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Retail Expert Says Grocery Strike Unlikely

As grocery store chains and union workers try to negotiate a new contract, what is the future of grocery stores? We discuss the biggest threats to the "big three" grocery stores with a local retail ma

Retail Expert Says Grocery Strike Unlikely

(Photo: Henry’s Farmer’s Market, Full Focus/ KPBS ) Tom Fudge: Today, the San Diego Labor Council is sponsoring a rally in support of local grocery workers. The rally looks forward to tomorrow's deadline, set by the United Food and Commercials Worker's Union, to reach a settlement. They're negotiating with big grocery chains in Southern California. The union has said that if the chains continue to stall, they may call a strike vote.

San Diegans know that four years ago, a strike aimed at Vons, which is owned by Safeway, lead to a labor dispute involving Vons, Ralph's and Albertson's. Ralph's and Albertson's supported Safeway by locking out their union workers. The long strike resulted in a two-tier wage and benefit system for grocery workers. It's a system the union now wants to jettison. But the stores say they still face tremendous competition and thin profit margins.

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Meanwhile, a move by Whole Foods to buy Wild Oats, a corporation that owns Henry's in San Diego, has been challenged by the FTC. The FTC claims the sale is aimed at cornering the market in organic and natural foods. What’s going on in the grocery business?

Guest

  • George Whalin , founder of Retail Management Consultants of San Marcos, which provides business-building services to retail companies and industry suppliers across the nation.