GROCERY CONTRACT EXTENDED MAJOR CHAINS, UNIONS NOW HAVE 2 MORE WEEKS TO TRY TO SEAL DEAL.

Byline: JULIA M. SCOTT

Staff Writer

Seven Southern California grocery unions and three major chains have agreed to extend a contract that covers thousands of workers just hours before it was due to expire, a federal mediator said Monday.

The extension reduces the risk of a strike and gives both sides two more weeks to hammer out a permanent contract.

Some 70,000 United Food and Commercial Workers members employed by Ralphs, Vons and Albertsons will continue working under the terms of a three-year agreement that was set to expire at 11:59 p.m. Monday.

Under the extension, which will expire March 19, any benefits negotiated will be retroactive to Monday as long as there is no strike or boycott, said Mike Shimpock, a spokesman hired by the unions. The extension also sets dates both parties will sit down to talk, he said.

"It's very unlikely there will be a strike or lockout in the next two weeks as long as the markets negotiate in good faith with us," Shimpock said. "It's a turning point in the negotiations."

Adena Tessler, a spokeswoman hired by the chains, said the "extension is just a step in the direction of coming together to achieve a mutually beneficial agreement."

The extension was requested by mediator Linda Gonzalez of the U.S. Federal Mediation and Conciliation Service.

If two weeks is not enough time to reach a new deal, the extension can be renewed. Tessler said she could not speculate on whether the chains would be open to another extension.

Though the deal only buys two weeks of time, it virtually eliminates the chance of a strike, according to Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.

"The unions can't afford it, and the grocery chains themselves can't afford it," Kyser said of a strike or lockout. "This is very grown-up thinking, and it takes away a little of the uncertainty."

If the extension expires before a new deal is reached, workers can take a strike-authorization vote that, if approved, would allow them to strike at any time. Workers can continue working without a contract or agree to a second extension.

Negotiations fell apart three years ago, leading to a 139-day strike -- one of the longest in the nation's history. Both parties eventually agreed to a two-tier benefits system for employees, which remains a point of contention.

The system gives veteran employees richer benefits than new hires, and it has led to high turnover and training costs, the union said. But the chains say the system is working just fine.

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