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CHAINS REJECT UNION PROPOSAL

LOS ANGELES -- The union blinked last week, but the three major Southern California employers just stared back impassively -- and the 17-week-old strike went on.An offer by the United Food and Commercial Workers Union to submit the issues in the ongoing dispute to binding arbitration and allow 70,000 union members to return to work was rejected outright by Albertsons, Kroger-owned Ralphs and Safeway

LOS ANGELES -- The union blinked last week, but the three major Southern California employers just stared back impassively -- and the 17-week-old strike went on.

An offer by the United Food and Commercial Workers Union to submit the issues in the ongoing dispute to binding arbitration and allow 70,000 union members to return to work was rejected outright by Albertsons, Kroger-owned Ralphs and Safeway less than two hours after the union made the offer at a press conference.

"Today's announcement suggesting arbitration is just another effort to shift the focus away from the UFCW's apparent inability to find a negotiated settlement to this labor dispute," the chains said in a joint statement.

Noting the two sides have been able to resolve some issues with the help of a federal mediator "who has already become conversant with the complicated issues confronting us," the chains dismissed the notion that "an outsider who is completely unfamiliar with the issues" could be of much help four months into the strike-lockout.

The employers said they have asked the federal mediator to invite the UFCW to resume negotiations. "Labor disputes are resolved by face-to-face negotiations with people familiar with the issues. It's time for the union to realize that a solution to this lengthy labor dispute can only be reached if both sides are willing to devote the time at the bargaining table to hammer out realistic solutions to the difficult challenges confronting our industry," they said in the joint release.

The union responded with a formal statement of its own: "We take [the employers' rejection] to be an admission that their proposals would not stand the scrutiny of binding arbitration. ...

"On Dec. 19, the last time we had formal negotiations, the unions offered a comprehensive proposal that included hundreds of millions of dollars in savings for the employers. [But] ... they immediately rejected our proposal without significant consideration. ...

"We stand ready to negotiate at a moment's notice ... and remind the three companies that successful negotiations require compromise by both parties."

Earlier that day, the union had issued a statement at its press conference that said, in part, "We propose an immediate end to the strike and lockouts, with all replacement workers being terminated and all striking and locked-out workers returning to work immediately.

"This proposal will put the companies' intentions to the test. We call upon the heads of Vons, Ralphs and Albertsons to unite with us in finding a third party -- an independent arbitrator -- who will conclude this historic struggle in the interests of justice and compassion, as well as the economic interests of all concerned.

The labor dispute began Oct. 11, 2003, six days after the union's three-year contracts with the chains expired, when the union struck 283 Safeway-owned Vons and Pavilions units. A day later, Albertsons locked employees out of 272 stores and Ralphs locked employees out of 302 stores, though Ralphs lifted all pickets on Oct. 31.

At issue in the dispute is whether employees will be required to contribute more to their health care plans, and whether the employers will be able to create a second tier of employees with lower wages and health care benefits.

In another strike-related development last week, the California attorney general filed suit against the three employers in U.S. District Court here, charging them with violating antitrust laws by signing a revenue- and cost-sharing agreement. The complaint seeks a preliminary injunction barring the chains from implementing the agreement.

According to the complaint, the agreement falls outside the bounds of any existing immunity from antitrust enforcement for two reasons: It includes a supermarket [Kroger-owned Food 4 Less] that is not involved in the strike-lockout; and it specifies that the agreement remain in effect for at least two weeks after the strike ends.

In their joint statement, the chains said they were disappointed by Lockyer's action. "His contention that this agreement has caused prices to rise and consumers to be harmed is simply wrong. The lawsuit is without merit, and we look forward to presenting our case in court."