ANAHEIM, Calif., Oct. 12 /PRNewswire-FirstCall/ -- Albertsons, Vons and
Ralphs characterized the union's decision Saturday night to call a strike
against Vons stores in Southern California as "a bad idea that inflicts
economic hardship on employees of the companies and inconveniences the general
public."
"We put forward a very good offer last weekend that the union leadership
rejected out of hand," said Vons President, Tom Keller. "Since then the unions
have misrepresented our offer, and appear to be determined to follow a strike
path that holds no upside for our people."
Contrary to union statements, the companies' offer for current employees
calls for no wage reductions. In fact, take home pay for existing employees
will increase over life of the contract. In view of the explosive growth in
health care costs, the companies are asking employees to share in a very small
portion of their health care benefits -- $5 a week for the employee's coverage
and $10 to $15 a week to cover the entire family. Supermarket employees in
Southern California currently enjoy some of the best, most comprehensive
health care benefits in American industry and the proposed contract offer
would continue to provide a superb benefit.
Regarding pension benefits, employees of the three chains also have one of
the most generous pension plans in the nation. When social security, retiree
health care and other benefits are factored in, a 62-year-old employee with 40
years of service can collect retirement benefits in excess of 150% of what
they make today. Yet, the offer on the table proposes to increase the hourly
contribution during the three years of the contract.
"Our proposal fairly and reasonably addresses two important business
realities," said Ralphs President, John Burgon. "Health care and pension costs
are skyrocketing and the competitive landscape has changed in Southern
California."
Albertsons' Southern California Division President Dave Simonson described
the union's strategy as "misguided and frustrating." He said "the unions have
not made a meaningful or reasonable response to the companies' comprehensive
proposal."
All three grocery companies will continue to operate their stores,
including their pharmacies, during the duration of the strike. Contingency
plans are now being actively set in motion at each of the companies to ensure
that stores remain open and staffed.
The unions agreed that a strike against one company would be considered a
strike against all three companies and as a defensive move Albertsons and
Ralphs will lock out their employees.
About Albertsons
Albertsons Inc., (NYSE: ABS) is one of the world's largest food and drug
retailers, with annual revenues of approximately $36 billion. Based in Boise,
Idaho, the Company employs more than 200,000 employees and operates
approximately 2,300 retail stores in 31 states across the United States, under
banners including Albertsons, Jewel-Osco, Acme, Albertsons-Osco, Albertsons
Sav-On, Sav-On Drugs, Osco Drug, Max Foods Super Saver.
About Ralphs
Ralphs Grocery Company was founded in 1873 and currently operates more
than 470 conventional and warehouse-style supermarkets in California and
southern Nevada, from its headquarters in Los Angeles. The company is a
division of the Kroger Company (NYSE: KR), one of the nations largest food
retailers based in Cincinnati, Ohio.
About Vons
Vons is a division of Safeway Inc., one of the largest food and drug
retailers in North America based on sales. The company operates 329 stores in
California and Nevada under the Vons and Pavillions banners. Safeway is a
Fortune 50 Company and had annual sales of $32.4 billion in 2002. The
company's common stock is traded on the New York Exchange under the symbol
SWY.
SOURCE Albertsons; Ralphs; Vons
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Related links:
http://www.ralphs.com
CONTACT:
Stacia Levenfeld of Albertsons,
+1-510-678-5444; Terry O'Niel of Ralphs, +1-310-884-4680; or
Sandra Calderon of Vons, +1-626-821-7291
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