NEWS WATCH: UNIONS, STOP & SHOP AGREE ON NEW CONTRACTS...FEDERAL INSURER TO PAY FLEMING PENSIONS...PUBLIX BUYS THREE KASH N' KARRY STORES

UNIONS, STOP & SHOP AGREE ON NEW CONTRACTS

d Food and Commercial Workers Union locals representing about 42,000 Stop & Shop workers in Massachusetts, Connecticut and Rhode Island last week ratified new contract agreements with the chain, which is based here and is a subsidiary of Zaandam, Netherlands-based Ahold. The contracts expired Feb. 14. According to the locals, highlights of the new contracts include: no employee contributions toward the cost of employee health insurance for the life of the three-year contract (although with a longer waiting period before coverage begins for many new hires); the simultaneous expiration of the five locals' contracts; and wage increases for current employees. A Stop & Shop spokeswoman told SN that the company was "pleased with the new contract" and that it had "made significant strides in controlling the spiraling costs of health care."

FEDERAL INSURER TO PAY FLEMING PENSIONS

WASHINGTON -- The Pension Benefit Guaranty Corp. here said it has assumed responsibility for the underfunded pension plan of more than 17,600 workers and retirees of Fleming Cos., Dallas, which filed for a Chapter 11 bankruptcy last year. The PBGC, a federal corporation that guarantees payment of basic pension benefits, said Fleming is handing off its largest pension plan to the government insurer under the "distress termination" provisions of federal pension law. The PBGC noted that the Fleming pension plan has about $270 million in assets and $644 million in liabilities. The federal agency said it expects to make up $358 million of the $374 million shortfall.

PUBLIX BUYS THREE KASH N' KARRY STORES

LAKELAND, Fla. -- Publix Super Markets here said last week it has purchased three Florida stores from Kash n' Karry Stores, Tampa, Fla., a subsidiary of the Brussels, Belgium-based Delhaize Group. Terms were not disclosed. Publix said it plans to reopen the stores this summer. The Orlando and Ft. Pierce stores will open as additional Publix units, while the Auburndale site will be a replacement store.

AHOLD CALLS INVESTIGATION 'PREMATURE'

ZAANDAM, Netherlands -- Ahold here said a request by the VEB (Association of Dutch Stockholders) filed with the Enterprise Chamber of the Amsterdam Court of Appeals is "unnecessary and premature." The company said the VEB has petitioned the court to open an investigation into company activity between Sept. 27, 1999, and Dec. 18, 2003. Ahold said, "The new request adds nothing to investigations currently under way" and "such an inquiry will markedly hamper the conduct of the company's business." Separately, Ahold said it has reached agreement with holders of preferred shares that covers the limitation of their voting rights and the conversion of preferred shares to common shares, the provision on conversion being subject to approval at a March 3 shareholders' meeting.

FOOD 4 LESS EXTENDS CONTRACT WITH CALIF. UNIONS

COMPTON, Calif. -- Food 4 Less here, a subsidiary of Kroger Co., Cincinnati, said it has reached an agreement with seven Southern California United Food and Commercial Workers Union locals to extend its current collective bargaining agreement, originally set to expire Saturday, through April 4. The seven locals are currently involved in a strike-lockout involving Kroger-owned Ralphs, as well as Albertsons and Safeway-owned Vons and Pavilions. The extension covers 5,700 Food 4 Less employees working in 101 stores.