By PAUL NYHAN
SEATTLE POST-INTELLIGENCER REPORTER
Washington grocery chains are not completely unified in how to tackle the current round of labor negotiations, with Brown & Cole Stores suggesting a more cooperative approach yesterday.
Three years ago, the Bellingham-based grocer joined forces with Safeway, Albertsons, Fred Meyer, QFC and others to hammer out a labor contract for roughly 20,000 Western Washington employees.
This round, Brown & Cole is staying on the sidelines, saying it is not interested in a protracted labor dispute. Safeway, Albertsons and Kroger Co. endured a five-month strike in Southern California that ended in late February.
"We just don't have the stomach to be at war with our own employees," Brown & Cole Chief Executive Craig Cole told the state Senate Democratic Caucus yesterday at a hearing in Seattle.
The large chains counter that they are simply trying to balance the competitive pressures and employee needs that many local grocers face.
"We are not trying to go to war with our employees. We are trying to provide them with quality benefits, while remaining competitive," said Melinda Merrill, a spokeswoman for the grocery chains.
Cole agrees that his chain, which has 32 stores around Washington state, has plenty of financial challenges.
Cole suggested that Wal-Mart Stores Inc., which has faced criticism over its treatment of workers and suppliers, is imposing its low-wage model on the rest of the industry.
"It's a race to the bottom," Cole said.
In 2001, a larger group of grocery chains banded together to negotiate with the United Food and Commercial Workers Union in Western Washington. This year, Safeway, Albertsons, Fred Meyer and QFC are the only members.
But, other chains will benefit from those talks, as Metropolitan Markets, Thriftway, Red Apple and other chains signed an agreement to offer whatever eventually comes out of the collective bargaining.
Cole & Brown has not signed one of the "me-to" agreements, although it could in the future.
Under the system, the big stores will take the heat at the bargaining table and during any lockouts or strike.
At the table, the four negotiating chains are trying to contain and cut costs, saying they face growing competition from Wal-Mart and other low-cost stores. Health care costs, for example, are soaring. Employer health care costs have risen 77 percent over the last three years, according to Allied Employers.
So, the stores proposed that new employees should pay 20 percent of their health care costs, according to the union. Union officials, however, have yet to receive the entire health care proposal.
Companies also proposed a three-year wage freeze, according to the union.
The chains instead proposed a bonus, worth 25 cents for every hour a journeyman employee worked in the previous year. Journeyman would receive a bonus in all three years of the contract.
Of course, contract provisions are not set until the entire contract is agreed to. And the two sides likely have at least until May 21, the date of the final bargaining session.
With just a week to go, Cole & Brown said it was looking for a cooperative approach with the union.
"I just can't see solving it by trying to do it completely on the backs of my employees," Cole said.
Posted by UFCW 227 at May 15, 2004 12:01 PM