Union agrees to extend previous labor contract with Raley's through April 6 while an independent review of its financial status is conducted

Cindy Allen

PLEASANTON, California , April 2, 2012 (press release) – UFCW Local 5 and UFCW 8-Golden State announced late Friday night they agreed to an extension of their previous labor contract with Raley’s/Nob Hill through April 6, 2012. The company has also agreed to accept an independent review of its financial status.

The extension agreement with Raley’s/Nob Hill averts a possible labor dispute with the company and allows time for an independent review to examine its financial status. Save Mart/Lucky also has agreed to accept an independent review of its financial status.

In order to make informed recommendations regarding their members’ economic future, the Unions insisted on financial transparency.

“We need to know the facts, which is why we insisted on third-party verification of the companies’ assertions about their financial status,” the union presidents said. “We are always responsive to the competitive challenges of Union employers and are prepared to work diligently to meet the challenges of the industry.”

The Solidarity Alliance partners, UFCW Locals 5, 8 and 648, have been negotiating a new contract with Raley’s/Nob Hill, Safeway/Vons and Save Mart/Lucky since last summer. The companies are proposing cutbacks in employee health benefits, elimination of health care for retirees, reductions in take-home pay and other takeaways.

The previous contract for 62,000 Union supermarket workers in Northern and Central California expired last October, but the workers have been covered by a series of extension agreements since then.

Union members at stores owned by Safeway and Save Mart are still covered by an ongoing extension of the previous contract. Either side may cancel this arrangement after giving notice seven days in advance.

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