Original story

Bay Area residents may have to change their grocery shopping plans this weekend as Safeway workers in Northern California threaten to go on strike Saturday if a labor contract is not secured.

More than 20,000 workers represented by the United Food and Commercial Workers could walk out if a strike is called, which the union said would happen if they don’t reach an agreement with Safeway by Friday night. The labor group is seeking higher wages and increased benefits for grocery store employees, among other concerns.

“We have been in round-the-clock negotiations since yesterday morning and continuing through the day. There’s been some progress, but not enough as it stands,” Jim Araby, a spokesperson for UFCW Local 5 in Hayward, said Friday.

While UFCW and Safeway leaders are still at the bargaining table alongside a federal mediator, Araby is skeptical they will be able to reach an agreement and have workers vote on it before the union’s deadline.

More than 200 Safeway stores could be blocked by picket lines if a strike occurs, Araby said, adding that 95% of union members voted to approve the strike earlier this month.

Workers have been unable to keep up with exorbitant cost-of-living increases in the Bay Area, and health care costs have also gone up for the union’s members, he said.

A spokesperson for Safeway said in a statement that the company is committed to engaging in good-faith negotiations with UFCW Local 5 and other labor groups in Northern California, while also balancing the needs of customers and the corporation’s growth in a “highly competitive grocery industry.”

“While we are disappointed that the unions have indicated the possibility of a strike at some of our stores, we fully respect our blockociates’ right to engage in collective bargaining,” the statement reads. “We are hopeful a resolution will be reached soon.”

Safeway and its parent company, Albertsons, can afford to give workers better wages and benefits, Araby said, noting that the parent company reported a net income of nearly $1 billion last year and paid stockholders a $4 billion dividend in 2023.