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Kroger CEO wants ‘balance’ in labor talks

6/25/2009

Cincinnati Kroger Co. CEO David B. Dillon said both sides must find a balance as the grocery store chain faces tough union negotiations.

Dillon said after Thursday's shareholders meeting that the recession has added to such problem issues as healthcare costs and pension funding. He expressed optimism, but said both sides need to work out the desire for better pay and benefits with how to pay for them, according to the Associated Press.

Workers in the Denver area last week rejected a new contract offer, and employees in Arizona; Dayton, Ohio; and Portland, Ore., are under contract extensions.

Kroger officials said they need to keep labor costs in line against nonunion competition from retail giant Wal-Mart Stores Inc. and others. Union officials said Kroger is prospering, and that employees should share the rewards.

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