Grocery store workers in Southern California may go on strike this weekend. The strike is a result of a breakdown in negotiations between the union and the stores. If the strike occurs, Ralphs grocery stores will close. Where do you do your grocery shopping?
There has been an ongoing issue that involves the health insurance of grocery store workers. This is taking place in the grocery stores located in Southern California. A contract negotiation has lasted eight months, (so far), and has not come to a conclusion. A few weeks ago, the unions that represents 62,000 workers indicated that they were anticipating a labor strike.
On Thursday, September 15, 2011, the workers’ union issued a 72 hour notice to cancel a contract extension. By doing so, they have removed the final barrier that would have prevented them from a labor strike. Right now, it seems like a strike could very well occur as early as Sunday, September 18, 2011. There is no guarantee that the workers will strike, but it looks like a likely possibility.
The reason for the strike has to do with health insurance. The supermarkets have been unwilling to compromise on what they want their workers to contribute toward their health insurance policies. The stores say that the health care fund that was being used towards the employer sponsored health insurance is about to run out of funding. This could result in the stores canceling the health insurance, or to require workers to pay much more for it.
Kendra Doyel, spokeswoman for the Ralphs grocery stores, says that Ralphs currently pays “more than 90%” of the health coverage costs. Workers who were hired by Ralphs before 2004 do not pay anything at all for their premiums. Workers who were hired later pay $7.00 a week, (for single coverage), or $15.00 a week (for family coverage). I am unable to find any data that describes what the grocery store workers at Albertsons or Vons are paying for health insurance at this time.
The grocery store owners do not want a strike to happen. They have expressed concern about how potential customers may be made to feel uncomfortable if they have to walk through a picket line in order to shop at the grocery stores. There have been statements made that indicate that the stores want to continue with negotiations, rather than deal with a labor strike.
If a strike occurs, Albertsons and Vons will remain open. Ralphs, however, will close if a labor strike happens, (until the strike is over). In 2003, a strike and lockout that lasted for four months cost Ralphs, and other grocery store chains, around $2 billion.
Image by Aaron Fulkerson on Flickr