CHICAGO/LOS ANGELES (Reuters) - The local unions representing grocery workers in Southern California walked out of contract talks on Wednesday, a spokesman said, after three grocery store chains authorized a lockout if the unions call a strike.þþ``We aren't negotiating anymore,'' said Mike Shimpock, spokesman for seven local United Food and Commercial Workers unions representing some 65,000 workers from Bakersfield to the Mexican border. ``We've walked out of the talks.''þþBut a spokeswoman for the three chains -- Supervalu Inc.'s (SVU.N) Albertsons, Kroger Co.'s (KR.N) Ralphs, and Safeway Inc.'s (SWY.N) Vons -- said negotiations were ongoing and the two parties were deciding when next to meet. She also cited an agreement between the parties that contract talks were not to be discussed.þþShimpock told Reuters the unions walked out of talks after learning through the media on Wednesday that the grocers had entered into an agreement that authorized measures including an employee lockout if grocery unions call a strike.þþWorkers at Albertsons passed a resolution last month giving the local unions authority to call a strike against the supermarket chain if contract negotiations break down. Both sides have been negotiating via a federal mediator since March 5, when the contract was set to expire. It was then extended until April 9.þþShimpock characterized the grocers' agreement as a ''provocative act that would indicate there is nothing more to talk about.''þþBut he added, ``We haven't decided what we're going to do yet. We're still debating what our next steps will be.''þþAfter the contract expires on Monday, it automatically renews each day until one party gives notice they want to cancel. After such notice is given, unless the parties reach an agreement within three days, the contract will expire -- at which point the union can call a strike or the grocers can call a lockout. þþLABOR DISPUTE REVISITEDþþBoth sides have said they want to avoid a strike. The unions and grocers still recall a bitter five-month labor dispute in 2003-2004 -- including a walk-out, lockout and strike -- that affected nearly 900 stores in Southern California and resulted in nearly $1 billion in lost sales.þþThat work stoppage, the U.S. grocery industry's longest, centered on disagreements over pay and health benefits. The grocers claimed they could not meet union demands because they were struggling to compete with non-union rival Wal-Mart Stores Inc. (WMT.N), the largest U.S. retailer.þþWhile details of the current dispute cannot be disclosed, a sticking point might be the two-tier pay system that gives less pay and benefits to more junior workers.þþThe grocers' agreement includes a provision calling for the lockout of employees from all three companies within 48 hours of a selective strike against any one company. The pact provides for financial assistance to any of the companies targeted by the unions in a strike, the grocers said.þþ``The decision to sign the agreement was made only after, and in response to, the unions' strike threat,'' the grocers' spokeswoman, Adena Tessler, said in a statement earlier on Wednesday. ``While none of us wants a work stoppage, the unions' recent strike authorization and threats of future strike votes must be taken seriously.''þþTessler said the unions were trying to put pressure on one company to agree to ``uncompetitive contract provisions and gain significant bargaining leverage against the other companies.''þþ
Source: NY Times
