Grocers' contract unsure (23,000 to strike?)

[Omaha Steve]

http://www.baltimoresun.com/news/local/bal-md.bz.grocery29mar29,0,2787170.story

Giant, Safeway labor pact ends tonight; strike threat looms

By Andrea K. Walker | Sun reporter
March 29, 2008

Giant Food and Safeway supermarket chains and the union representing 23,000 store workers remained deeply divided on key issues yesterday as they approached a weekend deadline for a new labor contract, raising the threat of the first grocery strike here in more than three decades.

The contract between Safeway and Giant Food, owned by Dutch conglomerate Royal Ahold NV, and the United Food and Commercial Workers Locals 27 and 400 expires at midnight tonight, but the two sides have agreed to negotiate through tomorrow. Workers will vote on a proposed contract Tuesday - or whether to strike if no deal is hammered out. They could also decide to extend negotiations.

Giant plans to close stores from 10:30 a.m. to 2:30 p.m. during Tuesday's vote. Safeway stores will remain open.

Neither side would discuss details of the negotiations. Yesterday, Local 400's Web site noted that some progress had been made "although significant hurdles still exist. ... The focus continues to be on health and welfare benefits, wages and pension benefits."

The showdown comes at a time when rising food prices and a slowing economy are adding pressure on grocery chains' already slim margins. Supermarket companies also have pushed for cuts in labor costs in recent years as they face intense competition from nonunionized rivals on two fronts - from high-end markets that can drain upscale customers and discounters that undercut prices.

Wal-Mart Stores Inc., for instance, has started building its Supercenters, which include full groceries, in the Baltimore area. Similar stores, such as Target, also sell some grocery staples.

FULL story at link.