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King Soopers Workers Reject Latest Contract Offer

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May 5, 2009 8:43 pm US/Mountain

King Soopers Workers Reject Latest Contract Offer

By Catherine Tsai, AP Business Writer
DENVER (AP) ― Union members at King Soopers have rejected the latest contract proposal from the grocery chain, with days to go before the existing contract expires.

United Food and Commercial Workers Local 7 says the sides still disagree on proposed cuts in pension benefits and a wage freeze for most workers. A King Soopers spokeswoman did not immediately return a phone message seeking comment Tuesday.

The sides earlier reached a tentative agreement to add more preventive health care, such as mammograms, to workers' health care benefits.

Contracts covering about 17,000 workers represented by UFCW Local 7 at King Soopers, Safeway and Albertsons expire May 9. The grocers coordinate on contract talks but negotiate separately.

Safeway workers are voting Friday and Saturday whether to authorize a strike if a contract isn't reached. Safeway meat warehouse workers have already authorized one.

King Soopers and Safeway have been accepting applications for temporary workers on the Front Range, in case of a strike. Western Slope negotiations begin later this month.

Contract talks have been contentious before. Federal mediators have been involved in talks between the union and at least one grocery chain in the last two major rounds of talks dating to 1999.

In 1996, King Soopers and Safeway workers agreed to a contract after a 44-day strike.

Last week, UFCW Local 7 filed a complaint with the National Labor Relations Board alleging the three chains are violating labor law by not disclosing certain terms of their agreement to team up in the bargaining. Union leaders are particularly interested in whether the chains have agreed to lock out all employees if union members at just one chain vote to strike. The chains have said they routinely coordinate on bargaining.

The union also claims King Soopers' offer of $10.25 an hour for potential temporary workers violates federal law because the wage exceeds the pay for many union workers.

King Soopers spokeswoman Diane Mulligan has said the proposed pay is less than the average wage for regular employees.

The union says grocery chains are pushing for concessions despite profits, as people eat out less and buy food to cook at home.

King Soopers contends it faces competitive pressure from non-union or low-cost chains like Wal-Mart, plus rising health care costs and the effect of the economy on the value of pension funds.

In discussing financial results for the first quarter, Supervalu Inc., which operates Albertsons, and Safeway executives have said they are feeling effects of the tough economy as shoppers hunt for deals.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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