Northern California Safeway Employees Reach Tentative Agreement, Averting Strike

Update, 11:45 a.m. Sunday

A potential strike involving thousands of unionized Safeway employees has been averted after they came to a tentative agreement with the grocery giant early Sunday morning.

The tentative agreement came after five months of negotiations, and gives workers a wage increase, a stronger pension plan, improved scheduling and affordable healthcare.

“This is a hard-earned and inspiring victory,” said UFCW Local 5 President John Frahm and UFCW Local 648 President Dan Larson in a joint statement. “Because our members stood together—strong and unshakable—they secured a contract that reflects their value and delivers real improvements for their families and futures.”

Union leaders said they plan to schedule ratification votes in the coming days, and are confident members will sign off on the deal.

“We are pleased to have reached a fair and equitable tentative agreement with the UFCW locals in Northern California,” wrote Justin Hendrickson, a spokesperson for Safeway. “We appreciate the union’s partnership in reaching a contract that will benefit our associates and allow us to continue to serve our customers.”

The strike — originally scheduled to begin Saturday morning — was put on hold as members of United Food and Commercial Workers attempted to get higher wages and better and more affordable medical benefits.

Jim Araby, spokesperson for UFCW Local 5, said in a statement Saturday morning that the union gave a midnight deadline “to get a deal done.” If not, union members will be on strike beginning at 12:01 a.m. Sunday “at numerous locations across Northern California.”

While members voted to authorize a strike earlier this month, they cited “incremental progress toward a tentative agreement members can review and vote on,” according to a joint statement published early Saturday morning by three UFCW local chapters that represent workers across California.

“This recognition of our pressure and member solidarity is working,” UFCW Local 5 President John Frahm, UFCW 8-Golden State President Jacques Loveall, and UFCW Local 648 President Dan Larson in a joint statement. “Our members remain mobilized and ready, but as long as talks are advancing toward a fair deal, we will continue to bargain in good faith.”

Original story

Bay Area residents may have to change their grocery shopping plans this weekend as Safeway workers in Northern California threaten to go on strike Saturday if a labor contract is not secured.

More than 20,000 workers represented by the United Food and Commercial Workers could walk out if a strike is called, which the union said would happen if they don’t reach an agreement with Safeway by Friday night. The labor group is seeking higher wages and increased benefits for grocery store employees, among other concerns.

“We have been in round-the-clock negotiations since yesterday morning and continuing through the day. There’s been some progress, but not enough as it stands,” Jim Araby, a spokesperson for UFCW Local 5 in Hayward, said Friday.

While UFCW and Safeway leaders are still at the bargaining table alongside a federal mediator, Araby is skeptical they will be able to reach an agreement and have workers vote on it before the union’s deadline.

More than 200 Safeway stores could be blocked by picket lines if a strike occurs, Araby said, adding that 95% of union members voted to approve the strike earlier this month.

Workers have been unable to keep up with exorbitant cost-of-living increases in the Bay Area, and health care costs have also gone up for the union’s members, he said.

A spokesperson for Safeway said in a statement that the company is committed to engaging in good-faith negotiations with UFCW Local 5 and other labor groups in Northern California, while also balancing the needs of customers and the corporation’s growth in a “highly competitive grocery industry.”

“While we are disappointed that the unions have indicated the possibility of a strike at some of our stores, we fully respect our associates’ right to engage in collective bargaining,” the statement reads. “We are hopeful a resolution will be reached soon.”

Safeway and its parent company, Albertsons, can afford to give workers better wages and benefits, Araby said, noting that the parent company reported a net income of nearly $1 billion last year and paid stockholders a $4 billion dividend in 2023.

“We know they’re doing well,” he said.

Since word of a potential strike has spread, workers have reported seeing signs advertising that the company is looking for replacement workers. While union members negotiate for more equitable wages, Safeway plans on paying their temporary replacements $27 per hour — more than most of its workers make, Araby said.

“Most members feel like it was a massive slap in the face,” he said. “It’s definitely influenced our members to want to go out on strike. … It’s a typical tactic by employers to try to bring up doubt among the rank and file.”

It’s been a busy few months for labor groups in the Bay Area.

In early July, more than 2,000 workers across the country went on strike after months of labor negotiations with waste management company Republic Services hit a standstill. A tentative agreement was reached between the parties last week, after Bay Area residents and officials issued complaints about trash piling up on sidewalks and in driveways.

According to Araby, the increase in labor action speaks to workers’ increased frustrations about low wages, poor benefits and other labor conditions. The disparity between employers and their workers is growing, and people are fed up with wealthy corporations not treating their employees fairly, he said, adding that whether workers decide to keep going is up to companies like Safeway.

“We’re interested in bringing forth a proposal that our members will be able to vote for. We want to avoid a work stoppage,” he said. “But our members have been clear to us that they’re ready to take one if the deal is not good enough.”