ALBERTSONS SEEKING PAYMENTS FOR PRODUCT RECALLS
ssessing fees to suppliers whose products are recalled, a Florida newspaper reported last week. According to a letter the retailer sent to its suppliers, Albertsons noted a substantial increase in product recalls over the last five years and said the cost of market withdrawals has become a significant burden, the Tallahassee (Fla.) Democrat reported. Fees will vary on the scope of the recall, according to the report. If half of Albertsons' eight regional divisions are affected, the fee will be $12,000. If more than half of the divisions are involved, the cost will be $24,000. If notice of the recall is received after hours, a 10% fee will be added. Albertsons could not be reached for comment. Albertsons last month had sent a letter to suppliers demanding justification for price increases.
TESCO PURCHASES STAKE IN CHINA HYPERMARKET CHAIN
LONDON -- Tesco here last week said it has signed an agreement to purchase a 50% stake in Taiwan-based hypermarket chain Hymall for $260 million in cash. The deal represents Tesco's first expansion into China, where Hymall operates 25 stores, mainly in eastern and northern China. Hymall is a subsidiary of food company Ting Hsin International Group. The deal is expected to close in four months, Tesco said.
SHAW'S BEGINS 'REPOSITIONING' AMID UNION OBJECTIONS
WEST BRIDGEWATER, Mass. -- Shaw's here last week began what it termed a "staff rebalancing," offering more than 200 workers new positions within the company or part-time work, in a move denounced by union leaders. Peter Derouen, spokesman for the United Food and Commercial Workers Local 791, South Eaton, Mass., told SN that affected employees are being offered lower-rated full-time work, adding that full-rated general duty clerks would be most affected. Shaw's and Local 791 are currently in talks for a new contract.
LABOR BOARD CALLS FOR WAL-MART, UNION HEARING
WINNIPEG, Canada -- The Manitoba Labour Board here last week said it would hold a three-day hearing in August to determine the size and scope of a bargaining unit for a Wal-Mart store in Thompson, published reports said. Workers there held a union vote on June 4, but Wal-Mart Stores, Bentonville, Ark., challenged the size of the bargaining unit. Wal-Mart and United Food and Commercial Workers Local 832 will present their cases before the Labour Board Aug. 4-6. Last year, Thompson workers defeated a bid to organize in a 61-54 vote that would have made the Thompson store the first unionized Wal-Mart in North America.
U.S. CHAMBER BACKS WAL-MART'S CLASS-ACTION APPEAL
WASHINGTON -- The U.S. Chamber of Commerce last week filed court papers that support Wal-Mart's objection of class-action status for a sex-discrimination suit, reports said. The U.S. Chamber said class-action status should be overturned because it would open numerous businesses to similar suits and pressure companies to settle. A San Francisco judge last month granted class-action status to a discrimination suit that could represent as many as 1.6 million current and former Wal-Mart employees. The Bentonville, Ark.-based retailer has appealed the ruling.
AHOLD OBJECTS TO CANICA PRICE FOR ICA
ZAANDAM, Netherlands -- Ahold last week said it had received word from Canica, its partner in the Scandinavian joint venture ICA, that Canica has exercised its put option, obliging Ahold to buy its 20% stake in the venture. However, Ahold said it disagreed with Canica's price of approximately $1.36 billion. The price for the shares must be agreed upon according to terms of the joint venture, Ahold said.
