SoCal Lockout/Strike: Day 53

Dec 04, 2003
George Anderson

By George Anderson

Reports we’re getting from Southern California offer a mixed story on the impact the Teamsters’ walkout is having on product stock levels at the 800 plus stores owned by Albertsons,
Kroger and Safeway.

Approximately 8,000 drivers and distribution center workers walked off the job right before Thanksgiving in support of the United Food and Commercial Workers Union (UFCW). Store
employees, represented by the UFCW, were locked out 53-days ago when the chains and the union could not reach an agreement on a new labor contract.

It is expected Albertsons, Kroger and Safeway will comment on the impact of the UFCW lockout/strike and Teamsters walkout in conference calls with analysts this week and next.
All of the chains will offer Webcasts of those meetings.

Webcast Schedule

Today Safeway 8:00 AM PST

12/5 Albertsons 8:30 AM EST

12/9 Kroger 10:00 AM EST

Moderator’s Comment: How will the labor situation affect each chain involved in the lockout/strike?

We don’t have qualitative information to substantiate it, but personal accounts we’ve gotten suggest Vons and Pavilions (owned by Safeway) have had the
hardest time of the three chains in getting product to the store and customers to cross the picket lines.

Kroger appears to have suffered the least impact, although it too has been hurt by what has transpired over the past 50 plus days. [George
Anderson – Moderator

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