Union To Kroger: Pay Up

[Omaha Steve]

Source: Forbes

Melanie Lindner

Better go food shopping now, because Kroger workers are about to strike.

On Wednesday, the United Food and Commercial Workers Union Local 1099 representing 11,000 employees in 77 Kroger (nyse: KR - news - people ) stores rejected a three year contract proposal from the grocery chain. By rejecting the offer, union workers are authorized to strike if the company refuses to renegotiate.

Kroger's stock advanced 36 cents, or 1.3%, to $29.20 in Thursday morning trading.

Local 1099 covers the Cincinnati region, where Kroger's headquarters are located, as well as parts of northern Kentucky and southeast Indiana. Meghan Glynn, a spokeswoman for Kroger, believes the region is increasingly competitive, as Wal-Mart (nyse: WMT - news - people ) has recently opened several of its grocery-selling Supercenters. "Competition from other retailers has increased substantially," said Glynn. "We are working to reach an agreement that offers our employees fair wages and benefits and also enables us to remain competitive here in this market."

Read more: http://www.forbes.com/markets/equities/2007/10/11/kroger-retail-union-markets-equity-cx_ml_1011markets21.html