New Contract Improves Retention at Stater Bros.

ELLIOT ZWIEBACH

COLTON, Calif. — Stater Bros. Markets has seen a drop in its monthly turnover rate since it signed a new labor contract six months ago that eliminated two-tier hiring and provided wage increases, Jack Brown, chairman and chief executive officer, said here last week.

“Our objection to the old contract was the high turnover rate it caused at the entry level, where people had to wait 18 months to get any sort of pay increase,” he said.

“Stater has traditionally had the lowest turnover rate among Southern California chains [including Albertsons, Ralphs and Vons], but our rate of turnover doubled under the old contract, and we weren't getting the best people because they didn't want to wait 18 months for a wage increase.

“But after six months under the new agreement, we've seen our turnover rate drop every month, and we're now approaching our normal level prior to the two-tier contract.”

Stater negotiated the new contract prior to its expiration last February, while the three major chains did not reach agreement on a contract with similar terms until last month.

Brown said he anticipates productivity increases among employees in the next few months, given their positive attitudes as the Sept. 8 move into new offices in San Bernardino draws closer (see Page 12).

Asked about the impact of inflation, Brown said it's been moderate for Stater, aside from dairy, “and what we've seen we've been able to pass along, and our competitors are not resisting doing the same,” he added.