
leave the store with a cart full of food when she
suddenly was jumped by 2 thugs. As I was about to call
the police, someone told me that was security.
I did not hear any alarms go off as she walked out the
door, and they did not identify themselves as security
as they jumped her!
They were dressed like punks and not in uniform!
As they dragged her back into the store after nearly
breaking her arms and handcuffing her I heard one of
them scream at her that she stole a loaf of bread!
All of us watching this were shocked by what happened
to her! Are we to be next?
This store scares me and I hope that an investigation
will happen and that city code inspectors check out
the products at this location.
Sincerely
J.Cooley
Oaktown CA.
********
From: "Michelle Lawrence" <Michelle.Lawrence [at] albertsons.com> | This is spam | Add to Address Book
To: "'Oaktownblues [at] yahoo.com'" <Oaktownblues [at] yahoo.com>
CC: "Charles Lightfoot" <Charles.Lightfoot [at] albertsons.com>
Subject: Store Concerns
Date: Wed, 8 Oct 2003 10:27:29 -0700
October 8, 2003
John Cooley
Oaktownblues [at] yahoo.com
Dear Mr. Cooley,
Thank you for your email regarding recent visits to our store on E. 18th Street in Oakland. I sincerely apologize for any inconveniences you encountered while visiting our store.
Larry Johnston forwarded your letter to me, Michelle Lawrence. I am the Area Vice President, and oversee the store you have inquired about. While it is disturbing to read the concerns you stated, I am, unfortunately, aware of the store conditions. The District Manager, Charles Lightfoot, has personally visited this store to address your concerns, including security issues, as well as sanitation concerns. I am proud to inform you that we are closing this store at the end of this month to rebuild a new, up-to-date store for our customers. I am confident that you will be pleased with our new store once it is completed.
Again, thank you for writing and I sincerely apologize for any inconvenience you experienced while shopping at our store. Your patronage is very important to us, and we appreciate any opportunity to better serve you.
Sincerely,
Michelle Lawrence
South Bay Area Vice President
Michelle Lawrence
South Bay Area Vice President
Albertson's Northern California Division
********
Customers Hoodwinked By Sell Dates
Changing The Dates/Re-Wrapping The Meats
Click below for shocking info...
http://www.msnbc.com/news/753195.asp?cp1=1
*********
CHECKING OTHER STORES
We expanded our investigation to include six more of the biggest, most recognizable names in the grocery business — Kroger, Publix, A & P, Safeway, Albertsons, and Pathmark — which together run thousands of stores in nearly every state.
Is it the industry’s dirty little secret? Do other supermarket chains do the same thing? We expanded our investigation to include six more of the biggest, most recognizable names in the grocery business — Kroger, Publix, A&P, Safeway, Albertsons and Pathmark — which together run thousands of stores in nearly every state. We would investigate a number of stores owned by each company, and spend about a week in each store. How would they do?
^^^^^^^^^^^^^^
Portland Chimes In
Click below for Portland Comments...
http://portland.indymedia.org/en/2003/10/273110.shtml
THE WORKERS WHO ARE STRIKING TO AVOID PAYING 60 DOLLARS A YEAR IN HEALTH CARE ARE STUPID. GO BACK TO WORK, SAVE THE ECONOMY FROM HAVING TO PAY FOR YOUR SMALL UNIONIZED BRAINWASHED WORKPLACE. YOU ARE ABSOLUTELY GOING TO FIND YOURSELF GETTING KNOWHERE. UNION PEOPLE JUST DON'T GET IT. IT IS SO SAD THEY ARE BRAINWASHED. WHEN YOU STRIKE THE UNION MAKES MORE MONEY. GIVE IT UP AND GO BACK TO WORK. UNION IS LIKE COMMUNISM........
The actions of the corporations is an attempt to break the unions. It is an assault on the middle class and all that it means in America. Corporate greed and wall street no longer wish to share the rewards with their employees. Denied affordable health care, these workers will end up on Medi-Cal. How sad that people who have been productive citizens will be forced to go on welfare for their health benefits after losing their homes. The employees are willing to accept weekly or monthly payments, reasonable co payment but the companies want them to pay 1/2 of the cost of medicine, hospital stays, doctor visits etc. They want to put a limit on the number of cancer treatments allowed as well.
I think it's time we ask ourselves why we are allowing the middle class to be downsized by loss of jobs,and reduced wages, retirement and benefits. The individual worker now must save for retirement at a time when the stock market is flat, interest on savings is negligible and corporate fraud is at an all time high. GOOD LUCK IN YOUR STRIKE EFFORTS. AMERICAN WORKERS ARE DEPENDING UPON YOU TO HOLD THE LINE. I've walked your picket line and know that you have the support of many. Keep it up and remind shoppers who might wish to cross your lines that you are doing it for them as well as yourselves. There is no guarantee that they won't raise prices even if they win.
I think it's time we ask ourselves why we are allowing the middle class to be downsized by loss of jobs,and reduced wages, retirement and benefits. The individual worker now must save for retirement at a time when the stock market is flat, interest on savings is negligible and corporate fraud is at an all time high. GOOD LUCK IN YOUR STRIKE EFFORTS. AMERICAN WORKERS ARE DEPENDING UPON YOU TO HOLD THE LINE. I've walked your picket line and know that you have the support of many. Keep it up and remind shoppers who might wish to cross your lines that you are doing it for them as well as yourselves. There is no guarantee that they won't raise prices even if they win.
Did it ever occur to you that unions are the only reason why you aren’t being forced to work 16 hours day? I bet you don’t even know why we have the 9-5 hour work shift. If it weren’t for the Unions you would be a lot more miserable let’s just say that.
“Unions are like communism”. You say that as if it’s a bad thing. It’s better than capitalism where the boss decides everything and the workers are left out of the decision making process.
Unions are all about consensus decision making. You might as well be born dictator to support a work system that is run by only one person. It is only fare for workers to have the right to be apart of what ever change or alter that is going to affect their financial living.
Key word in communism, “Community” Do you understand? Community of workers uniting for a better standard of living to make ends meet?
Do you understand the purpose now?
“Unions are like communism”. You say that as if it’s a bad thing. It’s better than capitalism where the boss decides everything and the workers are left out of the decision making process.
Unions are all about consensus decision making. You might as well be born dictator to support a work system that is run by only one person. It is only fare for workers to have the right to be apart of what ever change or alter that is going to affect their financial living.
Key word in communism, “Community” Do you understand? Community of workers uniting for a better standard of living to make ends meet?
Do you understand the purpose now?
HELLO
FOR THE PERSON WHO IS SAYING THAT THE EMPLOYES HAVE TO GO BACK TO WORK, YOU ARE SO WRONG, HOW CAN I GO BACK TO WORK IF I WAS LOCKED OUT OF THE STORE, I AM NOT ALLOWED IN TO WORK. I AM A COURTESY CLERK AT RALPHS IN SAN DIEGO, I'VE BEING WORKING AT MY STORE FOR OVER FOUR YEARS, I STARTED OUT MAKING $6.00 AN HOUR THE FIRST YEAR (AUGUST 1999 TO AUGUST2000) I RECEIVED A RAISE OF $.90 (LESS THAN A $1.00 ) IN AUGUST 2000, I WAS SO EXCITED FOR THAT RAISE AND I APPRECIATED IT SO MUCH, THE RAISON IS NOT THE NINTY CENT AN HOUR RAISE ,NO IT IS NOT , THE RAISON IS BEING ABLE TO HAVE A RAISE AND KEEP MY BENEFITS, IT'S FOR THE BENEFITS THAT I WAS WORKINK MY BUTT OFF EVERY DAY MAKING SURE THAT MY CUSTOMERS LEAVE WITH A HAPPY SMILE AN ME LEAING THE STORE WITH A HAPPY SMILE FOR HAVING MY BENEFITS!!!!!
I GOT ANOTHE RAIS OF $.15 AN HOUR SIX MONTHS LATER MAKING $7.05 AN HOUR , THAN $7.61 AN HOUR AFTER 6 MONTHS . CAN YOU LIVE IN CALIFORNIA MAKING $7.00 AN HOUR THESE DAYS?
WILL YOU BA ABLE TO PAY $60.00 A MONTH HEALTH PREMIUMS? $45.00 DOCTOR VISITS , NO VISION AND DENTAL BENEFITS (MY DENTIST JUST TOLD ME THAT I HAVE 2 ROOT CANALS, PERFECT TIME TO HAVE DON'T YOU THINK?)
I WANT TO WORK I DID NOT CHOSE TO BA LOCKED OUT!!! WHY DON'T YOU UNDERSTAND THAT?
I WOULDN'T MIND TO PAY WHAT THE AVERAGE FAMILIES PAY FOR THEIR BENEFITS , BUT WHAT KROGER IS GIVING US NOW IS NOT FAIR!!! I WILL PAY UP TO $20.00 FOR A DOCTOR VISIT ,WILL PAY 50% TO KEEP MY DENTAL AN VISION BENEFITS, I WOULDN'T MIND AT ALL.
I AM LOOKING FOR ANOTHER JOB AT THIS MOMENT, HOPING TO FIND A BETTER AND A SAFER PLACE TO WORK AT.
THANK YOU FOR TAKING THE TIME TO READ MY SHARE .
SINCERELY,
SUNSHINE SOMEDAY.
FOR THE PERSON WHO IS SAYING THAT THE EMPLOYES HAVE TO GO BACK TO WORK, YOU ARE SO WRONG, HOW CAN I GO BACK TO WORK IF I WAS LOCKED OUT OF THE STORE, I AM NOT ALLOWED IN TO WORK. I AM A COURTESY CLERK AT RALPHS IN SAN DIEGO, I'VE BEING WORKING AT MY STORE FOR OVER FOUR YEARS, I STARTED OUT MAKING $6.00 AN HOUR THE FIRST YEAR (AUGUST 1999 TO AUGUST2000) I RECEIVED A RAISE OF $.90 (LESS THAN A $1.00 ) IN AUGUST 2000, I WAS SO EXCITED FOR THAT RAISE AND I APPRECIATED IT SO MUCH, THE RAISON IS NOT THE NINTY CENT AN HOUR RAISE ,NO IT IS NOT , THE RAISON IS BEING ABLE TO HAVE A RAISE AND KEEP MY BENEFITS, IT'S FOR THE BENEFITS THAT I WAS WORKINK MY BUTT OFF EVERY DAY MAKING SURE THAT MY CUSTOMERS LEAVE WITH A HAPPY SMILE AN ME LEAING THE STORE WITH A HAPPY SMILE FOR HAVING MY BENEFITS!!!!!
I GOT ANOTHE RAIS OF $.15 AN HOUR SIX MONTHS LATER MAKING $7.05 AN HOUR , THAN $7.61 AN HOUR AFTER 6 MONTHS . CAN YOU LIVE IN CALIFORNIA MAKING $7.00 AN HOUR THESE DAYS?
WILL YOU BA ABLE TO PAY $60.00 A MONTH HEALTH PREMIUMS? $45.00 DOCTOR VISITS , NO VISION AND DENTAL BENEFITS (MY DENTIST JUST TOLD ME THAT I HAVE 2 ROOT CANALS, PERFECT TIME TO HAVE DON'T YOU THINK?)
I WANT TO WORK I DID NOT CHOSE TO BA LOCKED OUT!!! WHY DON'T YOU UNDERSTAND THAT?
I WOULDN'T MIND TO PAY WHAT THE AVERAGE FAMILIES PAY FOR THEIR BENEFITS , BUT WHAT KROGER IS GIVING US NOW IS NOT FAIR!!! I WILL PAY UP TO $20.00 FOR A DOCTOR VISIT ,WILL PAY 50% TO KEEP MY DENTAL AN VISION BENEFITS, I WOULDN'T MIND AT ALL.
I AM LOOKING FOR ANOTHER JOB AT THIS MOMENT, HOPING TO FIND A BETTER AND A SAFER PLACE TO WORK AT.
THANK YOU FOR TAKING THE TIME TO READ MY SHARE .
SINCERELY,
SUNSHINE SOMEDAY.
Please educate yourself before you go and make rude comments like that. As a Ralphs employee, I pay my weekly union dues and that is all good. With this new contract I will be paying $5 more a week (because I do not have a family to support) for half of the benifits that I recieved last month. I will lose my dental and vision coverage, have a copay of $50 when I go to the doctor, pay half the cost of a perscription, half the cost of a hospital stay, if I ever get cancer my medical will pay up to $20,000 dollars and the rest has to come out of my pocket, Kaiser and Pacificare will not be an option for healthcare any more...and that is not all. There is also the issue of retirement...
Please know that if it was up to us that we would gladly pay the increased cost if we recieved the same coverage.
We are not asking for anything, we want to keep the contract the same.
As on the issue of "go back to work", we can't. There is a difference between going on strike and being locked out. Vons workers decided to walk out on their jobs, therefore they are on strike. Ralphs and Albertsons employees were asked to leave, we are locked out.
Hopefully by reading this, you will think a little harder before crossing our pickett line.
Thank you.
Emily
Please know that if it was up to us that we would gladly pay the increased cost if we recieved the same coverage.
We are not asking for anything, we want to keep the contract the same.
As on the issue of "go back to work", we can't. There is a difference between going on strike and being locked out. Vons workers decided to walk out on their jobs, therefore they are on strike. Ralphs and Albertsons employees were asked to leave, we are locked out.
Hopefully by reading this, you will think a little harder before crossing our pickett line.
Thank you.
Emily
is a real communist party with balls that can fucking organize workers across the US and agitate for an anti-capitalist programme. The CPUSA, RCP, etc. are too fucking clownish to be taken seriously and do nothing but worship third world struggles. What about the struggle here? Workers aren't going to support weaklings who whine, they want militancy and results.
you're a clown, CP Nelson.
your health care costs have gone up drastically and so you cross a picket line. you get an "F" for logical argumentation.
conditions for working class people are deteriorating in the US, and being a good little boot-licker ain't gonna make conditions better, only worse.
here's some "tip of the iceberg" stats showing how bad shit has gotten:
1. Between 1990 and 2002, average American household
credit-card debt increased from $2,985 and $8,562,
according to the National Foundation for Credit
Counseling.
(Seattle Times, “Steeped in debt: Good times end;
spending doesn’t,” 10/13/02)
2. The share of American workers with company pension
plans has progressively slipped in each decade--from
almost 40% at the beginning of 1980 to about 20% now.
(Fortune, “Bye-Bye Pension: Soon hundreds of
corporations may slash pensions by as much as half,”
3/3/03)
3. After adjusting for inflation, the average tuition
at a four-year public university increased 117%
between 1981 and 2001. The rise at private
universities was 123%.
(Wall Street Journal, “Economic Squeeze Has More
Students Working Overtime,” 11/5/02)
4. Eighty-two percent of employers expect to raise
retirees' contributions to health insurance premiums
over the next three years, and 22 percent say they are
likely to drop coverage for future retirees, according
to a survey of large employers.
(Chicago Sun-Times, “82% to raise retirees’ costs for
health care,” 12/6/02)
5. Home prices rose 45 to 52 percent between 1991-2001
in the United States.
(CNNMoney, “Homes out of reach,” 5/20/02)
6. “Health care costs are rising while the economy is
sputtering, and it looks like workers are going to pay
the price” -- Drew Altman, Kaiser Foundation
your health care costs have gone up drastically and so you cross a picket line. you get an "F" for logical argumentation.
conditions for working class people are deteriorating in the US, and being a good little boot-licker ain't gonna make conditions better, only worse.
here's some "tip of the iceberg" stats showing how bad shit has gotten:
1. Between 1990 and 2002, average American household
credit-card debt increased from $2,985 and $8,562,
according to the National Foundation for Credit
Counseling.
(Seattle Times, “Steeped in debt: Good times end;
spending doesn’t,” 10/13/02)
2. The share of American workers with company pension
plans has progressively slipped in each decade--from
almost 40% at the beginning of 1980 to about 20% now.
(Fortune, “Bye-Bye Pension: Soon hundreds of
corporations may slash pensions by as much as half,”
3/3/03)
3. After adjusting for inflation, the average tuition
at a four-year public university increased 117%
between 1981 and 2001. The rise at private
universities was 123%.
(Wall Street Journal, “Economic Squeeze Has More
Students Working Overtime,” 11/5/02)
4. Eighty-two percent of employers expect to raise
retirees' contributions to health insurance premiums
over the next three years, and 22 percent say they are
likely to drop coverage for future retirees, according
to a survey of large employers.
(Chicago Sun-Times, “82% to raise retirees’ costs for
health care,” 12/6/02)
5. Home prices rose 45 to 52 percent between 1991-2001
in the United States.
(CNNMoney, “Homes out of reach,” 5/20/02)
6. “Health care costs are rising while the economy is
sputtering, and it looks like workers are going to pay
the price” -- Drew Altman, Kaiser Foundation
Drew Altman, Kaiser Foundation:
1) Are you telling me that working class people are to stupid and therefore should not responsible for their credit card debt? What are you saying?
2) I was under the impression that I am responsible for my life. I realize that at age 65 I will no longer be working, that's why I save for my retirement, not spending every cent that comes through my door. I am not entitled to have someone take care of me, again I am responsible for myself (interesting concept isn't it Drew).
3) Even with the increase in tuition, anyone going to a public institute for higher learning is still having their "higher education" subsidized. Drew, have you also calculated the increased earnings over 10 years for those who have taken advantage of receiving an education?
4) I'll take you at your word for the accuracy of the figures relating to retirees' contributions to health insurance premiums. Medical care costs a fortune, but look at the reasons why: Outrageous malpractice premiums (a society that is teaching its constituents that anytime anything has a less than desirable outcome SUE!). As patients we want the latest / greatest that research and advancing technology can provide - this comes with a cost. Are we to follow Canada down the socialized medicine route? Personally I don't want to have to wait 6 months to have a cancer removed because after all "it's slow growing" and 6 months is the first available surgery time (this is true situation which I have been assisting a friend with).
5) My income rose 224% from 1991-2001. During that period of time my home increased in value 57%. What are you telling me Drew, you want communism/socialism?
6) The economy is what it always has been - cyclical. The changes regarding the cost of health care are truly unique in that never in the course of history have we developed the technology to provide the advanced methods of health care that are available today. Drew, The United States of America is a capitalistic society, the only proven model of society that can truly work. If those of your ilk do not like capitalism then I suggest that you actually review history in detail, then find an island somewhere where you can set up your utopia.
1) Are you telling me that working class people are to stupid and therefore should not responsible for their credit card debt? What are you saying?
2) I was under the impression that I am responsible for my life. I realize that at age 65 I will no longer be working, that's why I save for my retirement, not spending every cent that comes through my door. I am not entitled to have someone take care of me, again I am responsible for myself (interesting concept isn't it Drew).
3) Even with the increase in tuition, anyone going to a public institute for higher learning is still having their "higher education" subsidized. Drew, have you also calculated the increased earnings over 10 years for those who have taken advantage of receiving an education?
4) I'll take you at your word for the accuracy of the figures relating to retirees' contributions to health insurance premiums. Medical care costs a fortune, but look at the reasons why: Outrageous malpractice premiums (a society that is teaching its constituents that anytime anything has a less than desirable outcome SUE!). As patients we want the latest / greatest that research and advancing technology can provide - this comes with a cost. Are we to follow Canada down the socialized medicine route? Personally I don't want to have to wait 6 months to have a cancer removed because after all "it's slow growing" and 6 months is the first available surgery time (this is true situation which I have been assisting a friend with).
5) My income rose 224% from 1991-2001. During that period of time my home increased in value 57%. What are you telling me Drew, you want communism/socialism?
6) The economy is what it always has been - cyclical. The changes regarding the cost of health care are truly unique in that never in the course of history have we developed the technology to provide the advanced methods of health care that are available today. Drew, The United States of America is a capitalistic society, the only proven model of society that can truly work. If those of your ilk do not like capitalism then I suggest that you actually review history in detail, then find an island somewhere where you can set up your utopia.
Any system that can't provide for the needs of all of its participants, isn't working. Any system that is based on exploitation is immoral. Down with capitalism.
I would like to respond to the comment made about Unions making money during a strike. The Union is paying each "striker" 200 - 300 dollars a week for picketing. That goes to all 70,000 "strikers" ( if they all strike). So i'm confused. It sounds like the union is loosing money to make this strike happen. The ones who gain to profit are the corporations fat pockets if they win. Lets also not forget about the sacrafice being made by the employees who are picketing. Many of them make a lot more than what they are being paid to picket. Plus we don't get sick pay or overtime either.
Anyone who is involved in this strike/lockout obviously feels that there is more to lose in the long run than in this month of striking.
I'd also like to let people know that grocery stores do not hire a lot of full time employees. They are primarily part time at 24 hours a week. So even if we make anywhere from 12.50 - 17.90 an hour, it is not very much if one works part time. The only thing that makes our job worth it is the benefits. If it wasn't for that i would have never worked at such a stressfull, high paced job.
O.K. I feel for you all, however my family has to eat. I live in Ranco Bernardo and near my house your choises of markets are: Ralphs, Vons, or Albertsons.
There are no little "mom & pop" grocers. I understand your position.. I work for a small company, we don't have benefits. I need several thousand $'s of dental work also...I make under $10.00 an hour.....
You're lucky to have any benefits.....I support your fight to keep the benefits you have, but I don't know if I will be staving my family for YOU, a person who rings up my items without any intrest of who I am or what I have to go through to see the doctor or dentist. Would it matter to you if I lost my benefits? Would you starve yourself and your children to support making my boss provide us with low cost benefits? Sorry, but my family comes before you.
There are no little "mom & pop" grocers. I understand your position.. I work for a small company, we don't have benefits. I need several thousand $'s of dental work also...I make under $10.00 an hour.....
You're lucky to have any benefits.....I support your fight to keep the benefits you have, but I don't know if I will be staving my family for YOU, a person who rings up my items without any intrest of who I am or what I have to go through to see the doctor or dentist. Would it matter to you if I lost my benefits? Would you starve yourself and your children to support making my boss provide us with low cost benefits? Sorry, but my family comes before you.
O.K. I feel for you all, however my family has to eat. I live in Ranco Bernardo and near my house your choises of markets are: Ralphs, Vons, or Albertsons.
There are no little "mom & pop" grocers. I understand your position.. I work for a small company, we don't have benefits. I need several thousand $'s of dental work also...I make under $10.00 an hour.....
You're lucky to have any benefits.....I support your fight to keep the benefits you have, but I don't know if I will be staving my family for YOU, a person who rings up my items without any intrest of who I am or what I have to go through to see the doctor or dentist. Would it matter to you if I lost my benefits? Would you starve yourself and your children to support making my boss provide us with low cost benefits? Sorry, but my family comes before you.
There are no little "mom & pop" grocers. I understand your position.. I work for a small company, we don't have benefits. I need several thousand $'s of dental work also...I make under $10.00 an hour.....
You're lucky to have any benefits.....I support your fight to keep the benefits you have, but I don't know if I will be staving my family for YOU, a person who rings up my items without any intrest of who I am or what I have to go through to see the doctor or dentist. Would it matter to you if I lost my benefits? Would you starve yourself and your children to support making my boss provide us with low cost benefits? Sorry, but my family comes before you.
We wanted to thank everyone for their support! And honoring our picket lines!
Our company has "LOCKED US OUT"
On Sunday October 12th, 2003 we came to work and were sent home.
Our company told us, with a" LOCK OUT" you do not have the option to work at your store or any Albertsons, Ralphs or Vons store.
Our company has "LOCKED US OUT"
On Sunday October 12th, 2003 we came to work and were sent home.
Our company told us, with a" LOCK OUT" you do not have the option to work at your store or any Albertsons, Ralphs or Vons store.
We wanted to thank everyone for their support! And honoring our picket lines!
Our company has "LOCKED US OUT"
On Sunday October 12th, 2003 we came to work and were sent home.
Our company told us, with a" LOCK OUT" you do not have the option to work at your store or any Albertsons, Ralphs or Vons store.
Our company has "LOCKED US OUT"
On Sunday October 12th, 2003 we came to work and were sent home.
Our company told us, with a" LOCK OUT" you do not have the option to work at your store or any Albertsons, Ralphs or Vons store.
For all of you working out there from Vegas Stores your turn will come next year when your contract is up and California employees come to work your positions. I hope the money your are making out there is worth it. Make sure you save because remember your turn will come next year. I support the strike keep up the good work.
You live in this country becouse you have the freedom to make your millions. thats all it is a capatilist country. So who cares about the underdog, right? Its all about the money. When everything is going good, the U.S. is the place to be. When you have to be challenged you don't like it but then again who cares. Thats why you have to educate your self. This country is going under because we have to many ignorant conservative republicans running it. That needs to change. "Ignorance is taking over! WE HAVE TO TAKE THE POWER BACK!" (zack dela rocha)
Well I think We as Shoppers should BOYCOT! these stores...
In order to show Our support.
Because it affects us all in the long run.....
In order to show Our support.
Because it affects us all in the long run.....
steven west must know who has the cheapest coverage on earth. heh, steve try 45 to 60 dollars a week for coverage. that's 3000 dollars a year for coverage, and that's what my union brothers in calf. are fighting for not to pay, including taking a 3 dollar an hour cut in pay, that's 6250 a year less in wages. can you handle 10000 dollars a year less in your pocket? i think not! since 1981 i've been hearing that it's harder and harder for the union company's to compete with non union companies, well, being union has never hurt thier market share, the companies can't compete with the the profit that the non-union companies make, so, they expect us to suffer so they can make a better profit margin. well, we the UFCW will not suffer at their hands, while corporate greed runs a muck. there now i feel better.
Yes I would support you and have already supported Wal-mart workers so that they may have the health care they are entitled to. UFCW membrs have be contributing money from their checks to organize wal-mart employees for some time now. We want everyone to have health coverage. The answer is not to take away our health coverage but to work towards health coverage for everyone. If we give in to corporate greed, our country is doomed. In ten years we will truly have a two class society. The working poor and the corporate rich. This is not what my country was founded on........Patty
Yes I would support you and have already supported Wal-mart workers so that they may have the health care they are entitled to. UFCW membrs have be contributing money from their checks to organize wal-mart employees for some time now. We want everyone to have health coverage. The answer is not to take away our health coverage but to work towards health coverage for everyone. If we give in to corporate greed, our country is doomed. In ten years we will truly have a two class society. The working poor and the corporate rich. This is not what my country was founded on........Patty
They are asking for $10-15 per week, not $60. get your facts straight.
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Looks like Walmart wins again! They already have a tremendous economic advantage over the food chains involved in this dispute and will win again as customers shift to their stores during the strike. Soon, all retail will start with WALMART!!!
A buddy of mine crossed the picket line at a Ralphs and a Vons, but he didn't have shopping on his mind. He and his girlfriend loaded up two carts of groceries, full of the fun stuff to stock, you know baby food, yogurt, meat, etc., and left the carts at the front door without paying. My wife and I did the same thing, only without meat (don't want anyone getting sick). When we got to the checkstand I proclaimed, "As soon as you get some union employees back in this store I'll pay for these two carts of groceries". You should have seen the looks on their faces as I walked out--priceless!! There was absolutely nothing they could do! I hadn't stolen or vandalized anything. Must have taken the scabs hours to return all of those items. I like to call it "Operation Go-Back". I'm not an employee, so they can't fire me for it. They are disrupting the lives of hard working Americans, so I brought a little disruption into their lives. Can you imagine the effect if all of the friends and family members of union employees did the same thing as a symbol of solidarity?
Thanks for your concern but Vegas is a right to work state and we can all work even if Vegas does strike I am sorry this strike will last a long time and my family will have a good Christmas and yours wont. Don't be a hater because you are afraid to pay a cuple dollars for benifits. You guys already get better benifits than the people in Vegas do. Just think if you didnt pay all the money you do in union dues and you payed for your medical you might actually be saving money in the end. The stike is stupid and what is even more stupid is in a couple weeks none of you will have ANY benefits because the companies do not pay for your benefits when you are not in the store working also, when the union tells you the strike fund has run out you wont be getting your measly 300 dollars either,.. so have fun walking the line remeber it is going to be getting hot out soon.
As the owner of a small business that has provided health insurance for 25 employees for thirty years, I can tell you that Safeway, kroger or any other employer is not the bad guy. My cost, per employee, has increased 525% in the last 10 years. All profit has been absorbed by their health insurance. Should I ask them to share in paying premiums and pay higher deductibles or just close the doors and have everyone look for a new job. I think the strikers (or union) are laying blame on a victim instead of laying blame on the healthcare/insurance system.
lets just start by saying i was a loyal employee and customer of Albertsons for eight years.I thought this company was the best ,then about six monthes ago,everthing changed.first it was benefits than pay . I was a Groc Mgr. making 55,000 a year,also working upwards of 75 hours a week.then the co. changed pay scale for my job to 39,500,but no worry we were grandfathered in,or so i thought.I just thought this fit the pattern to increase profits for such a large company.Unfortunately i live in Florida,aright to work until they fire you state.So all the union people hold strong i khow how tough it is i'am no unemployeed.
You... as a small business operator, I understand your concerns over the high rising premiums you must pay for your employees healthcare benefits, BUT...these are Corporate Giants that we're dealing with. They have the capital to pay for the insurance premiums for their employees. It's corporate greed that is at issue. Both from the insurance companies & from the grocery chains themselves. In the end, it's the shoppers that have to pay for it. There will be probably higher cost on certain goods...but whether we agree or disagree with the union strikers or whatever the outcome may be, the grocery chains themselves will manages to pass the financial burden back to the consumers. So, your argument for the grocery chains being a "victim" is nonsense to me.
October 23, 2003
Michael Hiltzik:
Golden State
SAFEWAY’S MERGER LOSS ECLIPSES LABOR WOES
No one could accuse Steven A. Burd, the chairman and chief executive of Safeway Inc., of shrinking from his role of chief spear carrier for the supermarket companies in their battle with unionized workers in Southern California.
Burd has been a most articulate spokesman for the notion that rising labor costs represent a mortal threat to the industry's profitability. He has backed up that position with hardball negotiations at Vons and other Safeway chains in the U.S. and Canada, sometimes even following through on a threat to shut stores if their unions don't fall into line.
During a recent conference call with a claque of Wall Street analysts, he characterized the employers' attempt to hold down labor costs as "an investment in our future" and predicted that lost sales during the present work stoppage would prove to be "infinitesimal, compared to the cost of not doing this." Capitulating on this contract, he said, could cost Safeway as much as $130 million over its three-year term.
Burd's math inspired me to do some arithmetic of my own. Assuming his figure is right (and I have no reason to doubt it), I calculated that by these terms it would take the company's local unionized workforce the better part of three decades to do as much damage to Safeway's bottom line as Burd did with a single merger deal in 1998.
I am speaking of Safeway's notorious acquisition of the 113-store Dominick's supermarket chain in Chicago. Dominick's was a modestly upscale grocery when Safeway bought it from Yucaipa Cos., a Los Angeles company run by grocery magnate Ron Burkle, for $1.8 billion in cash and assumed debt.
For Yucaipa, which had purchased the chain three years earlier for $693 million, this deal was a windfall. Under its management, sales had grown steadily, although they were flattening out a bit in 1997-98, just before Safeway took over. From that point on, as Safeway later disclosed, business at Dominick's headed straight down.
By the time it placed the chain up for sale last November, Safeway was valuing Dominick's on its own books at about $315 million. That suggests the company squandered more than $1 billion of its shareholders' money on this deal. Compared with that sum, the $130 million that Burd is trying to shave from the local union contract may not exactly be "infinitesimal." But it is, well, way smaller.
I don't wish to suggest by this that the supermarkets give the union everything it wants to settle the current conflict. As I have written before, both sides will probably have to give in on some cherished principles to reach a fair result.
Nor is Safeway the only employer involved. Albertsons Inc. and Kroger Co.'s Ralphs chain are also participating, and both have taken a hard line against their unions here and elsewhere. All three complain that their markets have been invaded by warehouse stores, nonunion groceries and the penny pincher Wal-Mart, and there's no point in denying that these competitors represent a genuine threat.
But there's always more than one way to address a business challenge, and some managements handle them better than others.
That brings us back to Dominick's. Some analysts believe that Burd's first mistake was overpaying. Safeway maintains that it paid a fair market multiple. But by the reckoning of Andrew Wolf, an industry analyst at BB&T Capital Markets in Richmond, Va., who has been a Safeway skeptic, the price came to more than $16 million per store — compared with the $11.3 million per store Safeway paid for Vons in 1997.
That price, Wolf surmises, may have pushed Burd to recover costs quickly by cutting staff and replacing familiar local brands with Safeway house brands. "They took labor out of the stores and put their private-label products in because they get a few more cents' margin from those," Wolf says. "Do that too fast, and it's not going to work."
While shoppers abandoned Dominick's, Safeway's financial reports, which don't normally break out individual chain results, spoke of sunny companywide sales gains, same-store improvements, rising overall profit. But in May 2002, an accounting change forced Safeway to disclose that it had reduced its estimate of Dominick's book value by $589 million since the acquisition.
Six months later, Safeway dropped the other shoe, disclosing that same-store sales and operating profit at Dominick's had been falling steadily for almost as long as Safeway had been in charge. Burd said he would sell the chain unless its workers accepted a pay cut to match the scale at the chain's biggest local competitor.
Safeway wrote down the chain by an additional $788 million, reducing its value to $315 million, and solicited purchase offers. One of these came from Ron Burkle, whose Yucaipa Cos. offered about $350 million to take the limping business off Burd's hands.
(Safeway rejected Yucaipa's bid as inadequate, leading to a lawsuit in which Yucaipa contends that Safeway never intended to take its bid seriously because it would be too embarrassed to return the chain to the original owner at a huge loss.)
Throughout most of this period, by the way, the same Wall Street analysts who now clamor for a lid on Safeway's labor costs gave Burd the benefit of the doubt. With the exception of a few analysts like Wolf, who downgraded Safeway in 2001, most have continued to rate it a buy. This may be a holdover from 1999-2000, when the company's stock doubled to a peak of $62.50. But from there they have ridden the stock down to the current price of about $22.
It's curious how few of these analysts treat the Dominick's debacle as a blot on Burd's management, especially because at least two other Safeway acquisitions — Texas-based Randall's Food Markets and Genuardi's Family Markets in the Philadelphia area — have similarly failed to thrive under its ownership. To be fair, Safeway notes that two other major acquisitions have been quite successful (Vons and Carrs, an Alaska chain) and says the strategic missteps at Randall's and Genuardi's are being worked out.
Still, while Safeway pleads that the poor economy and changes in the supermarket business are the culprits for the profit crunch, Burd is starting to look like the guy who's been through a few ugly divorces: The point comes when you have to wonder whether maybe he's the problem. At a recent round table sponsored by a trade journal, the moderator asked whether it was time for Burd to "step aside." (The consensus was that he still deserves a chance to turn things around in an upbeat economic environment.)
One possible trouble spot is Burd's scorched-earth approach to labor relations, which often boils down to his threatening store closures if he doesn't win. On occasion, this negotiating ploy has worked, although its obvious limitation is that Safeway might eventually run out of stores to close.
But there are signs that it is hampering Safeway's attempt to unload Dominick's. A pending deal with an unidentified buyer reputed to be a Minneapolis grocery chain depends on the union's cooperation, but talks have broken down. Rumors are circulating that Safeway may be planning to keep Dominick's after all, although that would mean dealing again with a highly suspicious union.
If that happens, what would Safeway have gained by treating labor so truculently? Dominick's enjoyed labor peace for years before its acquisition by Safeway; just before the merger, it even stated publicly that it had "never experienced a work stoppage and considers its relations with its employees to be good."
After five years of Safeway management, that idyllic world was a distant memory. Is this really the only way to get costs under control?
Michael Hiltzik:
Golden State
SAFEWAY’S MERGER LOSS ECLIPSES LABOR WOES
No one could accuse Steven A. Burd, the chairman and chief executive of Safeway Inc., of shrinking from his role of chief spear carrier for the supermarket companies in their battle with unionized workers in Southern California.
Burd has been a most articulate spokesman for the notion that rising labor costs represent a mortal threat to the industry's profitability. He has backed up that position with hardball negotiations at Vons and other Safeway chains in the U.S. and Canada, sometimes even following through on a threat to shut stores if their unions don't fall into line.
During a recent conference call with a claque of Wall Street analysts, he characterized the employers' attempt to hold down labor costs as "an investment in our future" and predicted that lost sales during the present work stoppage would prove to be "infinitesimal, compared to the cost of not doing this." Capitulating on this contract, he said, could cost Safeway as much as $130 million over its three-year term.
Burd's math inspired me to do some arithmetic of my own. Assuming his figure is right (and I have no reason to doubt it), I calculated that by these terms it would take the company's local unionized workforce the better part of three decades to do as much damage to Safeway's bottom line as Burd did with a single merger deal in 1998.
I am speaking of Safeway's notorious acquisition of the 113-store Dominick's supermarket chain in Chicago. Dominick's was a modestly upscale grocery when Safeway bought it from Yucaipa Cos., a Los Angeles company run by grocery magnate Ron Burkle, for $1.8 billion in cash and assumed debt.
For Yucaipa, which had purchased the chain three years earlier for $693 million, this deal was a windfall. Under its management, sales had grown steadily, although they were flattening out a bit in 1997-98, just before Safeway took over. From that point on, as Safeway later disclosed, business at Dominick's headed straight down.
By the time it placed the chain up for sale last November, Safeway was valuing Dominick's on its own books at about $315 million. That suggests the company squandered more than $1 billion of its shareholders' money on this deal. Compared with that sum, the $130 million that Burd is trying to shave from the local union contract may not exactly be "infinitesimal." But it is, well, way smaller.
I don't wish to suggest by this that the supermarkets give the union everything it wants to settle the current conflict. As I have written before, both sides will probably have to give in on some cherished principles to reach a fair result.
Nor is Safeway the only employer involved. Albertsons Inc. and Kroger Co.'s Ralphs chain are also participating, and both have taken a hard line against their unions here and elsewhere. All three complain that their markets have been invaded by warehouse stores, nonunion groceries and the penny pincher Wal-Mart, and there's no point in denying that these competitors represent a genuine threat.
But there's always more than one way to address a business challenge, and some managements handle them better than others.
That brings us back to Dominick's. Some analysts believe that Burd's first mistake was overpaying. Safeway maintains that it paid a fair market multiple. But by the reckoning of Andrew Wolf, an industry analyst at BB&T Capital Markets in Richmond, Va., who has been a Safeway skeptic, the price came to more than $16 million per store — compared with the $11.3 million per store Safeway paid for Vons in 1997.
That price, Wolf surmises, may have pushed Burd to recover costs quickly by cutting staff and replacing familiar local brands with Safeway house brands. "They took labor out of the stores and put their private-label products in because they get a few more cents' margin from those," Wolf says. "Do that too fast, and it's not going to work."
While shoppers abandoned Dominick's, Safeway's financial reports, which don't normally break out individual chain results, spoke of sunny companywide sales gains, same-store improvements, rising overall profit. But in May 2002, an accounting change forced Safeway to disclose that it had reduced its estimate of Dominick's book value by $589 million since the acquisition.
Six months later, Safeway dropped the other shoe, disclosing that same-store sales and operating profit at Dominick's had been falling steadily for almost as long as Safeway had been in charge. Burd said he would sell the chain unless its workers accepted a pay cut to match the scale at the chain's biggest local competitor.
Safeway wrote down the chain by an additional $788 million, reducing its value to $315 million, and solicited purchase offers. One of these came from Ron Burkle, whose Yucaipa Cos. offered about $350 million to take the limping business off Burd's hands.
(Safeway rejected Yucaipa's bid as inadequate, leading to a lawsuit in which Yucaipa contends that Safeway never intended to take its bid seriously because it would be too embarrassed to return the chain to the original owner at a huge loss.)
Throughout most of this period, by the way, the same Wall Street analysts who now clamor for a lid on Safeway's labor costs gave Burd the benefit of the doubt. With the exception of a few analysts like Wolf, who downgraded Safeway in 2001, most have continued to rate it a buy. This may be a holdover from 1999-2000, when the company's stock doubled to a peak of $62.50. But from there they have ridden the stock down to the current price of about $22.
It's curious how few of these analysts treat the Dominick's debacle as a blot on Burd's management, especially because at least two other Safeway acquisitions — Texas-based Randall's Food Markets and Genuardi's Family Markets in the Philadelphia area — have similarly failed to thrive under its ownership. To be fair, Safeway notes that two other major acquisitions have been quite successful (Vons and Carrs, an Alaska chain) and says the strategic missteps at Randall's and Genuardi's are being worked out.
Still, while Safeway pleads that the poor economy and changes in the supermarket business are the culprits for the profit crunch, Burd is starting to look like the guy who's been through a few ugly divorces: The point comes when you have to wonder whether maybe he's the problem. At a recent round table sponsored by a trade journal, the moderator asked whether it was time for Burd to "step aside." (The consensus was that he still deserves a chance to turn things around in an upbeat economic environment.)
One possible trouble spot is Burd's scorched-earth approach to labor relations, which often boils down to his threatening store closures if he doesn't win. On occasion, this negotiating ploy has worked, although its obvious limitation is that Safeway might eventually run out of stores to close.
But there are signs that it is hampering Safeway's attempt to unload Dominick's. A pending deal with an unidentified buyer reputed to be a Minneapolis grocery chain depends on the union's cooperation, but talks have broken down. Rumors are circulating that Safeway may be planning to keep Dominick's after all, although that would mean dealing again with a highly suspicious union.
If that happens, what would Safeway have gained by treating labor so truculently? Dominick's enjoyed labor peace for years before its acquisition by Safeway; just before the merger, it even stated publicly that it had "never experienced a work stoppage and considers its relations with its employees to be good."
After five years of Safeway management, that idyllic world was a distant memory. Is this really the only way to get costs under control?
Isn't this the usual story? The only way to stop it is to fight back.
Don't Mourn, Organize!
Don't Mourn, Organize!
"Would it matter to you if I lost my benefits? Would you starve yourself and your children to support making my boss provide us with low cost benefits?"
Yes.
No one starves as we pull together.
Yes.
No one starves as we pull together.
Yes, you are not on strike, but why would you shun people who work for the same organization you do? Tens of thousands of union workers are on strike in California and other states because the corporation wants to take away their hard earned wages to fund the health "benefits" the company promised them when becoming employees. "Health Benefits" are there so that working people are not forced to pay thousands each year for health coverage..these people should not be forced to obtain a second job to ensure they can afford medical benefits. Many of these people striking have been working for these grocery stores for many years...they are not all high school or college students looking for a few extra dollars in their pockets. What about the pension plans most people have been saving for? Should people planning to retire turn to the state of their residency (California is in debt by the way) hoping it will pay for medical expenses and money to survive the rest of their years on? The pensions were put in place so that retirees would not have to live in poverty after they retire...they worked hard to make these stores what they are today. It is not the CEO or President of any of these stores who make the customers happy or work hard to support their families...they make hundreds of thousands if not millions a year sitting behind a desk or at a corporate meeting planning ways to save the company money...just to fill their already "deep" pockets. So, as you sit back this Christmas watching your family open their gifts....maybe you should think about the people out of work on strike (perhaps they will not be paid because the union WILL have run out of money) fighting for their fair treatment and benefits...and don't forget future generations of workers they are also fighting for. You might also think about the fact that Nevada could be financially hurt by this also...your striking neighbors in California are not making as much money before....so how are they going to gamble and contribute to the state of Nevada...Happy Holidays!!!!!!
Yes, you are not on strike, but why would you shun people who work for the same organization you do? Tens of thousands of union workers are on strike in California and other states because the corporation wants to take away their hard earned wages to fund the health "benefits" the company promised them when becoming employees. "Health Benefits" are there so that working people are not forced to pay thousands each year for health coverage..these people should not be forced to obtain a second job to ensure they can afford medical benefits. Many of these people striking have been working for these grocery stores for many years...they are not all high school or college students looking for a few extra dollars in their pockets. What about the pension plans most people have been saving for? Should people planning to retire turn to the state of their residency (California is in debt by the way) hoping it will pay for medical expenses and money to survive the rest of their years on? The pensions were put in place so that retirees would not have to live in poverty after they retire...they worked hard to make these stores what they are today. It is not the CEO or President of any of these stores who make the customers happy or work hard to support their families...they make hundreds of thousands if not millions a year sitting behind a desk or at a corporate meeting planning ways to save the company money...just to fill their already "deep" pockets. So, as you sit back this Christmas watching your family open their gifts....maybe you should think about the people out of work on strike (perhaps they will not be paid because the union WILL have run out of money) fighting for their fair treatment and benefits...and don't forget future generations of workers they are also fighting for. You might also think about the fact that Nevada could be financially hurt by this also...your striking neighbors in California are not making as much money before....so how are they going to gamble and contribute to the state of Nevada...Happy Holidays!!!!!!
I don't understand this Becuase of two parties that can't make up their mind I have to suffer with that fact the my husband is gone. I have to deal with the fact that it is ripping me apart I only get to speak with him for 20 mins every 3-4 days. and that kills me albertsons you should give in and help the people who need your help and workers you should give in a little and compermise with albertsons so that the people who are suffering like me can have their loved ones back. I am only 17 and I worked at albertsons for 2 years then quit becuase of the treatment. I have not been married long to my husband and I miss him terribly. please work things out soon so he can come home. Always Lainie. Beaverton,OR
This fucking guy gambled, fucked up and now he's attacking the workers. This punk should be out of work or out of it completely. The attack should turn to him and all capitalists!
Safeway's profit margin went down so now they feel like it is time to break the back of the workers by cutting benefits. Steve Burd & his gang of corporate misfits should lower there pay, cut their bonuses and make themselves see what it feels like to be a middle class working American with no medical benefits wondering, feed my family or pay my medical insurance bill.... This is bullshit and they know it!!!! Stand tall union brothers and sisters!!!! United as one we will percevere.... We will win!!! God bless us all!!!!
I believe that you don't need to starve your family, but you can go to other independents.... We need to unite as one so that we can't be run over by the greedy bastard ceo's that run so many companies today... I wouldn't starve my family, but I sure as hell wouldn't cross over your picket line either.....
First off Steve, only a moron would think that Union members would be on strike over refusing to pay $60.00 per year. This figure is Corporate America speaking, just like these three Corporations would hope an ignorant public/consumer would believe. Our medical is a gigantic potential loss far in excess of what most know about, but it is the two-tier wage & benefit package that adds insult to injury. New employees would be hired the minute the contract was signed at considerably lower wages with few benefits. That is why you keep hearing the Corporations saying they offered a terrific contract to the "current employees"... with the new two-tier in place, current employees would be grandfathered... in Corporate language, that means a short lived employee on their way out by any means possible. We know this as a fact because we have had to live the consequences of previous grandfathering contracts in non-foods & meat depts.. Get yourself informed Steve. The Corporations are far more like communism... the union is its members, not an office, and we are united for the cause of a fair and reasonable living wage. In communism, we would be shot for daring to stand up to the system. With the three CEO's salaries & compensations ranging from 11 to 13 Million dollars, I think they can start cutting from the top and move their way down, but that would be assuming that any of these three Corporations were in financial difficulty. They are immensely profitable, so there goes that excuse. The rest boils down to Corporate greed where enough is never enough. You, as well as these Corporations need to realize that the consumer and the employee are one and the same person. You can't expect more consumers, and more money from each consumer, if Corporate America cuts all our wages or ships our jobs over to China, India, or Mexico. Plain and simple, Corporate America is so wealthy it is obscene. Trust me, they love victims like you that believe that the working man should be living in cardboard boxes... If you haven't been to Mexico lately, go take a visit and see how our own Corporations improved the quality of life for the Mexican population. They may have moved our jobs to Mexico, but those poor people still live in Cardboard boxes while the Corporations & CEO's just buy a few more mansions, and add a few more billions to their pockets every month. If you don't stand up now Steve, even if you are not in the grocery business, I hope you realize before it is too late.... if we lose, it is just a matter of time before you and everyone else will lose.
Keep up the good work.... the more the merrier on "mission go-backs" plan !!! We much appreciate your support... labor is being kicked in the teeth by these highly profitabe Corporations, CEO's making 11 to 13 million dollars each... they have gone far beyond the biting the hands that feeds them...
You, as a small business owner, are precisely in the same position as the workers that man the front lines for these three Grocery Stores. If you stayed up on your current events, you would know that this strike is not about the employees, or our customers, or the stores themselves. We are merely what funds and enables the immensely profitable Corporations with the power that is afforded to them by the tens of millions in net profits they use against us. They hope that you and I are too ignorant to realize that the employee and the consumer are one and the same person. While they clammor for more market share, more consumers and more consumer dollars, they cut labor, labor expenses, and then act suprised that we as employees are not enabled as a consumer. Wake up small business, you are being squeezed to death just like we are... you think your insurance cost are high now... one of the biggest reasons costs are increasing is because the number of Corporations paying into the system is getting smaller and smaller... if the Corporations have their way, we will be the only ones paying for everything... hense the Wal-Mart plan... pay minimun wage, offer medical that is entirely employee paid with little to no coverage, and then hand out the paperwork for food stamps, medical, and welfare, refuse to pay overtime, and discriminate against women in pay and promotions, and then hire illegals to pay even less .... then when your image is ruined, hire a PR firm to put out a bunch of TV commercials to talk about how wonderful Wal-Mart is, as opposed to just doing the right thing and fixing your obscene business practices.... thanks Wal-Mart family, 4th wealthiest family in the world... thanks for thinking about low prices, but please, raise your prices to pay a living wage if necessay... just count me out of subsidizing your already filthy rich family & Corporation by paying my hard earned taxes to subsidize your employees impoverished wages!!! To ALL small businesses... and ALL of our customers... we gratefully thank you for your support... before, during, and after the strike... please remember, we are consumers too, this is not about who pays who's salaries, or what I have compared to what you have. It is about standing up and saying " I am mad as Hell, and I am not taking any more cuts in pay while the cost of living in California has gone through the roof "... It is not unreasonable that we expect to maintain our current wage & benefits... and please, stop assuming that we are morons that are fighting because we don't want to pay $5 to $15 for insurance... that is the Corporations talking. Our fight is considerably more extensive than that, we are just trying not to negotiate our contract in the Media. This is not some mud slinging Political campaign, even if the Corporations are attempting to make it such. We are fighting the Corporations.... we do not want to do harm to our businesses, our customers, or ourselves.... when this is all said and done, we have to have a business to go back to.... and when we do, it will still be the same business that funds the Corporations, not the other way around.... we can do just fine without them, they are nothing, and have nothing without us.... "we the people are the government"... "we the employees are the consumers"... the power remains in the masses as it alway has been..... With Corporate CEO's salaries between 11 & 13 Million dollars each, and this is just the top Corporate Executive only, I think their is plenty of room to cut labor cost from the top and work there way down if they are so worried that their $10's of Millions in net profits aren't sufficient.
Evrything comes from the top. Like i ahve said before this is capitalist country. THe elitist do not care about your benifits as long as they make money. If you want change we need to change this country from capatalist to a domocracy because we do not have that. no matter what you think. everything is driven by money. Do you remember REAGONOMIX well its happening again with BUSH. He is giving the RICH the TAX BREAKS. THis littel strike is not going to make the difference. You have to take on the big guy. Use ur 70,000 workers and the public to protest than we can expect change. also watch Bowling for colombine. See how socialist Canada works. Everyone gets all their medical bills taken care of they never see one bill. No talks about contribute to your premium. We need to change the government back to what it wanted to be and have at leat a welfare liberal in office. LIke MLK said " I HAVE A DREAM THAT ONE DAY THIS NATION WILL LIVE OUT THE TRUE MEANING OF ITS CREED"!I hope none of the strikers voted for bush because then their the morones that cut their own benefits.
Hey, that's a new one for me---Canada is now socialist. Cool, but since when? If you're right, I'm going right now. My fantasy come true: No bosses, production decided by factory and workplace soviets (councils), no money 'cuz "from each according to her ability, to each according to his need," no cops, no standing army. Damn, a liberated, communalistic society. I've been waiting all my life for that.
I'm leaving now. CANADA HERE I COME, WELCOME ONE MORE OF YOUR COMMUNARD SONS COMING HOME. LONG LIVE SOCIALISM IN ONE COUNTRY!!!
I'm leaving now. CANADA HERE I COME, WELCOME ONE MORE OF YOUR COMMUNARD SONS COMING HOME. LONG LIVE SOCIALISM IN ONE COUNTRY!!!
Why don't you get your fucken facts right you stupid ass. Do you really think i'd rather be out on the picket line instead of with my 3 kids, to fight for a 5-15 dollar co-pay WAKE_UP. You need to read on the facts before you speak. I'll take a wild guess you saw in the ad that they paid 500 thousand dollars to print. Hum I guess that makes it fact. Not. OPEN YOUR EYES PEOPLE. It affects more than you think by shopping in these store. SO STAY OUT PLEASE............
You guys are great. I wish you the best.
Didn't know that Canada had abolished capitalism. But if it really did, I'm heading up there.
Damn, my dream. No bosses. No money. Just UTOPIA.
GWN
Damn, my dream. No bosses. No money. Just UTOPIA.
GWN
(Cluade ) I think you hit the nail in the head with everything your saying. I hope your words get too some of these people and make them open there eyes. I think if they were to walk in our shoes for one day they would see the hell we have deal with from directors. We are being arrested for nothing more than breathing. One thing I do want to say to all the people that have stayed away from our stores. You guys are the best and I have nothing but respect for you for doing whats right. We don't want to hurt anyone we just want the best for our families and our future. GOD BLESS EVERYONE.
Thats just what you are. I dont even have words for you.
HI,
just wanted to chime in with full support for the workers striking in defense of their benefits. Anyone who has doubts about the legitamacy of the crisis and who feels too inconvenienced by the strike, might appreciate some common sense when thinking about this clash like this: who is in the position of power? Who usually makes the terms that define a workplace - workers or owners? At what point, such as envidenced by SSI and welfare reciepiants working for Wal-Mart, is it impossible, intolerable, unjust and unfair to accept self-destructive terms?
I applaud the CA UFCW, its members and its leadership for taking on the wrenching hardship - both materially and psychologically - of a strike. May success come to the aid of justice. I'm shopping elsewhere for now (not Wal-Mart), which is a small price to pay for an environment in which workers have some voice.
Thank you.
Misha
just wanted to chime in with full support for the workers striking in defense of their benefits. Anyone who has doubts about the legitamacy of the crisis and who feels too inconvenienced by the strike, might appreciate some common sense when thinking about this clash like this: who is in the position of power? Who usually makes the terms that define a workplace - workers or owners? At what point, such as envidenced by SSI and welfare reciepiants working for Wal-Mart, is it impossible, intolerable, unjust and unfair to accept self-destructive terms?
I applaud the CA UFCW, its members and its leadership for taking on the wrenching hardship - both materially and psychologically - of a strike. May success come to the aid of justice. I'm shopping elsewhere for now (not Wal-Mart), which is a small price to pay for an environment in which workers have some voice.
Thank you.
Misha
HI,
just wanted to chime in with full support for the workers striking in defense of their benefits. Anyone who has doubts about the legitamacy of the crisis and who feels too inconvenienced by the strike, might appreciate some common sense when thinking about this clash like this: who is in the position of power? Who usually makes the terms that define a workplace - workers or owners? At what point, such as envidenced by SSI and welfare reciepiants working for Wal-Mart, is it impossible, intolerable, unjust and unfair to accept self-destructive terms?
I applaud the CA UFCW, its members and its leadership for taking on the wrenching hardship - both materially and psychologically - of a strike. May success come to the aid of justice. I'm shopping elsewhere for now (not Wal-Mart), which is a small price to pay for an environment in which workers have some voice.
Thank you.
Misha
just wanted to chime in with full support for the workers striking in defense of their benefits. Anyone who has doubts about the legitamacy of the crisis and who feels too inconvenienced by the strike, might appreciate some common sense when thinking about this clash like this: who is in the position of power? Who usually makes the terms that define a workplace - workers or owners? At what point, such as envidenced by SSI and welfare reciepiants working for Wal-Mart, is it impossible, intolerable, unjust and unfair to accept self-destructive terms?
I applaud the CA UFCW, its members and its leadership for taking on the wrenching hardship - both materially and psychologically - of a strike. May success come to the aid of justice. I'm shopping elsewhere for now (not Wal-Mart), which is a small price to pay for an environment in which workers have some voice.
Thank you.
Misha
HI,
just wanted to chime in with full support for the workers striking in defense of their benefits. Anyone who has doubts about the legitamacy of the crisis and who feels too inconvenienced by the strike, might appreciate some common sense when thinking about this clash like this: who is in the position of power? Who usually makes the terms that define a workplace - workers or owners? At what point, such as envidenced by SSI and welfare reciepiants working for Wal-Mart, is it impossible, intolerable, unjust and unfair to accept self-destructive terms?
I applaud the CA UFCW, its members and its leadership for taking on the wrenching hardship - both materially and psychologically - of a strike. May success come to the aid of justice. I'm shopping elsewhere for now (not Wal-Mart), which is a small price to pay for an environment in which workers have some voice.
Thank you.
Misha
just wanted to chime in with full support for the workers striking in defense of their benefits. Anyone who has doubts about the legitamacy of the crisis and who feels too inconvenienced by the strike, might appreciate some common sense when thinking about this clash like this: who is in the position of power? Who usually makes the terms that define a workplace - workers or owners? At what point, such as envidenced by SSI and welfare reciepiants working for Wal-Mart, is it impossible, intolerable, unjust and unfair to accept self-destructive terms?
I applaud the CA UFCW, its members and its leadership for taking on the wrenching hardship - both materially and psychologically - of a strike. May success come to the aid of justice. I'm shopping elsewhere for now (not Wal-Mart), which is a small price to pay for an environment in which workers have some voice.
Thank you.
Misha
Hey Rocio,
By the way you write and think we either have to guess that you're a 12 year old or that you're not working with a full deck. And anyone who would call Canada "socialist" would also probably think that Gray Davis was an anarcho-syndicalist. Get your head out of your ass and get back to school to learn to spell, let alone think.
>>Thats just what you are. I dont even have words for you.<<
What, cat got your tongue?
CM
By the way you write and think we either have to guess that you're a 12 year old or that you're not working with a full deck. And anyone who would call Canada "socialist" would also probably think that Gray Davis was an anarcho-syndicalist. Get your head out of your ass and get back to school to learn to spell, let alone think.
>>Thats just what you are. I dont even have words for you.<<
What, cat got your tongue?
CM
i would first like to say that i was very miss informed about the lockout and i am very sorry. I found out by just open my mind to the locked out workers that they are just like me . Someone who wants to work and take care of their families. I don't understand how we can stand by and let them fight this fight alone. What does it hurt to drive an extra 2 minutes to go somewhwere else. At least these people work. would you just give up if put your heart into your job and someone took it away? I'm tired of people turning their backs on each other, So to everyone who has had to deal with people like me im very sorry, but yet happy you made me see the light about this very important fight. Its not the store that makes the store it's the people in the store love you all. GOD BLESS YOU GUYS.
Do not bring god into this thats retarded. Just like you? how much do you pay for health care? how much education do you have? what kind of job do u do. Is it a job or a career? Please they are just taking a free ride.
Solidarity Forever!!!
if albertsons lost 1 billion dollars that would be less than 1 percent of their total earnings in a year. they could already be paying for health benefits but instead they want more money in their pocket. I promise you that if things keep going this way eventually it will be like the old days. the middle class will be gone. With out the middle class you don't have the much of a country
You think that you don't have to worry about your stores going on strike, but you'll get your turn. Dont hate Cali just because you guys get paid alot less than than we do. You think the strike isn't affecting you, but it will. You are just being ingnorant and stupid. I bet you wouldn't come out here and say this to our faces, cuz you'll get dropped!
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