Nearly 26,000 clerks and meatcutters employed by Giant Food and Safeway in the Baltimore-Washington region ratified new three-year labor contracts with United Food and Commercial Workers (UFCW) Locals 27 (Baltimore) and 400 (Landover, MD) late last month.
After bargaining contracts jointly for the past 40 years, the region’s largest two grocery chains negotiated separately this time. Safeway and the UFCW Locals reached an agreement in early November, but the agreement with Giant could not be reached at that time, with the labor unions claiming that the large Ahold USA unit was seeking unrealistic concessions involving Sunday overtime pay and existing retirement plans. Both unions released a statement asserting “we deserve to share in the success we have built.”
While bargaining continued, strike preparation plans were put in place by the Locals 27 and 400. However, less than a week after Safeway inked its new deals, Giant and the UFCW Locals announced that a new agreement had also been reached.
“We are very pleased that our associates ratified the contract agreement reached by Giant Food and UFCW Local 400 and Local 27,” said Giant Food president Gordon Reid. “Throughout negotiations, our goal was to reach an agreement that ensures our associates continue to be among the highest compensated grocery workers in the Baltimore-Washington area, while also positioning Giant Food to remain competitive in a challenging marketplace. We are pleased the contract achieves this goal and recognizes the outstanding contributions and hard work of our associates.”
At Safeway, approximately 11,000 clerks and meatcutters agreed to the new pact. Reportedly, Safeway’s labor negotiating team reviewed key issues such as wages and health care and retirement pensions. Safeway had previously entry level minimum wage with all associates now earning more than $9 an hour. The Lanham, MD-based division of Albertsons also agreed to maintain the current health care plans through the duration of the contract.
The agreements were ratified on November 16 by members of both unions.
The original contracts expired on October 29 and were extended twice while negotiations continued. The new pacts will expire Oct. 29, 2019.
Grocery workers will receive an average of an additional $3.35 per hour in compensation during the next three years under the contract. That includes wages, health, pension and other benefits.
“This is one of the best retail food contracts in the country,” said Local 400 president Mark Federici.
An announcement on Local 27’s website said: “In the end, we were able to settle on what we believe is a fair agreement. We successfully prevented take backs.”
On UFCW Local 400’s website a statement read: “We didn’t get everything we wanted, but both contracts include several key improvements over our previous collective bargaining agreements, including: higher starting pay; more frequent wage progression increases; wage progression increases by months of service, instead of by number of hours worked; no cost increases to employee health insurance; and a plan to secure its employees’ pensions.”