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Friday, August 13, 2004

Kroger, union sit down to deal


Tristate contract talks begin

By Randy Tucker
The Cincinnati Enquirer

The debate that has led to work stoppages and prolonged negotiations between Cincinnati-based Kroger Co. and its workers' union hit home Thursday as the two sides began negotiating new contracts for Greater Cincinnati.

America's largest supermarket chain is pushing for greater employee contributions for health coverage and pensions so it can remain competitive with discounters such as Wal-Mart - the nation's No. 1 food seller, which plans to open 10 new supercenters in Greater Cincinnati over the next 18 months.

But officials from the United Food and Commercial Workers Local 1099 - whose contract with Kroger expires Oct. 9 - say they won't give up high-quality health care and competitive wages for the more than 8,500 grocery workers they represent at about 70 stores.

"These may well be the most difficult negotiations in our long history with Kroger,'' Local 1099 president Lennie Wyatt said.

"Remember, this is the same company that locked out 25,000 UFCW members in Southern California.''

A 41/2-month strike and lockout involved a total of about 70,000 union workers in California.

The negotiations affected Kroger-owned Ralphs and Albertson's and Safeway stores in Southern California.

Kroger officials - determined to cut labor costs, including about $1 billion in health care coverage last year - said they lost $246 million in potential profits last year because of the strike and lockout, which ended in February.

Many food industry analysts say Kroger cannot afford another costly strike like the one in California.

"We understand the importance of good wages, quality health care and a secure pension,'' Kroger said in a news release. But "we are determined to continue providing excellent wages and benefits in a way that allows us to be competitive in the market.''

Kroger recently has reached contract settlements with the union in Louisville and Indianapolis without the threat of strikes or lockouts.

But union officials point out that those contracts were ratified only after lengthy and often contentious negotiations.

E-mail rtucker@enquirer.com




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