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March 7, 2008
Giant, Safeway contract talks with unions keeping a low profile
The Gazette
by Kevin J. Shay
In 2004, as negotiators haggled over a new union contract at two of
Maryland’s largest private employers, some spoke of possible strikes
involving thousands of workers at area stores run by grocers Giant Food
and Safeway.
A four-year contract was eventually signed, avoiding the kind of
strike in Maryland that Safeway stores in California were involved
in about that time.
With the 2004 contract expiring March 30, the rhetoric this go-round has
been more subdued. Searches on Google and LexisNexis did not turn up any
news articles on the negotiations. Calls to union and company negotiators
this week were not returned.
Negotiations between United Food and Commercial Workers Local 400 and
officials with Giant and Safeway began Feb. 13, according to information on
the union’s Web site. ‘‘Much preliminary work has been completed for Giant
and Safeway members,” the site says.
Meetings to ‘‘present, discuss and vote on the final offers” are
scheduled for the morning of April 1 at the D.C. National Guard Armory in
Washington, D.C., according to union information. Union members are being
asked to bring registration cards to vote at that meeting.
The contract talks are being combined with those conducted by UFCW Local
27 in Baltimore and on the Eastern Shore, officials said. Meetings to vote
on the proposal are also slated for April 1 at the Baltimore Convention
Center and American Legion Post 91 in Cambridge.
The contract hammered out in 2004 covered about 18,000 Giant and Safeway
workers in suburban Maryland, Washington and Northern Virginia, and 12,000
in the Baltimore area. Updated figures could not be obtained.
UFCW Local 400 represents more than 40,000 workers in Maryland, Virginia,
West Virginia, Washington and Tennessee, but those include members from
numerous other companies, including CVS pharmacies and Magruder’s grocery
stores.
Giant has about 13,400 employees in Maryland, and most workers belong to
a UFCW local, said Jamie Miller, a Giant spokesman. The company ranks fifth
in the number of employees in Maryland among private companies, according to
a survey released last year by the state Department of Business and Economic
Development.
Miller referred questions about contract negotiations to attorney Harry
Burton, who was also the chief negotiator for Giant and Safeway four years
ago. Burton did not return calls. C. James Lowthers, president of UFCW Local
400, which is based in Landover, also did not return calls.
Safeway ranked ninth in the number of employees in Maryland with 8,680,
according to the state survey. Safeway executives could not be reached for
comment.
Medical insurance coverage was a key issue four years ago. Under that
agreement, veteran employees kept their benefits, but insurance deductibles
rose from $100 annually to $200 and the cap on out-of-pocket expenses
increased from $2,500 to $4,000. New employees began paying higher
deductibles until they were with the company for six years.
Employees received a 35-cent-per-hour pay raise annually for four years
and made concessions on overtime pay on Sundays.
Royal Ahold NV of the Netherlands, the parent of Giant Food of Landover,
reported Thursday that net income for 2007 more than tripled over 2006 to
$4.5 billion. Sales inched up by 1 percent to $43.2 billion.
Safeway, headquartered in Pleasanton, Calif., recently reported that net
income last year increased by 2 percent over 2006 to $888.4 million. Revenue
increased 5.2 percent to $42.3 billion last year, while same-store sales
jumped by 3.4 percent.
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