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LUCKY STORES DECLARES IMPASSE IN CONTRACT TALKS WITH TEAMSTERS

 LUCKY STORES DECLARES IMPASSE IN CONTRACT TALKS WITH TEAMSTERS
 SAN RAMON, Calif., Sept. 28 /PRNewswire/ -- After nearly seven months of contract negotiations between Lucky and four Teamster locals failed to produce collective bargaining agreements, Lucky has declared that negotiations are at impasse. As a result, the company plans to implement certain portions of its final contract offer presented to Teamsters union truck drivers and warehouse workers in August. Implementation will begin Oct. 4. Federal labor laws allow unilateral contract implementation when a bargaining impasse is reached.
 "Lucky believes that it has no other alternative than to take this action, given that the union has failed to recognize the company's need for contracts that provide competitive parity," said David R. Cox, executive director of the Northern California Food Employers Council (FEC), which represents Lucky in negotiations.
 Under the contracts that expired April 30, Lucky's Teamster workers earn substantially more in wages and benefits than do Teamsters at other Northern California supermarkets. Lucky has sought to negotiate contracts that would put its distribution labor costs in line with its competitors.
 In Lucky's final offer, which Teamster members rejected by a 562 to 6 margin, the company offered a five-and-one-half-year contract which provided a $1.60 per hour increase over the term of the contract. The offer also included improvements to the pension plan, which would have provided significantly enhanced benefits. The contract offer also called for some benefit reductions, such as the number of paid holidays, the elimination of night premiums and paid lunch hours, which would have started the process of bringing the company in line with other major supermarket operators in Northern California.
 On Sept. 17, Lucky announced it was suspending plans to expand and modernize its distribution facilities, while it reviewed its entire warehouse and distribution operations. The company cited the protracted labor dispute with the Teamsters as one of the reasons for this decision. That effort is expected to continue.
 Lucky Stores notified the union of its contract implementation via certified letter sent Sept. 25 to Casey Sawyer, chairman of the Teamster Union negotiating committee.
 In the letter to the union, the company said the critical issue of economic parity had not been addressed. "Although a counter proposal was submitted by the union on Sept. 3... careful review of that proposal revealed that it increased the economic gap between Lucky and its competitors," the company said. The letter concluded that a bargaining impasse exists.
 "Lucky is ready to renew negotiations with the Teamsters at any time, provided the union is ready to present significant and substantial proposals which address the competitive parity issue," FEC's Cox said.
 Meanwhile, the company will implement those portions of its final contract offer which help to establish economic parity with its competitors. Additionally, Lucky's final offer calls for parity with a Teamster-negotiated contract now in binding arbitration with SDMI, Safeway's distribution third party contractor. A portion of the terms being implemented by Lucky tie directly to the outcome of the SDMI arbitration.
 Lucky employs 1,200 Teamster union workers at its warehouse and distribution facilities in San Leandro, Vacaville and Sacramento. Lucky's Northern California Division operates 188 stores and is headquartered in San Leandro.
 -0- 9/28/92
 /CONTACT: Mark Murray of Wong & Murray Public Relations, 510-932-6050, for the Food Employers Council/ CO: Lucky Stores; Teamsters Union; Northern California Food Employers
 Council ST: California IN: FOD SU:


TM-MC -- SF005 -- 4028 09/28/92 14:46 EDT
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Date:Sep 28, 1992
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