GROCERY TALKS ADVANCE, BUT ISSUES REMAIN.

Byline: JULIA M. SCOTT

Staff Writer

A few "major" sticking points are blocking a settlement of contract negotiations between grocers and employees, union officials said Monday.

Talks between Vons, Ralphs, and Albertson's and United Food and Commercial Workers have hit a snag on raises and funding of worker health care, said Rick Icaza, president of Local 770.

"I feel there is no question that a deal can be made," Icaza said. "But there are some major hang-ups and that's why we haven't reached a deal.

There has been progress, however, during eight consecutive days of talks, which sometimes went on until 2 a.m.

Both sides agreed to eliminate a two-tier system created during the last contract that gives richer benefits to veteran workers than new hires. The trade-off is that new workers will have to wait more than a year to reach the top tier.

Plans to negotiate further are being made at the end of each day, perhaps a sign that both parties feel they are close enough to a deal that they don't need to schedule talks far out.

"We talked through the weekend and we're talking again today," said Adena Tessler, a spokeswoman for the markets.

Any deal will require approval from union members before being ratified.

Talks have dragged on for months, forcing the union to ratchet up the stakes by authorizing a strike, making signs to carry during pickets and stocking food pantries to help feed workers during a job action.

The markets strengthened their hand at the bargaining table by agreeing to lock out all union members if one of the chains was struck.

Both sides said they wanted to avoid the 4.5 month-strike in 2003 and 2004 that cost the chains an estimated $2 billion in sales.

Talks became contentious enough that a federal mediator was called in to oversee the process. For months mediators have been ferrying proposals between the parties, called shuttle bargaining because neither side meets face to face.

A contract covering almost 70,000 grocery clerks across the region expired March 5. The contract was extended twice and automatically renews each day, with 72 hours required to cancel.

julia.scott(at)dailynews.com

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