Newswatch 2009-11-23

LOCAL 99, CHAINS AVERT STRIKE

PHOENIX — Only hours before a threatened strike, union workers at Safeway, Fry's and Smith's stores here reached tentative agreement with employers on a three-year contract, officials said. The agreement ends 13 months of negotiations between the retailers and United Food and Commercial Workers Local 99. The chains and union declined to provide details of the contract until after membership votes, which are expected to take place in the coming weeks.

DOLLAR GENERAL SOARS IN IPO

GOODLETTSVILLE, Tenn. — Stock in Dollar General Stores here soared on its of first day of trading on the New York Stock Exchange since being taken private in 2007. The retailer said its initial public offering Nov. 13 would raise net proceeds of $445.2 million after commissions and expenses. The company said it would use those proceeds to pay off a portion of its debts. Dollar General was taken private by the buyout firm KKR two years ago. The stock hit the market priced at $21 per share and was trading near $22.50 a share late last week, up around 8%.

COLORADO WORKERS VOTE ON OFFER

DENVER — Union supermarket workers here last week were considering a “last, best and final offer” submitted by Kroger and Safeway, according to United Food & Commercial Workers Local 7. According to a copy of the final offer submitted by Kroger's King Soopers chain, workers with at least one year of continuous service prior to the ratification are being offered ratification bonuses of $1,000, $500 or $400 in store gift cards, depending on their classification. The 52-month contract also calls for wage increases and additional health care bonuses, according to Kroger. Safeway's offer to workers also includes a bonus, reports said. Over the course of lengthy negotiations, workers have threatened to strike Safeway but have not received approval from the UFCW headquarters in Washington.

TOPS PLANS TO OPEN NEW STORE

WILLIAMSVILLE, N.Y. — Tops Friendly Markets here last week unveiled plans to open its first new store since it returned to local ownership in 2007. Construction at the new store — a former IGA in Spencerport, N.Y., that closed four years ago — is to begin next spring and be complete by summer, Tops said. The renovation will include full-service deli, bakery, floral, seafood, meat and prepared-food departments, as well as a fuel station, the company said.

A&P RECOGNIZED FOR STEWARDSHIP

NEW YORK — A&P, Montvale, N.J., was awarded the Environmental Stewardship Program of the Year at the 6th Annual Stevie Awards for Women in Business here. The Stevie Awards for Women in Business is an international competition in 54 categories recognizing the accomplishments of outstanding women executives, business owners and the organizations they run. A&P's sustainability team, led by Jennifer MacLeod, senior vice president, marketing and communications, examined every facet of the business in 2008 and 2009 to improve A&P's environmental efforts, capturing current practices, researching industry trends, meeting with sustainability experts and developing programs to help preserve the environment and conserve natural resources, said Nicole Amato, a spokeswoman for the Stevie Awards.