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The United Food and Commercial Workers union has been fighting a war on Wal-Mart's expansion efforts from the time of Wal-Mart's conception in Bentonville, AR. The reason being that according to The San Diego Union-Tribune, "Wal-Mart typically pays many its new employees less than $10 an hour, and doesn't immediately offer health benefits to new workers. That compares with wages of up to $5 an hour and a wide range of health and pension programs guaranteed to employees under the current labor contract between the United Food and Commercial Workers union and major supermarket chains such as Albertson's, Ralphs, Vons and several smaller companies."
This poses a problem to not only the 11,000 unionized grocery workers in San Diego, but to the rest of the unionized workers across the country. "With revenues of $18 billion in 001, Wal-Mart is the country's biggest company and largest retailer." And since Wal-Mart is the largest retailer in the US, its "newest growth vehicle" , the Neighborhood Market, threatens to drive down sales in the major supermarkets already operating in the US.
The Neighborhood Market is Wal-Mart's version of a free-standing [sic], full-service supermarket. These stores range in size from 40,000 to 55,000 square feet and have all the specialty departments that regular supermarkets have plus a drive-through pharmacy. As of mid-year 00, Wal-Mart only operated 4 and just a few in Safeway's geographies. Current projections however estimate that by year-end 008, over 1500 Neighborhood Markets will be in operation.
According to retail analysts, "these powerful stores [are expected] to achieve dominant market positions wherever they operate. Experts say that, in order to remain competitive, conventional food and drug retailers like Safeway and Vons may be pressured to reduce employee wages and benefits to the lower prevailing levels established by Wal-Mart."
How does this affect the unionized workers? Well in November of 00, the UFCW local 106 based in Camarillo, CA voted to increase member's dues to help fight Wal-Mart in order to show the owners of Safeway, Kroger, and Albertson's that their employees are taking action to help stop Wal-Mart. Because come this October of 00, the union contract with Safeway expires and both organizations go to the negotiating table. Steve Burd, CEO of Safeway has been quoted as calling the practices of Wal-Mart "the new standards for the industry." And has made it clear that he believes Safeway needs to
ɨ freeze wages or offer lump sum payments;
ɨ establish a market-based rate for new-hires;
ɨ offer voluntary buyouts to senior employees;
ɨ reduce health care benefits;
ɨ limit pension increases;
ɨ And demand work rules that give managers authority to exercise their powers arbitrarily.
This is the second front of the war that the UFCW is preparing to fight. What it does in October when negotiating this new contract will be seen by the owners and CEOs of Kroger (Ralphs) and Albertson's and will set the precedent for new contracts in the future.
If Safeway gets what they want, Vons checkout clerks like Kristy Mundt who has worked for the company for 0 years worry about their careers. Kristy has a condominium in El Cajon for which she puts / of her monthly pay towards the mortgage. If her wages were suddenly dropped from $17.50 to $10 an hour, her annual pay would decrease from about $6,000 to $0,000. "I'd be right on the edge," she said. "I wouldn't even be able to go to a movie anymore." Karen Stratton, a -year veteran grocery clerk at Vons, has been quoted as saying, "We could lose our homes, our cars, and everything else we've worked so hard for" in response Wal-Mart's announcement of plans to move into the grocery business in her area of San Diego County.
Most disheartening of all though, is the affect all of this will have on customers. While prices may be lowered by retail supermarkets to compete with Wal-Mart, how will the quality of food and standards of work fare? Are we as consumers still able to trust our produce clerks to supply us with the freshest fruits and vegetables when their wages have been lowered so drastically if indeed, Safeway gets what they want at the bargaining table?
"For the last year and a half, the United States has been engaged in a war on terror that clearly is still in its early stages. At the same time, preparations have been going on for months for an all-out war against Iraq. Success tends to favor the prepared in any war, be it armies or labor unions."
As the UFCW local 106 prepares to mount its largest campaign in the local's history, we can only sit back and wait until the dust settles to see who is the victor.
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