March 21, 2007

Study: Grocery Stores Do Not Provide For Employees

New Report Says Newer Pay Scale Reflects Economic Divide

(CBS) LOS ANGELES According to a study released by the Commission of the Los Angeles Grocery Industry and Community Health, grocery stores have changed from an economic sector that provided well-paying jobs that supported the middle class into an industry that provides low wages and few benefits.

Additionally, a "two-tier" pay scale that went into effect in 2004 after a contentious, nearly five-month long strike and lockout, "hurts worker morale and leads to high turnover." according to the report.

The Commission of the Los Angeles Grocery Industry and Community Health is a consortium of politicians and religious leaders.

Some of the study's participants will discuss their findings at a news conference at City Hall Wednesday morning.

"This two-tier system reflects the increasing polarization of wealth in Los Angeles, the most economically segregated region in the country," the Rt. Rev. Jon Bruno, the Episcopalian bishop of Los Angeles, and Rabbi Mark Diamond, executive vice president of the Southern California Board of Rabbis, wrote in the report.

"Its impact on public health has been profound, contributing to the health care crisis and alarming rates of nutrition-related diseases in low-income communities."

The report's release comes as the United Food and Commercial Workers union is negotiating a contract with the Southland's three major grocery chains.

On Monday, the union agreed to extend contract talks for three weeks -- the contract was set to expire this week -- but moved Tuesday to maintain pressure on the grocers by scheduling a vote Sunday on whether to authorize a strike against Albertsons at some future date.

Union officials said in 2006 that Albertsons will probably be the first target of any separate action because the level of debt at Supervalu Inc., its corporate parent, made it less able to withstand a strike, the Los Angeles Times reported. Supervalu, based in Eden Prairie, Minn., borrowed $6.1 billion last year to purchase Albertsons and its high-end, non-union sibling, Bristol Farms.

Three years ago, the UFCW and the parent companies of Albertsons, Ralphs and Vons/Pavilion settled on a two-tier pay and benefits structure to settle a labor dispute in which workers were off the job from Nov. 11, 2003 to March 2004.

The union aims to eliminate the two tiers, in which workers hired after the lockout are paid at a lower scale than veteran grocery workers. Union leaders are also asking the supermarkets to contribute more to the employee health insurance trust fund.

The contract covers more than 70,000 Southland grocery workers.

Workers who were hired after the strike must wait 18 months before they are eligible for health care benefits. Many choose not to be covered because of high co-payments, according to UFCW officials. Family members are not eligible for health insurance for 30 months.

Only about 7 percent of grocery workers hired after the strike are covered by employee health insurance, compared to 94 percent under the old contract, according to a study released earlier this year by UC Berkeley's Center for Labor Research and Education.