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Safeway Labor Costs Eclipsed by Bad Management

by Michael Hiltzik for the LA Times Tuesday, Oct. 28, 2003 at 12:23 AM

(Found this on the union website.) Safeway Chairman Burd's royal screwup of the Dominick's chain acquisition cost the stockholders a billion dollars. Now he tries to balance his losses by cutting wages.

download PDF (75.7 kibibytes)

"...while Safeway pleads that the poor economy and changes in the supermarket business are the culprits for the profit crunch, Burd is starting to look like the guy who's been throug a few ugly divorces: the point comes when you have to wonder whether maybe he's the problem...."

"One possible trouble spot is Burd's scorched-earth approach to labor relations, which often boils down to his threatening store closures if he doesn't win. On occasion, this negotiating ploy has worked, although its obvious limitation is that Safeway might eventually run out of stores to close."

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LATEST COMMENTS ABOUT THIS ARTICLE
Listed below are the 10 latest comments of 7 posted about this article.
These comments are anonymously submitted by the website visitors.
TITLE AUTHOR DATE
Safeway already left town once before Meyer London Tuesday, Oct. 28, 2003 at 10:55 PM
Safeway already left town once before Meyer London Tuesday, Oct. 28, 2003 at 10:57 PM
Safeway's Return bread Tuesday, Oct. 28, 2003 at 11:00 PM
return of the Safeway bandits Meyer London Tuesday, Oct. 28, 2003 at 11:46 PM
Socialism Is The Answer lovelyworld Tuesday, Oct. 28, 2003 at 11:53 PM
what increasing cost of maintenance? more rational Wednesday, Oct. 29, 2003 at 11:00 PM
The maintenance cost of a unit is pretty low. landlord Thursday, Oct. 30, 2003 at 2:04 PM
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