Negotiators for the big grocery chains and store clerks have reached a tentative agreement on the thorny issue of health benefits, making it increasingly likely that Southland shoppers won't endure a strike this summer.
Both sides are guarded in their public comments, noting that hurdles remain. But "we are closer than the rhetoric would lead one to believe," said one person familiar with the talks.
The optimism at the bargaining table has filtered down to the rank and file. Workers hope to avoid a repeat of the five-month strike and lockout that hobbled supermarkets in 2003-04.
"I think it is less likely we are going to have a strike now," said Hugh Evans, a union butcher at an Albertsons in Baldwin Hills. "The negotiations have gone on so long and I think that means they are at the table, really working hard to get an agreement."
Talks began in January with strong rhetoric from both sides, including threats of worker strikes and employer lockouts.
But in recent days, negotiators have agreed on a plan to improve health insurance for the 33,000 "second-tier" workers who were hired after the 2004 accord and get reduced wages and benefits. Some believe a deal will be concluded before July 4.
As in 2003, healthcare coverage is the most contentious issue -- and resolving it is considered the key to a new pact. Both sides say they cannot publicly discuss details, however, because of a news blackout requested by a federal mediator.
Movement in the discussions comes against a backdrop of improving conditions for the large supermarket companies. Profits are healthy, and the rapid growth of archrival Wal-Mart Stores Inc. has stalled. In addition, the national chains have expanded their selections to better compete with nontraditional retailers such as Target Stores Inc. and Whole Foods Markets Inc.
Nonetheless, people involved in the talks expect more hard bargaining in the coming weeks. They still have to hammer out a pay hike for 65,000 employees, who have not had an hourly bump-up since 2002.
On the issue of healthcare, negotiators for the United Food and Commercial Workers union and the Albertsons, Ralphs and Vons chains have agreed in principle to reduce the time it takes new employees to qualify for insurance coverage to six months.
Under the existing pact, new workers must wait either one year or 18 months, depending on the job. Children of employees also would be covered in six months under the new accord instead of 30 months, and the waiting period for spouses would fall to 24 months from 30 months.
