California Teamsters Strike at Smart & Final Distribution Centers
More than 600 warehouse workers represented by Teamsters Local 630 at two Smart & Final grocery store warehouses in Southern California reportedly went on strike on June 19, alleging mass layoffs and other unfair labor practices. The move could mean massive supply chain headaches for the grocery retailer during one of the busiest shopping times of the year. This is the second such strike held by these workers.
“The clock is ticking for Chedraui/Smart & Final to make things right,” said Lou Villalvazo, secretary-treasurer at Los Angeles-based Teamsters Local 630. “The company is continuing to commit unfair labor practices without any regard for its workers. With the busy summer months approaching, the company faces not just a moral but a logistical crisis. They need to act now to guarantee our members their jobs, decent wages, respect and a fair contract. We will not stand by and watch these workers be exploited.”
The union objects to Chedraui USA’s plans to close two unionized Smart & Final warehouses in Commerce and Riverside, Calif., and lay off the workers at those facilities. These employees would have to reapply for employment at $10 to $12 less per hour at a new warehouse in Rancho Cucamonga, Calif.
The Teamsters are currently pursuing various unfair labor practice charges before the National Labor Relations Board. The union has also accused Smart & Final of bad-faith bargaining and maintaining an illegal proposal that violates California Assembly Bill (AB) 647, which went into effect this past January and guarantees grocery distribution center workers retention rights when the facilities where they work undergo a change in control.
The two warehouses at issue serve more than 250 Smart & Final grocery stores in California, Nevada, Arizona, and northern Mexico.
In 2023, employees at the Commerce and Riverside facilities successfully voted to join Teamsters Local 630 despite the fact that Smart & Final revealed it would close the facilities a little more than a week before the Riverside election.
When contacted by Progressive Grocer for comment, Chedraui USA responded forcefully, disputing the union’s allegations and even the number of striking employees: “The Teamsters’ claims are simply not true. We are currently integrating five outdated and capacity-strained facilities that are spread across 2,000 square miles. Our new facility will employ nearly 1,000 people, creating hundreds more American jobs than exist today. This will substantially reduce our carbon footprint and enable us to continue providing affordable food to communities in California that need it the most.
Additionally, the claim of 600 workers striking is wildly inaccurate. We are operating our distribution centers as usual, with no major disruptions, in order to continue to serve our customers who rely on us to feed their families.”
Based in Commerce, Calif., Smart & Final was acquired in 2021 by Chedraui USA, a Los Angeles-based grocery retailer with 25,000 associates at 380 store locations across three banners: Fiesta Mart, El Super, and Smart & Final. That business is a subsidiary of Mexican supermarket operator Grupo Comercial Chedraui, which is No. 50 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
