Going on Strike in a Recession

by Greg Plotkin · 2009-11-12 06:00:00 UTC
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After nearly a year of negotiations with the United Food and Commercial Workers Local 99 in Arizona, two of the state's largest grocery store chains -- Fry's Food Stores and Safeway -- are bracing for a strike amid an ongoing labor dispute.

Key factors in the dispute include discrepancies over pay increases and a proposal from the companies that would have workers pay a health care premium (up until now, the companies have covered the entire cost).

With no resolution in sight, and a work stoppage looming as early as Friday, the companies have started to place advertisements for temporary employees to take over for unionized workers when/if they go on strike.

In addition, Fry and Safeway have now entered into a collaborative agreement to take "defensive measures" if the union workers strike against one company and not the other.  Although neither store has said it would lock out unionized workers at the company that is not affected, that is exactly what happened in a similar situation in California during 2003-04.

I really question the wisdom of a labor union organizing a strike when unemployment just hit the 10% mark this month, and with the winter holidays right around the corner.  And it's not just me.  Economists are predicting that current economic conditions could work against and actually prolong a strike.

With unemployment so high, is there any doubt that people will be lining up to take the $9/hour temporary jobs being offered by the two companies?

Local 99 is claiming that this is the perfect time to take a stand against these two companies because the holiday season is their most busy and profitable.  However, it seems questionable that the union's leadership is really concerned about the workers they represent -- particularly since they will only receive $100 per week if the strike goes into effect.

That's not much to live on period, and certainly not enough to purchase holiday gifts.  Here's hoping both sides get this figured out soon for the sake of the workers and their families.

(Photo credit: theslowlane on Flickr)

Greg Plotkin currently works for Flying Pigs Farm in Shushan, NY. He is dedicated to eliminating inequalities in who has access to healthy food and alleviating hunger.
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