Safeway strike averted after union and company reach tentative agreement

SAN JOSE, Calif. -- UFCW Local 5 and UFCW Local 648 have reached a tentative agreement with Albertson's Companies which owns Safeway, averting a planned strike that would have been the first regional labor stoppage against the company in nearly three decades, the union announced.

The deal follows five months of negotiations and growing strike momentum from the thousands of Safeway employees represented by the unions in the Bay Area.

RELATED: 25,000 Safeway employees could go on strike Sunday if deal isn't reached, union says

The tentative agreement includes meaningful wage increases, improvements to retirement benefits, fairer scheduling, increased health care contributions, and stronger job protection language.

"This is a hard-earned and inspiring victory," said UFCW Local 5 President John Frahm and UFCW Local 648 President Dan Larson in a joint statement. "Because our members stood together--strong and unshakable--they secured a contract that reflects their value and delivers real improvements for their families and futures."

Safeway released a statement to ABC7 on Sunday, writing:

"We are pleased to have reached a fair and equitable tentative agreement with the UFCW locals in Northern California. We appreciate the union's partnership in reaching a contract that will benefit our associates and allow us to continue to serve our customers."

Ratification votes will be scheduled in the coming days. But it did not share when that vote is expected to happen. Union leaders expressed confidence that members will approve the deal.

Albertsons and Vons workers in Kern, Inyo, and Mono Counties operate under a separate contract, but union leaders say they also agreed on a tentative deal.

KGO-TV staff contributed to this report