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FOOD LION LABELS UFCW LOCAL 1000'S INTENTION TO PICKET AN ACT OF DESPERATION

 FOOD LION LABELS UFCW LOCAL 1000'S
 INTENTION TO PICKET AN ACT OF DESPERATION
 DALLAS, April 9 /PRNewswire/ -- A Food Lion (NASDAQ-NMS: FDLN) executive labeled UFCW Local 1000's intention to picket and distribute handbills at Food Lion's stores a desperation move to pressure the company into bypassing the will of its workers.
 Local 1000, an affiliate of the United Food and Commercial Workers Union, outlined its plan against Food Lion in mid-March correspondence to its executives. Local 1000 represents workers at Kroger who were recruited to picket and distribute handbills in front of Food Lion stores.
 Mike Mozingo, Food Lion Corporate Communications Manager, said, "UFCW charges of substandard wages and benefits are ridiculous. Just ask our employees. We pay competitive wages, we have the best profit-sharing plan in the industry and an unmatched program of health and other benefits."
 Local 1000's correspondence indicated that Food Lion's low prices were an " ... unfair competitive advantage ... a direct threat to the jobs of our members ..."
 "Food Lion's lower prices are the real issue," said Mozingo. "We're creating thousands of new jobs each year because we're able to offer customers name brand products at the lowest everyday prices. Customer support, in turn, enables us to expand into new markets. We expect to add a hundred stores this year alone."
 Mozingo said the picketing is just the latest chapter in a decade-long campaign by the UFCW against Food Lion. In 1980, the UFCW mounted a massive organizing campaign against Food Lion which was an utter failure. Ever since, Food Lion has been the target of an intimidating and harassing campaign by the UFCW.
 Food Lion, the nation's fastest growing supermarket chain, with more than 50,000 employees, operates nearly 900 stores in 12 states including 42 in the Dallas/Fort Worth area.
 FOOD LION INC., FOREIGN OWNERSHIP
 FACT SHEET
 - Food Lion, Inc. is partially-owned by Delhaize Le Lion, the third
 largest publicly traded company in Belgium.
 - Delhaize Le Lion owns 50.3 percent of Food Lion Inc.'s voting
 stock and 44.2 percent of Food Lion's total stock. Delhaize Le
 Lion is not involved in the day-to-day operation of Food Lion.
 They receive dividends on stock as would any shareholders.
 - Over 30,000 Americans own stock in Food Lion including many of
 its employees.
 - The entire operation and administration of Food Lion's business,
 particularly labor and employee relations, is totally within the
 exclusive province of U.S. management without involvement by
 foreign shareholders in any way.
 - Delhaize Le Lion is contractually bound to stay out of day-to-day
 operations of Food Lion. This has been true since it first
 established its shareholder interest in Food lion in 1972.
 - 75 percent of profits generated by Food Lion are invested back
 into the business to sustain Food Lion's phenomenal growth,
 averaging over 100 new supermarkets and 5,000 -- 8,000 new jobs
 each year.
 - Foreign investment in the U.S. supermarket industry is common.
 Consider the following:
 Supermarket Chain Foreign Investor Percent Owned
 Grand Union GND Holdings (US Based) 100 percent
 Great Britain
 (A) A&P Tenglemann, German Not listed
 (US Affiliate)
 Bi-Lo Ahold, Netherlands 100 percent
 (Subsidiary)
 (A) Giant Ahold, Netherlands 100 percent
 of Carlisle, PA (Subsidiary)
 Auchan French 100 percent
 (A) CarreFour French 100 percent
 Food Lion Delhaize, 44.2 percent
 Belgium
 (A) Indicates Unionized supermarket chain
 -0- 4/9/92
 /CONTACT: Mike Mozingo, Food Lion, Inc., 704-633-8250 ext. 2575/
 (FDLN) CO: Food Lion, Inc.; UFCW ST: North Carolina, Texas IN: REA SU:


CM-JZ -- CH006 -- 6911 04/09/92 16:00 EDT
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Apr 9, 1992
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