Deal Ends Raley's Strike

Raley's and the United Food and Commercial Workers union announced on Tuesday that they have struck a deal ending a strike at the supermarket chain.

The details won't be released until the deal is ratified by the union members, both parties said.

About 7,000 workers went on strike Nov. 4 at stores Raley's owns under both the Raley's and Nob Hill names.

Both the store management and the union leadership said they were happy with the tentative deal.

“This is very exciting because this contract provides us with the cost savings we need to fund our vision and the initiatives to make us more competitive in the 21st Century,“ said Mike Teel, president of Raley’s of Family Fine Stores in a statement on the store's website.

Jacques Loveall, president of UFCW Local 8 said the deal met some of the union's core demands. "Because of your Solidarity and strength, we were able to address competitive challenges while also retaining and funding the Union health care plan for both active members and retirees," he said on the union's website.

In a longer statement released as a YouTube video, Loveall hinted that the union had made concessions. "Our tentative agreement addresses the company's competitive challenges," he said:

Raley's said it needed to cut costs because of competition from nonunion grocery stores. The store's workers balked at a proposal to cut healthcare benefits for workers eligible for Medicare.

Raley's claimed its revenues were rising after a dip from the strike, but may have felt pressured by deals the union struck with other unionized supermarkets, the Sacramento Bee reported.