Like Sheep to the Slaughter With a Double Coupon

Notwithstanding the economy, the grocery workers union in Southern California are threatening to strike.  Which I think will prove disasterous for the workers, and the California economy as a whole.  But I doubt the union leaders care.

The strike effects three southland grocery chains:  Ralphs, Vons, and Albertsons.  The issue is health benefits:  healthcare costs have risen and so the groceries are expecting the workers to contribute more:

From the Orange County Register:

Under the modified proposal from the chains, there will be no changes in prescription drug co-pays, no changes in the PPO plan's total annual deductible amounts, no changes in the PPO plan's total annual out-of-pocket maximums. Other benefits that were in the supermarkets' initial proposal that remained in the latest offer included: continuing to offer an HMO option to eligible employees, continuing to pay 100 percent of the cost of most preventative care procedures, no change to the cost for maintenance drug medications co-pays, no change to the total Health Reimbursement Account amounts available, continuing to offer health benefits to those employees who work as few as 16 hours a week. The grocery chains also continue to ask for employee contributions of $9 a week for single coverage and $23 a week for full family coverage. Currently, the grocery employees hired after March 2004 pay $7 a week for single healthcare coverage and $15 a week for full family coverage. About half of the grocery chains' employees, those who were hired before March 2004, pay no weekly contributions for healthcare, according to the grocery chains.

"...The companies' proposals would place most of the burdens of higher medical costs onto them (workers) in the form of reduced benefits and higher premiums, deductibles and co-pays," according to a statement issued by the union. "... contrary to company claims, the proposals would devastate workers' healthcare benefits within 18 to 20 months."

(An aside:  Blogger has the worst thing with blockquotes, sorry)

I assume that last comment, in quotes, is from the union.

Now Ralphs and Albertsons are saying that if a strike happens, they will close most of the stores effected.  Citing that it is not profitable to keep them open during a strike, I think the unions need to look long and hard at this statemet, where a spokeswoman for Ralphs said, "Any decision to reopen closed stores will be based on the business conditions at that end of a strike."

Meaning . . . you can't go home again.  I expect Ralphs to pull out of California, based on that statement.  It just has become too expensive to operate a grocery store and meet union demands. 

But more can be found in the readers' comments to the store from which that quote was taken.  As expected, most readers are unsympathetic to the unions: it is, after all, practically impossible to find jobs where none to minimal amounts of contribution by workers towards health care is part of the package, for even full-time employees, much less part-time employees.  But I wish to hare one reader's analysis that supports the notion that while we see Ralphs leave, its parent company, Kroger, will remain in California:

Both the Unions and Ralphs are playing a game with the futures of the employees and their families.

The Unions do not want to lose what they have fought so hard to achieve, and yet in the reality of these difficult times, some compromise will be necessary for their survival.

Ralphs on the other hand will use the threat of closures each and every time there is a labor dispute.
If the Unions call Ralphs on the threat, what the massive grocery retailer will do is to shut down for six months and sell their stores, to another company owned by the parent company Kroger, most likely a Spanish named company, like El Mercardo, or La Tienda Grande.

It would be a good marketing move for Kroger as the Hispanic stores have been aggressively moving into those areas which used to be a great market for the Ralphs chain, areas which are now predominantly Hispanic.

These stores would of course be populated by Non-Union Hispanic workers, working for about 60% of the wages and benefits currently being paid. (many would be Illegals, because our Obama Justice Department will not go after large employers of illegal aliens)

This strike, if it happens would actually be a boon for Ralphs, don’t forget they also have a (tax free) strike contingency fund which will cover most of any losses they suffer, for about a year.

The other Chains do not have the Kroger system behind them, and cannot afford to dilute their market share, by closing stores.

These large chains have been closing stores in market areas where the population is majority Hispanic, and the stores have been purchased by large retailers from Mexico and South America.

It is time we as Californians face reality, our state is changing, a large percentage of our legislators are Hispanic and will vote to support the influx of illegal immigrants, whom they count on to vote to reelect them.

Look at all of the legislation aimed at the Hispanic population over the past five years. Hispanics are 40% of the states population, including the illegals. By 2025 it will be 60% with the remaining “White Anglo” population being reduced to around 25-27%.

Because of the influx of Hispanic illegal aliens and the flight of White Anglos to neighboring states, the average NON-Government income will drop to a rate nearing that of the early sixties.

The reduction in average income throughout the state will reduce the revenue from taxes the state receives, much as the drop in property values have knocked the property taxes down by 30%.

The state will face even larger and growing deficits, and higher tax rates to make up for the decline in State Income Taxes.

By 2050, there won’t be much difference between Mexico’s economy and that of California.

Education will decline further to that of one of the more affluent states of Mexico, but will trail other U.S. states. We already trail most of the industrialized nations in education.

Compromise is what is needed, though it is a matter of time, when the reality of world economics overtakes the California Unions.

California’s Legislature is attempting suicide by Marxist/Socialism, so far they are doing a great job.
Record numbers of businesses have fled the high taxes and regulations as of June first, 4700 plus businesses have fled the state since the first of the year. We are on track to lose almost 10,000 businesses this year.

I did not say jobs, it is businesses, which employe several hundred thousand people.

The growth in State Jobs, with their lavish medical plans and pensions has grown over the past fifteen years on a par with the Federal explosion, which Obama has created.

Keep in mind when you vote in 2012, that right now nearly 40% of all jobs are Union Government jobs (excluding the military), once the number of Government Union jobs exceeds the 50% mark, the Unions will effectively control our government.

The Unions will control every aspect of your life, your income, your education, your medicine and what little savings you have not taken by taxes.

Obama and the Democrat Marxist/Socialists and the old guard Republicans want the U.S. to be a reflection of the NEW Europe,

Bankrupt, financially and morally.

This is not a racist rant, it is just the way thing are.

Indeed,  Mr. Edwards, that is just the way things are, but I expect the unions to move into the Hispanic grocers as well, regardless of the legal status of the workers.  Because if the unions can swing the US government to provide amnesty to members, it will do so to ensure its voting block.  Not to get higher wages or more benefits for the workers, mind you - that is NOT the unions' goal.

I note also the complaints of some readers that the salaries of the grocery store CEOs should be slashed (why?) and the workers paid a "decent wage."  What is a decent wage?  When I buy my groceries at Walmart, the person scans the items - with the exception of produce - and the machine does all of the calculations for him or her, including how much change I am to receive.  Behind the workers is a revolvinf device holding grocery bags, and as they are filled, the worker twirls it and I place them in my cart.  Help getting groceries to the car is optional and reserved for the exception - the elderly, the infirm. 

So what is a "decent" wage for that type of work?  I disagree with the concept of a "living wage" - paying more than the value of something - and labor does have a value - is a recipe for economic disaster.  It's part of what has gotten us into this mess.  And the idea of "slashing" a CEO's salary to give to a bagger is not only lacking foundation, it's theft.

Your thoughts?  If I lived in Southern California still, I might not cross a picket line, not because of sympathy to the union, but because I would rather give my economic support to non-union shops, which do exist.  Do you value yourself and the money you've earned?  Then don't give it to support these unions.

Have at it.