http://www.pe.com/business/local/stories/PE_Biz_D_grocery23.830094.htmlExpert says both sides know pain of grocery strike
10:00 PM PDT on Friday, June 22, 2007
By LOU HIRSH
The Press Enterprise
As grocery workers head for a vote Sunday and Monday on whether to authorize a strike against Albertsons, Ralphs and Vons, some labor and economic experts say neither side can afford a repeat of the 141-day labor dispute of 2003-04.
"Both sides have the ability to crunch the same numbers," said Richard Paul, a San Diego lawyer who teaches employment law at the University of San Diego.
"Both sides know that another long labor dispute would be a lose-lose situation," Paul said Friday. "It's just a question right now of who's going to blink first."
AP photo
Grocery workers march in 2003. One unanswered question is how the second-tier wage earners will react to any proposal.
According to figures from Merrill Lynch and the Los Angeles County Economic Development Corp., the 2003-04 strike and lockout cost grocers around $2 billion in lost sales. Workers lost an estimated $800 million in wages.
It also led thousands of shoppers to go elsewhere, and many of those have yet to return to Southern California's three biggest chains.
A key factor likely to limit the duration of a labor showdown is today's competitive grocery climate. Wal-Mart is still adding grocery-selling Supercenter stores throughout Southern California; U.K.-based Tesco plans 15 to 20 Fresh & Easy Neighborhood Market stores in the Inland region; and Target will open a store that sells groceries next month in Moreno Valley.
FULL story at link.