"A number of very difficult issues have been addressed during those sessions, but despite the company's efforts to address our differences with Local 7, we have remained apart on pensions as well as other core economic and operational issues," said Kris Staaf, Safeway Director of Public Affairs.
"This LBFO is Safeway's best effort to reach new contracts with Local 7 and we haven't held anything back," said Staaf.
The LBFO includes a very attractive ratification bonus for all employees who have been employed for a year or more by the date of the ratification, a 52-month contract term, wage increases, shortened dependent wait time for health benefits coverage and access to a new first class health and care management program. The LBFO also contains pension improvements over the company's previous offer including partially restored pension accruals.
"We believe we have provided our employees with a significantly improved offer that allows us to effectively compete, and helps protect our business and the jobs of our employees that are threatened by the growing presence of non-union, low cost operators in Colorado," said Staaf
The extended contracts expired on September 12, 2009 and covered approximately 7,000 Safeway employees.