Southern California UFCW Contract Expiring 3/6/22

[pseudo3d]

Ralphs is running tv commercials (first seen on Pluto streaming service) touting what they are claiming as their fair offer to their associates. They've also set up their own website www.ralphscba.com

Kroger is really going all out on this.

Kroger also set up a similar site when the Houston division threatened a strike last year and still seems to be negotiating still as of 1/31/22 (almost two months ago). But...as much as some on this site are pro-union, what did the 2004 strike accomplish besides kicking the can down the road? It made the unionized supermarkets less attractive to work at because new workers would never get the same benefits as older ones did and in general weakened their position to the point that three unionized supermarket chains would become two unionized chains in a course of about a decade.

And since Ralphs really doesn't seem to be a core market of Kroger's anymore, is it a stretch of the imagination that they'd pull the plug on it? Convert a few to Food 4 Less, sell a few to Albertsons or Stater Bros., maybe keep one as a delivery "spoke" warehouse, sell some sites, and restructure the rest as a non-union subsidiary.

[storewanderer]

Kroger also set up a similar site when the Houston division threatened a strike last year and still seems to be negotiating still as of 1/31/22 (almost two months ago). But...as much as some on this site are pro-union, what did the 2004 strike accomplish besides kicking the can down the road? It made the unionized supermarkets less attractive to work at because new workers would never get the same benefits as older ones did and in general weakened their position to the point that three unionized supermarket chains would become two unionized chains in a course of about a decade.

And since Ralphs really doesn't seem to be a core market of Kroger's anymore, is it a stretch of the imagination that they'd pull the plug on it? Convert a few to Food 4 Less, sell a few to Albertsons or Stater Bros., maybe keep one as a delivery "spoke" warehouse, sell some sites, and restructure the rest as a non-union subsidiary.

The 2004 strike was a complete failure (unless you were Stater Bros. or a non-union competitor in which case it was a windfall like no other). It resulted in dozens of additional closed stores for the chains, customer losses for stores that did stay open, stunted growth for the chains down there to this day (how many stores collectively have Vons/Ralphs/Albertsons opened since 2004- between them- suspect it is less than 12 stores total), resulted in Ralphs NorCal being killed, and may have also been the final push to Albertsons that caused finances to deteriorate to the point that the company needed to be split.

The two tier union pay scales were not unique to SoCal in 2004; that started back in the 1990's in many territories.

I think Ralphs is absolutely a core market for Kroger in/around Los Angeles. Ralphs has strong penetration in those counties. Ralphs may have fewer stores around San Diego but what they have performs strongly for a Ralphs. The chain "Ralphs" will definitely continue as a chain long term, around Los Angeles, there is no question. Ralphs doesn't seem to fit well with the rest of Kroger for a variety of reasons and this strike vote outcome is just another issue that may or may not resolve itself. If it isn't under Kroger it will be under someone else. But "Ralphs" as a chain will not cease to exist.

[storewanderer]

SoCal grocery store workers have overwhelmingly authorized a strike.
https://ufcw770.org/united/

https://www.nbcsandiego.com/news/local/ ... _sd_twt_mn

What is the situation with Stater?

I see a strike vote authorized against Ralphs and Albertsons/Vons.

What about the other unionized chains like Super A Foods?

[CalItalian]

SoCal grocery store workers have overwhelmingly authorized a strike.
https://ufcw770.org/united/

https://www.nbcsandiego.com/news/local/ ... _sd_twt_mn

What is the situation with Stater?

I see a strike vote authorized against Ralphs and Albertsons/Vons.

What about the other unionized chains like Super A Foods?

This was the latest statement last week from the union about Stater Bros. https://ufcw135.com/staterbros-update/

There hasn't been much mentioned about Gelsons or Super A Foods that I've seen or read.

[pseudo3d]

Kroger also set up a similar site when the Houston division threatened a strike last year and still seems to be negotiating still as of 1/31/22 (almost two months ago). But...as much as some on this site are pro-union, what did the 2004 strike accomplish besides kicking the can down the road? It made the unionized supermarkets less attractive to work at because new workers would never get the same benefits as older ones did and in general weakened their position to the point that three unionized supermarket chains would become two unionized chains in a course of about a decade.

And since Ralphs really doesn't seem to be a core market of Kroger's anymore, is it a stretch of the imagination that they'd pull the plug on it? Convert a few to Food 4 Less, sell a few to Albertsons or Stater Bros., maybe keep one as a delivery "spoke" warehouse, sell some sites, and restructure the rest as a non-union subsidiary.

The 2004 strike was a complete failure (unless you were Stater Bros. or a non-union competitor in which case it was a windfall like no other). It resulted in dozens of additional closed stores for the chains, customer losses for stores that did stay open, stunted growth for the chains down there to this day (how many stores collectively have Vons/Ralphs/Albertsons opened since 2004- between them- suspect it is less than 12 stores total), resulted in Ralphs NorCal being killed, and may have also been the final push to Albertsons that caused finances to deteriorate to the point that the company needed to be split.

The two tier union pay scales were not unique to SoCal in 2004; that started back in the 1990's in many territories.

I think Ralphs is absolutely a core market for Kroger in/around Los Angeles. Ralphs has strong penetration in those counties. Ralphs may have fewer stores around San Diego but what they have performs strongly for a Ralphs. The chain "Ralphs" will definitely continue as a chain long term, around Los Angeles, there is no question. Ralphs doesn't seem to fit well with the rest of Kroger for a variety of reasons and this strike vote outcome is just another issue that may or may not resolve itself. If it isn't under Kroger it will be under someone else. But "Ralphs" as a chain will not cease to exist.

Oh yeah, Ralphs won't just vanish overnight (and 300 stores, even counting Food 4 Less, is still a big number)...but I can imagine Kroger doing some major restructuring to/downsizing of the chain if they mean business.

[veteran+]

That's a great idea.

Kroger should downsize and hopefully another chain will come that has better relationships with Unions.

This is the perfect time for the Unions to be brave and assertive because the current employment environment is rarely pro employee.

[CalItalian]

SEIU tweets Southern California grocery chains will be going ON STRIKE.

[CalItalian]

I haven't seen this at any chain other than Ralphs

[norcalriteaidclerk]

Kroger may be on the verge of embarrassing itself out of at least the Golden State if not the West Coast entirely,and I thought failed second Ralphs foray into NorCal was one of their biggest missteps.*wonders if Fred Meyer stayed an independent company at the time of the ABS/ASC merger*

[pseudo3d]

That's a great idea.

Kroger should downsize and hopefully another chain will come that has better relationships with Unions.

This is the perfect time for the Unions to be brave and assertive because the current employment environment is rarely pro employee.

If unions are to survive, they need to rework their policies, politics, and upper management (I won't elaborate here, but feel free to shoot me a PM). The current situation of trying to ask for more money in an increasingly obsolete model is untenable, which is why in the latest round of strikes, the unions made very few actual gains.

For whatever reason (and there is much finger-pointing to go around, beyond the usual suspects), the grocery unions got backed against a wall. Take whatever concessions they can get, or...what's the alternative? The chain being put on the market, probably, but who would buy it? Realistically, some private equity vultures, causing the chain to suffer a slow and painful death. And let's be honest--that's an end-game scenario that no one really wants to see.