According to Raley’s spokesperson John Segale, the Union offered a contract which Raley’s management rejected. The company says that the proposed contract would increase operating costs an additional $20 million in just the first year. The proposal reportedly increased wages, included signing bonuses and higher costs for health and welfare of employees.
Mr Segale said that union leadership was “so out of touch with the realities of today’s economy. Management wants to lower expenses.
UFCW’s Local 8 President requested an audit of Raley’s “to justify the company’s claims of need for financial relief.” The Union also proposed “a budget for labor costs based on the audit’s findings.”