Safeway Inc. has reached a tentative agreement on a new three-year labor agreement with United Food and Commercial Workers Union (UFCW) Locals 5, 8 and 648 representing the company's employees in Northern California. The new agreement will be recommended for ratification by the local unions to their members.
"This new agreement provides our employees with among the best wages, benefits and working conditions in the region, while ensuring the company can compete successfully in the future, " said Karl Schroeder, president of Safeway's Northern California Division.
The agreement also provides that Safeway will remain in the health and welfare fund, jointly administered by union and employer trustees, for the term of the agreement for all eligible employees and retirees.
The tentative agreement was the result of many months of negotiations during which the complex issues surrounding healthcare, employee compensation and other matters were addressed using solutions benefiting both employees and the company.
Plesanton, Calif.-based Safeway operates 1,644 stores in the United States and western Canada.