Safeway, Fry's enter in mutual lockout agreement

By Joe Pangburn, Inside Tucson Business
Published on Thursday, November 12, 2009

Fry’s Food and Safeway have entered in an agreement allowing one of the grocery chains to lockout its bargaining workers if the other stores’ employees begin a strike, which could occur as soon as Friday evening.

The grocers are currently engaged in labor negotiations with the United Food and Commercial Workers Local 99. The current labor contract expired last year, and a recent extension expired on October 31.

The "mutual strike assistance and lockout agreement" allows, but does not require, either Safeway or Fry's to force union members into a strike if members strike at the other employer. The agreement does not preclude either Fry’s or Safeway from independently entering into a settlement with UFCW Local 99.

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“Fry’s signed this agreement to protect our companies, our customers and our employees’ jobs in the event of a union strike," said JoEllen Lynn, director of public and community affairs for Fry’s.

Diane Mulligan, a Fry's spokesperson said this accomplishes three things: it levels the playing field as the one union is negotiating with both chains; it removes any undue pressure on one chain to sign a contract that is bad for the grocery industry in Arizona and with both employees off the job at both employers it should create some expediancy to get all parties back to the table.

The main issues in the negotiations revolve around wage increases and employee contributions to health-care premiums. Current employees don't contribute to health-care premiums now, but the employers' offer included contributions from newly hired workers of $5 to $15 per pay period.

The union is set to hit the picket lines Friday at 6 p.m. if no agreement is reached. Fry’s has already hired and is training more than 2,500 temporary workers should the strike move forward.

Fry's has 120 stores in Arizona and employs 17,000 people, 12,000 of which are union members. Safeway employs 10,000 union members in its 116 stores around the state.
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Comments

Safeway Worker wrote on Nov 13, 2009 3:25 AM:

" All the money that you SAFEWAY pays to these people is being thrown away when you could use it by giving it to us employees who have been and are dedicated to bringing you more customers and more sales to give you all paychecks and bonuses. What is left after this can go to healthcare benefits and I'm pretty sure there is more then enough for all this. For a billiondollar company why are you all so greedy with money that you personally did not bring in. As safeway puts it we the employees are on the front lines of this company and we are the ones who make the difference for this company. Why tell us things like this when its all lies. Let's see what difference you are making for our lives and yours ... Majority of customers only come back to shop because we have befriended them and have gain they're trust and confidence in us - the true safeway team. Can you say the same for yourselves (high paid)? "

Safeway Worker wrote on Nov 13, 2009 2:45 AM:

" You say you are fighting for our rights yet you are playing with our rights and our lives. You want to play then the jobs you all have are not for you because the only lives you should play with are your own! As for our employers Safeway and Kroger - we employees are what brings you the customers which bring in sales. You train us to go above and beyond for our customers. You set all sorts of rules and expectations for us to follow and we abide by them even when some are idiotic. A majority of us put up with all the verbage that you dish out. For example, saying that some are not teamplayers yet those are the ones who go out of there way to help others. Another ex. Overttime - you wouldn't have a problem if you scheduled appropiate help and if some of the assistant managers you hire helped out. I'm sorry to say but a majority of us whom are below management seem to know more in knowledge then assistants who make twice more then we do. They should earn the pay instead of being given it same goes for merchandisers who specialize in specific fields of the safeway industry. Half of these specialist don't even know information that they should know because its their job being specialist and all yet you pay them what they don't deserve. Those examples are only a few and by making paycuts here and only paying what is earned to all the higher paid assistants and such who don't know nothing - raises can be given to the employees because we've been getting lesser pay for knowing more knowledge then others who get higher pay and know less. "

Safeway Worker wrote on Nov 13, 2009 2:11 AM:

" Why is it that these companies are always saying teamwork, teamwork, teamwork! They want us employees to be team players yet they're not. Maybe all you high paid employees from the union, safeway, and kroger should take paycuts and see what its like to be one of your members or employees to live paycheck to paycheck and wait for insurance to become effective for your families. Personally I believe some of you do not deserve the pay you are getting. Especially those who we (employees of safeway and kroger) pay to protect our rights - THE UNION!!! Why is it that our so called union has us paying them yet out of the nine some odd years I've worked for safeway I've only seen union reps 3-4 times in those 9 years. That's 3285 days and you've come 4 days out of all those. Then you the union only give us a few hours to vote on the strike and lockout. You could've given us EMPLOYEES whom its affecting more time then what you allowed. "

John316 wrote on Nov 12, 2009 11:53 PM:

" That is another thing that surprised me when I moved here.No COST OF LIVING WAGES.Wow I could not believe that. I got a cost of living raise every April. Safeway employees have been frozen for a long time. I think it has been about 8 years. Taxes go up outside of safeway,but our pay doesn't it does get harder every year when taxes go up. I know people are saying we are stupid to strike,but we are finally tired of this crap. You just don't understand I am so grateful for a job,but Safeway is not hurting they can afford to give raises come on now if it wasn't for us keeping there stores running they wouldn't be around and doing good. God Bless to all. May He keep us strong. "

John316 wrote on Nov 12, 2009 11:42 PM:

" I have been with Safeway for 12 years. My husband has been with Safeway for 10 years. We are transfers.We took a 5 dollar an hour paycut to move here to Tucson. Thinking it was going to be cheaper here to live,but we were wrong. We lost our insurance when we moved here.It didn't come with us.Let me remind you I have been with Safeway for a long time,so why did I loose my insurance? My kids will finally get insurance through Safeway after 18 months of living here. 18 months I had to pay for private insurance,because we make to much for access. Safeway has two contracts.One is called the old contract where employees make 15 dollars an hour,get paid for alot of holidays,and get Sunday pay.The second contract is for new hires which I am under because I transfered here. Even though I have been here as long as alot of the old contractors.On the new contract we get 12.05 an hour( which doesn't bother me as much as loosing my insurance),we only get 2 holidays,and we don't get Sunday pay. Oh and then the New contract member start out on B1 insurance which is the worst insurance you can have and it takes about 5 years to get the same insurance that the Old contract people get which is the A insurance which is pretty ok . Now they want to start a new third tier(or contract) with the New hires.They want to get them at minium wage for a very long time.It took me 1 year to move up to the top pay 11 years ago. It will take 10 years for New Hires to move up to top pay. They want them to pay for their own insurance at minium wage. Why not have just one contract for all and let us all move up on a scale and get paid for all the same holidays,why not have us all on the same insurance and why wait 18 months for children to get on your insurance. Why is all I ask. I am ready to fight this battle for Arizona Safeways. I think things are not fair. I know that now by living down here. S stands for Solidarity. "

fairwagesforall wrote on Nov 12, 2009 7:54 PM:

" We just don't want a pay cut, we work for lower wages so that we have health care but now they are changing the rules. We even agree that it would be okay to raise our CO-PAY, which has been done many times in the past but we just don't want to pay a premium too because we would end up taking a pay cut and that's not fair
With a raise in co-pay then people would only pay more for something they use not for something they are not using, this seems the most fair option for both sides. Chances are that they will raise our co-pay again AND hit us with the new premium. The average worker doesn't make much over minimum wages so any increase is really hit in the budget.

Everyone thinks that equal pay for men and women is a good thing and is the law so why not equal for all workers doing the same job? We have two pay levels and they want to add a third! The same people doing the same work will not make the same wages and it will take them TEN YEARS to get to "top pay" which isn't that great.

They had profits of a BILLION DOLLARS last year even with the bad economy because our wages
have been FROZEN for years.
Please support the workers even if you don't believe in Unions.
Thank You! "

J Guest wrote on Nov 12, 2009 3:58 PM:

" Just came from my neighborhood Fry's. Same helpful, friendly folks as always. No more, no less, and no sign there is anything in the wind.

If you watch a bagger closely you might see actual movement. Like a time-lapse video of a sloth. Consider yourself lucky; it's not often observed in the wild. I'd suggest naming a glacier after them. The ones who don't have an excuse that is. Some are handicapped, and doing their very best. Tremendous admiration for Fry's for not only hiring these folks, but putting them right on the front lines, uh, so to speak. This is a spot where speed is king and Fry's has said tough, they're doing their best, chill out. I couldn't agree more. Way to go Fry's.

Ok, now where were we? Oh yeah, the strike... "

Local wrote on Nov 12, 2009 3:47 PM:

" I don't shop at either of these businesses because they are not truly local. I shop at Basha's. They are an Arizona based business. I believe in supporting Arizona based businesses as much as possible. "

john wrote on Nov 12, 2009 1:40 PM:

" after reading everyone's posts on many website no one has mentioned how fry's is also paying out 7mil into the workers pention to help stabilize it now that 7 mil has to come from some were and its funny how there were only 7000 votes for the strike what about the other 20000 people that are part of the union where is their vote oh thats right they were busy working and helping customers "

tough one wrote on Nov 12, 2009 1:04 PM:

" While I will honor picket lines on principle alone I have to say that EVERYONE (with the exception of CEO's of companies that have brought this current economic crisis upon us) is hurting right now. We are ALL being asked to make sacrifices. My insurance more than doubled this year compared to last (and we are talking more than $5-10, though it is arguable that relatively speaking it might be similar). Furloughs and pay-cuts are hitting everyone, and again with the exception of CEO's, no one I know has gotten a raise in many years now.

That said, I don't want to see unions go away, I just hope that they are indeed working on behalf of the employees in this matter.

Best of luck to everyone. "

Amelia749 wrote on Nov 12, 2009 11:51 AM:

" Unions are much like politicians. You support them because they tell you about how bad off you are, and how they can fix it all for you if you just give them money and power. But then you learn that they're not in it for you, just for the money and the power. Like the politicians we've sent to Washington that are supposed to represent us, we soon learn that they are doing things that won't benefit us, may actually hurt us, and are not what we want at all.

How did this happen? They have become some independent, malevolent beast that we no longer have control of, even though they supposedly work for us! You quickly learn that politicians are in it for the money and power, and with the unions you can add the thrill of fighting the "company," showing them who's in control; and if it's at the expense of the members, well that's just the way the cookie crumbles. At least we showed them we wouldn't be pushed around. (Comforting thought as we stand in line at DES.)

Try this, see what kind of pay raise the company would be willing to offer in exchange for kicking the union into the gutter where it belongs. Then it becomes a simple equation, they will either offer a compensation package that will attract and retain quality employees - and thereby customers - or they won't. And they will suffer the losses accordingly. Viva la American way!

Last one to the DES office is a past-expiration-date egg! "

Look wrote on Nov 12, 2009 10:40 AM:

" try reading this ufcw99.com/ (the local union site) click on fry's lies for a pdf of the facts. These people have given up $3 per hour to have their medical insurance paid for. Now the companies want to take that away too. I say to Safeway and Frys, give them all $3 an hour raises and then maybe they can afford the insurance cost, you can't have it both ways, cut pay and charge for insurance. "

small town girl wrote on Nov 12, 2009 10:01 AM:

" Well we lived the Phelps Dodge strike in 1983, it not only hurt coworkers and friends but families. At the time husband didnt want to cross the line but he was salary. You people do what you have too do, we dont pay your bills. So we are not in your shoes right now. I am in a union, so I hope when it comes time that they may shut the prisons down. Our union will be there for us, but time will tell. Good Luck and God Bless You All! "

Amanda E wrote on Nov 12, 2009 9:24 AM:

" Fry's and Safeway are trying to take advantage of employees at a time when the unempoyment rate is high, and so companies have much more leverage. While people are lucky to have a job at this point in time, it is important to note that the economy will not stay in a slump until the end of all our days. It will eventually get better, and when it does, people will still be making minimum wage and will top out at $12.05 an hour (and that will take YEARS, over a decade). Please also understand that Fry's employees originally agreed to lower wages on the condition that they receive free health care. Now Fry's wants to lower wages AND ask for employee contribution towards health care. I urge all of you to visit the union's website so you can take a look at the actual numbers involved here and hear some information from the other side. I think it is unfortunate that this is so, and I really hope it does not have to escalate to the point of striking, but it seems more than likely that it will.I don't want to be locked out of my job, and I don't want to go on strike, but I don't want my future co-workers to be taken advantage of either. What kind of quality job will these people be performing at these low wages? I'm going to find a new job. It has become obvious to me that Fry's does not follow the mantra "Our people are great!" that they so willingly and hollowly claim. "

Robert Rowley wrote on Nov 12, 2009 9:02 AM:

" I shop at the Safeway at Oracle and Ina and strike or no strike I will continue to shop there. If a strike does happen then I will shop there twice a day. I will not bow to union goons and I will NOT be prevented from entering the store...I WILL have anyone who tries to stop me arrested however. "

sickboi35 wrote on Nov 12, 2009 8:27 AM:

" im union also,and do not want to strike,i work at frys and wife at safeway,so were both screwed if we strike,and get locked out,being i have 5 kids a dog 2 cats and bills like living paycheck by paycheck like everyone eles,im considering going to union today and me and my wife are getting out!!!,we are getting screwed by union99 and there suppose to help us. "

Amy wrote on Nov 12, 2009 12:12 AM:

" I am a fry's employee. I am so discusted in ths whole situation. I am very happy with the offer fry's has made with the Union. It's not going to affect me or my family with the new contract they have to offer. I love my job, and I feel like the union was suppose to always protect me and keeping my job secure. If this takes place and we go on strke, I can say this willbe the end of my security with the Union. I pay the Union $12.00 a week for what? This s bull-crap. I pay the Union more than if I had to pay a premium for health insurance with Fry's. Hmmm do the Math...Who will benefit from this whole situation? Not Frys, Not me! Yes you guest it the Union. I hope we come to a solution on this. I want out of the UNION............Fry's is the best comany and fair company I have ever worked for. "

Beth W. wrote on Nov 11, 2009 11:34 PM:

" The Safeway employees I have personally spoken with have said they think the offer given them by Safeway, via Local 99, is a good one, in light of the economy. Safeway employees have given up very much in the last eight years to have the Health Care program they have. Still, they are willing to pay for their Health coverage if it comes down to it. The Union made them think that Safeway was trying to rip them off and this made them vote to strike. Since, Safeway has made an offer that their employees want to accept but the Union (looking out for the "New Hires") will not let its' members accept. You see, if a new hire has to pay $5 - $15 dollars per paycheck for insurance, they might not be able to afford to join a union that takes $10.50 a paycheck. The union, in my opinion ( which happens to be the opinion of so many ) cares NOTHING about their members; only about the potential dollar that they might not be able to squeeze out of future employees. They use the employees' health care as a premise to make themselves money. Imagine if the new hires paid for health care INSTEAD of paying the union. How Tragic for all of the high paid union employees. In their shoes, I would rather pay for health care than line the pockets of union people that are fighting for employees that aren't even in existance. Care for what you have now. Don't make the people who have supported your union for YEARS suffer just because you are afraid of losing count later. Local 99, you've really topped yourselves this time! "

Ben wrote on Nov 11, 2009 10:57 PM:

" I shop at the Safeway on Campbell and Broadway regularly. The main reason I spend my money there is the workers. When you shop at a place for a while you get to know the people who ring up your lettuce and stock your beer. My stand is with them, not some corporate pig. if they strike, I will not shop at Safeway or Frys, and I urge you all to do the same. The main problem here is that AZ is a Right to Work state, which means it is anything but. Are unions perfect? No. Are they necessary for working people to get a fair shake? Absolutely. "

lista wrote on Nov 11, 2009 10:40 PM:

" I just wish every one would think twice before they write. Heres some thoughts to think about I work at Frys I dont want to strike I have bills, a morgage, car payment, child college fees just like every one else I would not mind if i have to pay for insurance I have paid more than what is being ask of in the past when I worked for other companies making less money. the point is IF SAFEWAY STRIKES FRYS WILL call LOCKOUT all their employees exept those that are salery workers will NOT have a choice to work or strike who does this hurt EVERYONE!!!! first the employees that cant work lose their pay securety livelyhood the second salery workers will have to put up with long hours working with an entire new crew who dont know what their doing with only getting what like 5 hours of training looks like the UNION is destroying any faith we might have left in them and FRYS is doing the same because if they cared why would they even think about entering into an agreement with one of their #1 competiters for a lock out and third all of our loyal customers who will have no choice to wait in long lines and confused workers the only thing left to say is GOOD LUCK TO US ALL AND GOD BE WITH the ones who will make the decisions that lie ahead "

Bewildered wrote on Nov 11, 2009 9:32 PM:

" In the past Unions may have stood for something, but now they are nothing but greedy, unethical oraganizations themselves. Many Frys employees were misled by Union reps into voting for a strike. To bad the employees did not do research or actually think about what their votes would mean. Ironically, if a strike occurs they will lose their healthcare benefits for the following month! The very thing they are fighting for, or so the Union says. They need to work a certain amount of hours each month to be eligible for benefits. The Union bloodsuckers conveniently never mentioned this.

Also the Union must be aware of the fact that many employees are happy with this latest offer. Even so, the Union refuses to let the members vote on whether or not to accept this offer. I wonder what their motives are. Are they that stupid to not know this is the wrong time to strike? Are they clueless about the current economy? They have zero leverage. A lot of employees will leave the Union after this. They (Union leadership) are either complete idiots or absolutely evil. They don't seem to care that they are sending their members to certain doom... "

J Guest wrote on Nov 11, 2009 8:34 PM:

" And for those suggesting people not buy groceries while these goofballs settle their differences...get a grip. That's like saying ,"We're in a lawsuit with the EPA over clean air and we'd appreciate it if you'd support us by not breathing during this difficult time." I'm not going to pass the Fry's and Safeway that are a mile from my house to drive another part of the city, to pay more for groceries, at a store I'd don't like, and then try to get refrigerated and frozen food home. Not gonna happen. "

BC wrote on Nov 11, 2009 8:30 PM:

" In response to ChaCha...next time your job is at stake. I will think about that too especially when its not you putting your on the line. Some people really should think through statements before saying then but than again that is asking like every person to be nice in this world. Some are just more selfish than others. "

RobertJ wrote on Nov 11, 2009 8:14 PM:

" None of that matters! This is not China. No one went into these people's homes and drug them out at gunpoint and made them take jobs working at Fry's or Safeway. If it's such a horrible place to work with such lousy compensation then what are all those people doing there? Obviously the company has no trouble getting workers at these levels of compensation or the stores would be empty, OR they would have to raise the pay and benefits to attract workers. THAT'S THE WAY A FREE MARKET ECONOMY IS SUPPOSED TO WORK.

I work for one of the largest employers in southern Arizona. We got no pay raise last year, a pay CUT this year, and are being told we face an even BIGGER pay cut next fiscal year. My wife works for a different employer and ALSO had a paycut this year.

These people need to suck it up or look for something else. What? There IS nothing else? Yeah, that's the whole point. They need to appreciate that they are better off than many right now, and there are no guarantees that even THAT will remain the case. There may be a time for fighting for a better deal, but this is NOT it. "

an employee wrote on Nov 11, 2009 6:49 PM:

" The unfortunate thing here is you are only hearing what Fry's and Safeway WANT you to hear! They aren't saying that the median income for a grocery store employee is $20,000 a year. They aren't saying we haven't had a raise in 5 years. They aren't saying that this proposal they are talking about states, 'no insurance premiums for current employees UNLESS THERE IS A SHORTFALL in the fund' And the employers aren't telling you that NOWHERE in the proposal does it say how much we would have to pay when such a shortfall takes place! We want a number. We want credible information. Then we will take a vote!

They are also NOT telling you that last contract the employees stood down because the companies told us that is what we needed to do in this market to combat our competitors. We accepted what they gave us. We allowed them to create a two-tiered system. Now they want to make it three tiers. They are also NOT telling you they are making money in this economy. Perhaps not as much as they want, but making it nonetheless. They are also NOT telling you they just paid out 1st half bonuses to their managers. But the workers need to be the ones to give to make the company profitable?

I have worked for one of the companies for the last 20 years. I make $12 an hour. I am not complaining. Part of my compensation was always my benefits. I have worked EVERY major holiday for the last 17 years. That was the price to pay and we have all paid it, gladly. We chose the grocery business because not too long ago it was honest work with decent wages and great benefits. Nobody wants a strike. We all want to work! We deserve fair wages and full disclosure on what we are expected to pay out for our insurance.

One last thing to think about.... since the last contract, turnover has been outrageous! We cannot keep employees for the sub-par pay, no benefits for the first year, and scheduling demands of the grocery business. Simply put, these replacement workers would not stay for exactly the reasons we are fighting.

Support the workers! Honor the picket lines should it come to that! "

Joe wrote on Nov 11, 2009 4:55 PM:

" Lets see, right now I pay $95 for health care plus copay. If I want to insure my wife and kids, its close to $600 a month. And they think paying $5 to $15 is unreasnable? They think their entitled to free insurance? Give me a break! "

chacha wrote on Nov 11, 2009 4:49 PM:

" I haven't worked for 18 months. I'm supposed to care one way or the other about the welfare of the Frys employees? Are you kidding me? I need work and I need it now. How anyone could give up a job now is beyond my understanding. "

DJG wrote on Nov 11, 2009 3:50 PM:

" Don't shop at Fry's or Safeway there are many others store around who need your business Don't cross the picket line , If they don't want to talk turkey and give them better a Raise so be it.. They should at least get a dollar 25 cents is a slap in the face. I support the workers they deserve it I won't shop there and you shouldn't too I support the union "

Breathless wrote on Nov 11, 2009 3:49 PM:

" OK, so no one wants' to see a strike, and it's hard to make out the good guy's from the bad. But just think, who's more full of s___t, Fry's or the union. What Fry's isn't saying in there ad's is, 1- They are underfunding the benifit's fund so it will need employee contributions, 2- and this is a BIG one, if the employess excepted this contract ALL the new hires would start out a min. wage (been there done that),BUT, it would take them "8" years (if they worked 40 hrs a week, which they won't) to get to the $9.50 hr. which is what Fry's is now paying replacement workers. At some point in time you need to make a stand and say enough is enough. We all want health care, and a decent wage, and don't want to be treated like Walmart employee's.................... "

BC wrote on Nov 11, 2009 3:18 PM:

" In response to those who comment on "giving jobs to non-union workers to replace union-workers," I kind of feel like you're giving a jab at employees who were potentially put a position they don't want to be in. It is known fact that half of Fry's and Safeways's union DO NOT WANT TO STRIKE. They have families they need to feed to and bills they need to pay; and as long as some of them have been working there, I may as well suspect they understand that it is a bad time to be losing a job during the holidays. So give union workers a little bit more credibility and start pointing fingers at the people who put on the plate in the first place, UFWC 99 Union. All they want is the money and the employees want to keep your jobs. "

RobertJ wrote on Nov 11, 2009 2:26 PM:

" Fry's and Safeway should refuse to entertain a union contract now and forever and take applications for PERMANENT non-union workers. 200,000 people who know the value of a job in the dire economic times we face would line up for those 22,000 positions. Return to a free-market work force. Let the unions starve. "

J Guest wrote on Nov 11, 2009 2:20 PM:

" In this economy? With real unemployment topping twenty percent, and many who still have jobs facing pay cuts? People with decent jobs and benefits are willing to strike? Fry's and Safeway are hardly sweatshops. As usual unions cause as much or more damage than benefit. It's amazing that most of the workers do not want a strike, but the union keeps pushing anyway. Dumping the union would be the best course, but either way, if they strike, I say fire them all. "

heather wrote on Nov 11, 2009 1:40 PM:

" "Don't shop at Fry's or Safeway until this is resolved!" I won't. I have been surprised at how many comments I have read on these stories that are bashing the union and workers. Why not support the little guy the worker instead of the big company, the company is not hurting.
GO UNION "

UnionMaid wrote on Nov 11, 2009 11:23 AM:

" With the amount of profits before stores made in 2008, it makes you wonder why they won't let workers maintain free health insurance. Oh and I wonder what types of bonuses Mulligan and Lynn (the two company spokespeople being quotes in the article) receive. I bet if they say no to their raises/bonuses this year workers may actually benefit. But that would be simply out of the questions. They, of course, deserve such, sitting in their offices all day. Stay strong workers, don't let the company divide you. I will honor your picket lines and know many other who will do the same. Don't shop at Fry's or Safeway until this is resolved! "

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