UFCW Wants Alternative to Supervalu
By George Anderson
Two presidents of United Food & Commercial Workers’ locals have thrown
cold water on the prospects of a negotiated deal with Supervalu over its acquisition
of Dominick’s Finer Foods from Safeway.
United Food & Commercial Workers Local 881 President Ronald Powell and
Local 1546 President Kenneth Boyd told the Chicago Sun-Times, “We remain
confident that discussions with other potential bidders will result in a favorable
agreement whereby Safeway will ultimately sell Dominick’s.”
The union’s leadership reportedly favors Yucaipa over Supervalu or Roundy’s
in the bidding to take over Dominick’s.
Moderator’s Comment: Does the eventual winner of the
Dominick’s sweepstakes need union backing to acquire and turn the business around?
Neil Stern, analyst, McMillan Doolittle, said union approval
is crucial for the new owner if it intends to turn Dominick’s around. He said,
“The first thing a buyer has to do is make peace with the unions and obtain
an agreement it can live with,” Stern said. [George
Anderson – Moderator]