WEST SACRAMENTO, Calif. — Declaring that negotiations have “dragged on far too long,” Raley’s here said Tuesday that it would no longer extend the contract of its union workers and has presented a “last, best and final” contract offer.
Modesto, Calif.-based Save Mart, which has been in negotiations with the same group of three United Food and Commercial Workers locals in Central and Northern California, said it would terminate its union contract May 9.
Union members at stores owned by Safeway are still covered by an ongoing extension of the previous contract, which expired in October. Either side may cancel this arrangement after giving notice seven days in advance.
“We strongly believe our last and final offer will be acceptable to our employees because the cost reductions and efficiencies we are seeking are similar to cost reductions that our employees in our non-union stores and corporate office have already taken or will soon take,” a Raley’s spokesman told SN Tuesday. “We have never sought reductions to the regular hourly wages or the pension plan nor will we in our final offer. We do not expect the employees to vote for a strike because our employees do not want to go on strike as they understand that their future and our company's future depends upon Raley’s becoming more efficient so we can better compete.”
UFCW Locals 5, 8 and 648 (the latter has no contracts with Raley’s) said they would meet to consider the offer and take a strike vote. They said all companies were proposing cutbacks in employee health benefits, elimination of health care for retirees, reductions in take-home pay and other takeaways.
