California supermarket strike talks break down
Two month old dispute continues
December 10 2003
Talks between three major US supermarket chains and the union representing picketing workers have broken down, meaning the two-month-old strike in Southern California continues.
The strike has affected 900 stores operated by Albertsons, Safeway Inc and Kroger. The dispute is over health care concessions the grocery chains say they need to compete with discount supermarket operators such as Wal-Mart.
The union and the grocery chains said they remained a long way apart on the key issue of how health care insurance costs should be paid. Both sides blamed the other for the collapse in talks, and 70,000 workers remain on strike or locked out of their jobs.
Federal mediator Peter Hurtgen said: “We’ve reached a point where I believe a recess will help the process. I will ask the parties to return to the table when I determine that it might be fruitful to resume face-to-face discussions.”
The United Food and Commercial Workers is convening a meeting of union leaders this week to consider ways to increase the pressure on Safeway, which its says has led the retailers in taking a tough line on negotiations.
In a joint statement, the grocery chains said that they had not received a comprehensive offer from the union in response to a proposal that workers would pay $5 per week towards health insurance costs.
The supermarkets also want to revise the pay and benefits package for workers hired after the start of October.
Wal-Mart, which does not recognise unions, plans to open 40 supercenters in Southern California over the next five years.
