(The following story by Nicholas Grudin appeared on the Los Angeles Daily News website on November 4.)
LOS ANGELES — Ralphs stores throughout Los Angeles continued to see business surge Monday, a result of the union’s decision to remove picket lines from all 300 of the chain’s Southern California stores in order to increase the pressure on Vons and Albertson’s.
Ralphs officials said they expected continued crowds at their stores, as shoppers opt against picket lines and specialty stores in favor of convenient, cheap shopping.
Although there have been long lines and sparely stocked shelves, Ralphs is reaping the benefits.
“We saw a large increase in sales and customer traffic, typically in those areas where a Vons and or Albertson’s was located nearby,” said Terry O’Neil, spokesman for Ralphs. “We were not only seeing our old customers return, but a lot of new customers are in our stores.”
Last week, United Food and Commercial Workers Local 770 president Rick Icaza announced that Ralphs picket lines would be redistributed to Albertson’s and Vons in order to “maximize our target.”
Now in the 24th full day of the supermarket strike, no new negotiations have been scheduled, and Albertson’s and Vons did not comment on how their business has been affected by the increased business at Ralphs.
“I can’t comment on that, but I can tell you that our stores are in business,” said Stacia Levenfield, a spokeswoman for Albertson’s.
In a joint statement of response to the union’s move, supermarket officials said the move was a transparent ploy to pit the supermarkets against each other, a ploy which would fail.
“This in no way changes the fact that we are in a labor dispute and Ralphs remains united with Albertson’s and Vons toward a resolution,” O’Neil said.
Experts say the union’s risky “divide and conquer” strategy appears to be working, in that it is giving Ralphs a distinct advantage in a very competitive regional grocery market that is dominated by the big three chains.
“It definitely ratchets up the pressure on Vons and Albertson’s,” said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. “Both sides are doing a check and checkmate situation.”
Kyser said that, although the initial effect of the removal of Ralphs pickets favors the union, it could backfire, since UFCW dropped all the pressure on the largest of the three chains.
“This is literally like a gift to Ralphs — you go from being struck to all of a sudden having costumers channel through your front door,” Kyser said.
Among the other effects of the removal of Ralphs pickets has been a shortage of food and other products at their stores.
The work stoppage began Oct. 11 after last-ditch negotiations failed. United Food and Commercial Workers employees struck all Vons and Pavilions stores throughout Southern California, and in response, Albertson’s and Ralphs locked out their union employees.
The primary dispute between the two sides is health benefits, which the employers are trying to cut in order to remain competitive as Wal-Mart and other big-box stores enter the Southern California