The chains would be content to sign a contract similar to what's now in place, because it slashed their labor expenses and made them more competitive with nonunion discounters.
The union, however, doesn't like the agreement, saying it split the grocery workers into a group of haves and a second tier of have-nots.
It wants to win higher wages for all of its members and a better healthcare insurance plan for that second tier of about 33,000 workers hired in the last 3 1/2 years.
Veteran workers' wages top out in a range that averages from $12.17 to $17.90 an hour, according to the employers. The exact pay depends on classifications such as general merchandise clerk, food clerk and meat cutter and how often the employee works Sundays and other shifts with premium pay. Second-tier employees top out at about $1 to $3 less.
Starting pay for second-tier workers begins at $7.55 for a clerk's helper, a nickel above the minimum wage. Workers with better-paying classifications can take home as much as $11.05 an hour.
New hires at Costco, by comparison, start at $11 to $11.50 an hour and rise to $17.80 to $19.50 after five years. Costco workers become eligible for health insurance after 90 days of employment. Trader Joe's employees start in the $9 to $11 range.
The outlook
The three chains have made little progress in several months of bargaining. The contract was set to expire March 5 but has been extended twice by mutual agreement. And now it goes day to day. Either side can terminate the contract with 72 hours' notice, a move that could prompt a strike or a lockout.
Certainly the stores don't appear to be ready for any type of work stoppage.
Although they could bring workers from nonunion markets in other regions to help out, they are not gearing up as they did three years ago, when they compiled rosters of potential replacement workers.
Federal labor relations experts are monitoring the situation. The Federal Mediation and Conciliation Service has its No. 2 official, acting Deputy Director Scot L. Beckenbaugh, working to help the chains and the union reach an agreement.
"This is a real significant negotiation, and there is the potential for an economically disruptive work stoppage," said John Arnold, spokesman for the agency.
On Friday, Arnold said negotiations had yielded "some progress," but he did not elaborate.
