Fry's, Safeway hiring temps as strike looms

Fry’s and Safeway grocery stores and United Food and Commercial Workers Local 99 in Phoenix remained at odds Monday over a new contract and threatened strike.

Union members had voted to strike citing issues including health care premiums, pension funding and salaries as the union and employers flailed in negotiations to renew a contract extension that expired Oct. 31.

Fry’s Food Store spokeswoman said the Kroger Co. subsidiary is advertising for replacement workers in anticipation of a strike, but hopes workers will be allowed to vote on the latest proposal. Safeway Inc. also is hiring temps.

The union has set a Nov. 13, 6 p.m. deadline for receipt of an acceptable offer. Negotiations will continue this week, said Cathy Kloos, Safeway director of public affairs for Arizona.

“Fry’s has offered a good proposal in a very difficult local economy,” said Joellen Lynn, director of public and community affairs for Fry's Food Stores Phoenix. “We are puzzled why the union would not allow a vote.”

UCFW, however, has been adamant in its position, according to negotiation updates and other information on its Web site. A Nov. 7 posting said: “There is an absurd notion being floated by employers that the union should re-vote their unacceptable proposals. Nothing the employers have proposed has changed substantially.”

To prepare for the possibility of a strike, Fry’s has already hired and is training 2,500 temporary workers to continue service at its stores, which have been operating in Phoenix since 1960. Lynn said there currently are no plans to cut store hours if a strike should occur. The emphasis will be on temporary hires and pushing for another vote, she said.

Kloos said there has been a huge response to its ads for temporary workers with lines at all eight interview locations across the state.

Lynn said the latest proposal would not impose co-premiums for existing employees’ health insurance coverage. New hires would have to pay between $5 and $15 a week, depending on the number of people covered.

It also calls for varying salary increases depending on employee status, $7 million in new funding to stabilize the company’s pension fund, and gift cards.

The proposals from both food chains are the same, Kloos said, adding that officials feel the offer is "reasonable." Health care remains the sticking point she said, noting the proposed premiums for new hires are "less than most people across the country pay."

The union counters that co-premiums could still become a reality for all workers and that wage increases are not adequate.

Fry’s has 120 stores and employs 17,000 in the state. About 12,000 of those are union members, Lynn said. Safeway has 116 stores with about 10,000 potentially affected by a strike. Union officials did not respond to requests for comment.