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SAFEWAY CHAIRMAN SETS THE RECORD STRAIGHT ABOUT MOVE TO TRACY

 SAFEWAY CHAIRMAN SETS THE RECORD STRAIGHT ABOUT MOVE TO TRACY
 OAKLAND, Calif., April 14 /PRNewswire/ -- Safeway (NYSE: SWY) Chairman Peter Magowan told a Congressional Subcommittee today that, "Incredibly, after months of proclaiming that their goal was to secure jobs at our new Tracy facility, the Teamsters' hierarchy convinced their members to turn down those $34,000 a year jobs."
 Magowan said that Teamster handbills given out at Safeway stores stated, "If Safeway allows all of us the right to transfer to Tracy today, we'll end this boycott tomorrow."
 "They were offered the jobs," Magowan stated, "and yet, the same union leadership recommended that their members reject the job offers."
 Last week, Specialized Distribution Management Inc. (SDMI), the company that will operated Safeway's Tracy center, offered to hire every current Safeway employee at Richmond and Fremont with most rates more than $16 an hour. Teamster leaders urged their members to vote against the SDMI proposal.
 "The Teamster leadership has acted neither reasonably nor responsibly" in its representation of Safeway employees regarding the relocation of Safeway's Richmond and Fremont warehouses, Magowan charged. "Two years of bargaining yielded no response by the Teamsters' leadership to deal with our need to operate the Tracy facility efficiently," he added.
 Magowan pointed to figures showing that the Richmond/Fremont trucking operation is the most expensive, least productive of any Safeway operation in the company. Trucking costs per ton at Richmond and Fremont are 52.2 percent higher than the average for the company's other facilities, while driver costs per hour are 49.7 percent more expensive. In the Richmond grocery warehouse, just before it burned in 1988, productivity was 38.7 percent below the average of all other Safeway operations, costs per manhour were 31.2 percent higher and the employee cost per ton was 114 percent higher than other Safeway operations.
 Magowan said that he wanted to "set the record straight," charging that Teamster leaders have resisted all of Safeway's attempts to operate its new Tracy distribution center in a productive and efficient manner.
 The Safeway chairman called charges that Safeway is anti-union a "fantastic notion" and "rubbish." "Safeway is the most highly unionized company in the retail food industry. We employ more than 100,000 men and women (and have) 600 labor contracts. We are proud of our record as a union company...a record that includes the highest wages and benefits in the industry everywhere we operate."
 -0- 4/14/92
 /CONTACT: Brian Dowling of Safeway Inc., 510-891-3267/
 (SWY) CO: Safeway Inc. ST: California IN: REA SU:


MM-RM -- SF007 -- 8300 04/14/92 13:00 EDT
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Publication:PR Newswire
Date:Apr 14, 1992
Words:433
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