NEW CONTRACTS BRING MORE JANITORS IN-HOUSE

ELLIOT ZWIEBACH

LOS ANGELES -- Supermarket chains in southern California have agreed to move a larger portion of their janitorial staffs in-house, bucking a long-term national trend toward increasing use of subcontractors.

In addition, all chains agreed to pay janitors union wages and, when third parties are used, to use only subcontractors who agree to pay union-level wages and benefits.

The new contracts cover employees of Service Employees International Union Local 1877, which represents 22,000 janitors in four southern California counties, including approximately 2,100 who work in area supermarkets.

According to David Stillwell, southern California director for Local 1877, the contracts, which were ratified earlier this month, reverse a 15-year trend toward subcontracting of janitorial services to third-party companies, many of which were non-union and paid low-level wages. He told SN the agreements have already piqued the interest of other SEIU locals in San Diego and northern California

The contracts, which cover janitors working at Albertson's, Gelson's, Ralphs, Stater Bros., Vons and smaller chains, call for upgrades in janitors' working conditions as well as for improved pay scales.

Under the agreements, wages for janitors will move from $9.71 an hour to $11.31 in four increments of 40 cents per year over the next four years. The hourly boost of $1.60 compares with a single 45-cent increase and a $300 bonus in the last contract, which expired Jan. 21, Stillwell pointed out.

In addition, the new contracts include language that limits the amount of services that will be subcontracted, Stillwell said, with chains agreeing to replace non-union subcontractors with union subcontractors by January 2003; they also ensure that union conditions will be maintained in the stores, even if services are contracted out, Stillwell said.

For its part, the SEIU agreed to withdraw as a co-plaintiff in a class-action lawsuit filed in December against the chains and their subcontractors on behalf of janitors who claimed the employers were violating state and federal wage and labor laws by forcing them to work excessive hours without overtime pay, breaks, vacations or sufficient days off.

Under the new four-year agreements, according to Stillwell:

Three chains -- Ralphs Grocery Co., a division of Kroger Co., Cincinnati; Stater Bros. Markets, Colton, Calif., and Gelson's Markets, Encino, Calif. -- will employ at least 75% of janitors in-house while outsourcing the other 25%. Prior to the agreement, Ralphs outsourced janitorial services at less than 10% of its stores, Stillwell said. Gelson's said it did not use subcontractors, and Stater said it hired janitors on an in-house basis or used union subcontractors.,

Jack Brown, chairman, president and chief executive officer of Stater Bros., said his company has always employed its own janitors. However, when it acquired 43 stores in 1999 from Albertson's, janitors at those stores were subcontracted, he said. He said 20 of those stores have subsequently been converted, while the other 23 are subcontracted to union companies, and the company is working to convert them as well, Brown told SN.

A Gelson's executive said his company used subcontractors at a handful of stores about 10 years ago, but was disastified with their performance and brought the jobs back in-house.

Ralphs could not be reached for comment.

Vons, a division of Safeway, Pleasanton, Calif., will maintain a certain percentage of janitors on an in-house basis, including returning subcontracted janitors at 20 stores back to in-house status, and employ 35% of janitors at new stores in-house and the balance from union subcontractors. Prior to the new agreement, Vons was outsourcing janitors at more than half its stores, he said.

Debra Lambert, director of corporate communications for Safeway, said Vons and Safeway were not aware of any alleged labor violations by the subcontracting companies. "There was a lot of conjecture, and we felt [agreeing to the new contract] was the appropriate thing to do."

Albertson's, Boise, Idaho, will maintain 23% of janitors in-house for the term of the agreement, plus 23% of janitors at new stores, and would guarantee to pay premium wage rates to all subcontracted and in-house janitors. Prior to the agreement, Albertson's hired nearly 80% of its janitors through non-union subcontractors, Stillwell said. Albertson's could not be reached for comment last week.