Northern California Safeway workers' strike looms closer as negotiations don't yield deal

SAN FRANCISCO (KGO) -- Thousands of Safeway grocery workers across Northern California could walk off the job as early as 12:01 a.m. Saturday if union leaders and company executives fail to reach a deal on wages and benefits by Friday night.

"We are in round-the-clock negotiations throughout today," said Jim Araby of UFCW Local 5. "If we don't reach a deal by midnight Friday, July 25, our workers will be on strike at 12:01 a.m. Saturday morning."

UFCW Local 5 is one of three unions representing approximately 25,000 Safeway employees in the region.

The potential strike would impact more than 100 Safeway locations from Bakersfield to the Oregon border.

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Union leaders say workers are demanding wage increases that reflect the high cost of living in Northern California, along with improvements to health care and pension plans.

"We are seeking improvements in the pension plan for the first time in over a decade," Araby said. "We know Safeway can afford it. In 2023, Safeway paid a dividend to their shareholders of $4 billion. This year, they reported $80 billion in revenue and nearly $1 billion in net profit."

Safeway, which is owned by Albertsons, issued a statement to ABC7 is saying in part, "We are hopeful a resolution will be reached soon, as we have in other parts of the country through successful collaboration with our union partners to secure agreements that recognize and reward our dedicated associates while supporting the company's ongoing growth."

At a Safeway in San Francisco's Sunset District, some employees expressed frustration over the company's recent move to offer temporary workers $27.73 an hour-significantly more than what many current employees earn.

"It makes us feel like they don't care about the people already working here," said one employee, who currently earns $19 an hour.

Another worker, a college student, said he couldn't afford to join the strike. "No, because I'm a broke college student," he said.

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Community members are watching closely. "Safeway is one of our main grocery stores for shopping, so it would have an impact," said San Francisco resident Bill Joe. "I support the workers here."

Not all Safeway's will be on strike at once. The union said that will be determined Friday if a deal is not reached. If a strike goes forward, the union is projecting over 100 Safeways could be impacted.

Here is the full statement issued by Safeway/Albertsons:

We remain committed to productive, good-faith negotiations with the UFCW locals in Northern California. We have scheduled bargaining sessions this week and continue to work with a federal mediator. While we are disappointed that the Unions have indicated the possibility of a strike at some of our stores, we fully respect our associates' right to engage in collective bargaining.

We are working diligently to balance the needs of our associates and customers, maintain our position as a trusted choice in the market by delivering consistent value, and ensure the long-term sustainability of our business in a highly competitive grocery industry. We are hopeful a resolution will be reached soon, as we have in other parts of the country through successful collaboration with our union partners to secure agreements that recognize and reward our dedicated associates while supporting the company's ongoing growth.

Throughout this process, our focus remains on providing exceptional service to our customers and fostering a positive, supportive work environment for our associates across the communities we serve.