BARGAINING UPDATES:

May 10, 2009
Safeway, workers agree to continue labor talks

Safeway has agreed to resume contract negotiations with its union workers a day before they were to go on strike. The labor contract between the grocery chain and United Food and Commercial Workers Local 7 in Colorado expired last night without an agreement and workers planned to walk off their jobs tomorrow.  >>> Read More

May 7, 2009
SAFEWAY AND KING SOOPERS WORKERS REJECT PAY FREEZES AND PENSION BENEFIT CUTS

This week, UFCW Local 7 grocery workers at Safeway and King Soopers unanimously voted to reject proposals fthat slash pension benefits and freeze wages for most workers.   >>> Read More

April 17, 2009
Major grocers continue to insist on pension cuts

Despite an offer from the workers to discuss ensuring adequate retirement security for its employees, Safeway today continued to insist on major pension cuts.

Safeway and King Soopers propose dramatic cuts to workers' pension benefits despite the fact Safeway reported profits of 12% for the fourth quarter of 2008. Kroger, the parent company of King Soopers, reported an 8% increase in profits for the fourth quarter of 2008, largely on the strength of store brands.

The companies have the choice to request from the federal government an option to extend 'green' - or adequately funded - status for the pension plan by April 30 under the Worker Retiree and Employee Relief Act of 2008. Under the Worker Retiree and Employer Relief Act of 2008, trustees of a pension plans have the option of extending their 'green' status for one year. If the company trustees fail to extend the 'green' status by April 30, 2009, the pension fund will go into a 'red' status, meaning there will be insufficient funding to maintain workers' pension plan. The company trustees have refused to agree to a one year extension and instead proposed dramatic cuts to worker's pension benefits.

The benefits to be cut include 1) Golden Rule of 80, which means employees would have to work a minimum of 12 additional years to get their pensions, and instead of being eligible for benefits at 50 would have to wait until age 62 2) eliminating pension benefits for disabled workers and 3) ending a $200 a month supplement for retireees between ages 60 and 62.

"We're in there making money for them, and performing two or three jobs to do it," said Ted Sandoval, a 34-year Safeway employee who works in Pueblo. "I want the pension I've earned, and I'm willing to fight for it. And we need to fight for everybody, including the new hires."

Negotiations with King Soopers will occur tomorrow.

April 9, 2008
Grocers propose pension cuts on first day of negotiations  

Grocery negotiations between major grocers & United Food & Commercial Workers Local #7 began today, April 9, 2009. Today's meeting was with Safeway and King Soopers was held at the Denver Airport Marriott.

Since many workers are fearful of losing their hard-earned pension benefits, negotiations began with a discussion of retirement security. Safeway and King Soopers propose dramatic cuts to workers' pension benefits despite their financial success and option to extend 'green' - or adequately funded - status under the Worker Retiree and Employee Relief Act of 2008. Despite the tough economy, Safeway reported profits of 12% for the fourth quarter of 2008. Kroger, the parent company of King Soopers, reported an 8% increase in profits for the fourth quarter of 2008, largely on the strength of store brands.

Under the Worker Retiree and Employer Relief Act of 2008, trustees of a pension plans have the option of extending their 'green' status for one year. If the company trustees fail to extend the 'green' status by April 30, 2009, the pension fund will go into a 'red' status, meaning there will be insufficient funding to maintain workers' pension plan. The company trustees refused to agree to a one year extension and instead proposed dramatic cuts to worker's pension benefits. The benefits to be cut include 1) Golden Rule of 80, which means employees would have to work a minimum of 12 additional years to get their pensions 2) Disability Pension, and 3) $200 a month supplement between ages 60 and 62 years of age.

The workers voted to reject the proposal.

"Many workers have dedicated their lives to these companies and contributed to their success," said UFCW President Ernest L. Duran, Jr. "Just as the companies have earned profits, these workers have earned their pension, and the companies should not refuse them their retirement security."

Negotiations with King Soopers begin tomorrow.

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