In the negotiations three years ago, the major chains sought to drive down their labor expenses so they could better compete with discounters and warehouse chains such as Costco Wholesale Corp., Wal-Mart Stores Inc. and Target Corp., all of which have become major food retailers.
The traditional chains continue to face those competitors, as well as specialty grocers such as Trader Joe's and Whole Foods Markets Inc. and a growing group of nonunion ethnic supermarkets.
In addition, giant British retailer Tesco will open stores in Southern California this year under its plan to spend $2 billion over five years to expand throughout the region and into Las Vegas and Phoenix.
Although the grocery workers union plans to refer to its agreements with Gelson's, a unit of Arden Inc. of Compton, and Stater Bros. in talks with the large employers, it is unclear whether they will make any difference in the outcome.
"Like Stater Bros., Gelson's is a small regional employer that has never been part of the negotiating process with the major grocery employers in Southern California," said Adena Tessler of Rogers Group, a Century City public relations firm hired by the three major chains to speak about the contract talks.
Gelson's, a high-end chain known for its gourmet prepared food and extensive selection of produce, opened its first market in Burbank in 1951. The chain has grown slowly to 18 stores, mostly in Los Angeles and Orange counties, and has about 1,700 employees in the grocery workers union. Stater Bros., with 162 stores and more than 13,000 union workers, is far larger and competes for the middle market with the three major chains.
Albertsons, by comparison, has 249 stores and 22,000 union employees. Ralphs operates 262 stores with almost 20,000 union workers. And Vons and Pavilions have a combined 274 stores and nearly 24,000 employees.
Negotiations between the major employers and the seven union locals are still in their initial stages, according to people familiar with the talks.
"We have presented them with an array of proposals and have had some good dialogue," said Greg Conger, president of Local 324 in Buena Park.
Conger declined to provide details. Others, however, said the two sides had yet to hold substantive discussions about wages and healthcare benefits.
"Unless things get started in the right direction, I can see a strike authorization vote," Icaza said. "So far, we have just been playing musical chairs."
jerry.hirsch@latimes.com
