US retailer Safeway has mooted the sale of its 113 Dominick’s stores in Chicago if it fails to resolve a dispute with unionised employees.
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Next Saturday sees a three-year contract between Safeway and the United Food and Commercial Workers union come to an end, and union officials are unhappy with the new deal Safeway is offering. The union is to poll the nearly 9000 members of staff who work for Dominick’s, reported the Associated Press.
Safeway acquired Dominick’s four years ago, and profits have recently slumped. Union officials blame the new management for the decline in performance, and are threatening strike action if workers do not approve of the new terms on offer.
Safeway is in turn making it clear it will not tolerate the union holding a gun to its head. If necessary, it is prepared to sell off the subsidiary if workers take strike action.
“The company would dispose of the assets of the Dominick’s subsidiary,” said Safeway in its 8-K filing. “Dominick’s will not attempt to operate any of its stores should the employees go on strike.”
