Trusted local news leader for Prescott area communities since 1882
Thu, April 25

Grocery strike raises picket signs over wages

The third annual peace and justice rally, this time focusing on getting the troops home and ending the "Patriot Act," will be on the courthouse plaza from noon to 4 p.m. on Nov. 1. There will be speakers, music, yours truly, and all on a positive note.

But today's topic is the strike by grocery workers at stores in Southern California. The dispute involves Safeway, Von's, Albertson's, Kroger, Ralph's, and Fry's stores, and is also an issue here in Arizona and other states. As of this writing Arizona workers aren't on strike, but their contract will have just expired when this is printed.

Why support unions? In the free market system there is always pressure to push the wages of the lowest-paid workers down. Where there are no unions or minimum wage laws the lowest-paid workers literally get just enough to not starve. Adam Smith, the patron saint of the free market, said so, it is proven out in nations around the world, it was common in this country less than a century ago, and it is still true wherever it can be gotten away with, such as those who employ illegal immigrants.

The labor pool has to be looked at globally. While the job of bagging groceries cannot be shipped overseas, the job of making grocery bags can. So when the former employee of the bag plant is out looking for work and having to accept lower wages, that puts downward wage pressure even on the jobs that stay here.

The only thing that offsets this pressure is unions and laws such as the minimum wage. The economy in the U.S. changed dramatically from the late 1800s to the 1950s. In the 1800s we had the robber barons, the huge difference between rich and poor, child labor and all the rest. In the 1950s we had a narrower gap between rich and poor and generally better jobs for the middle and working class. Unions, and labor victories such as the minimum wage, played an enormous role in this healthy change.

In this strike the companies are asking the workers to accept large concessions in health coverage, pensions and pay. The workers are willing to agree to a small part of it. The companies are blaming the need for this on the threat of Wal-Mart selling cheaper groceries. There is some truth in this. Wal-Mart is such a huge employer that it largely sets standards, and it has managed to fight off unions. It also just had one of its executive offices searched in connection with the arrest of 300 illegal immigrants who were cleaning their stores. What really needs to happen is for Wal-Mart employees to unionize. But in Southern California Wal-Mart has 1 percent of the market compared to 60 percent for these grocery chains combined, and the chains' overall profit and productivity-per-worker have gone up significantly in the last few years.

Though I had been shopping at one of these local stores, I'm shifting all I can to other stores, and I've written the big chain to tell them why. If they settle the strike in favor of the workers I'll re-evaluate. If we actually have picket lines here, I won't cross them.

For more information go to www.ufcw.org, the site of the United Food and Commercial Workers. The big chains have put out nothing informative in press releases or on their Web pages that I could find, other than quotes that reducing labor costs is how they intend to boost their bottom line. I take this to mean they're not disputing the union's facts.

Tom Cantlon's column appears every other Monday. www.tomcantlon.com.

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