Kroger union agrees to extend contract

"We now have a chance to reach agreement without a work stoppage," said Lisa Holsclaw, president of Kroger's Central Marketing Area.\nMost of the Cincinnati-based grocer's 4,000 employees represented by United Food and Commercial Workers Local 700 had been expected to walk off the job Wednesday after rejecting Kroger's latest contract offer Monday and authorizing a strike.\nWith the current labor contract now set to expire at 12:01 a.m. Nov. 12, both sides have another week to resolve differences that mostly involve rising healthcare costs. That contract had been set to expire just after midnight Tuesday.\n"A little breathing room can be good in these situations," Local 700 organizing director Rian Wathen said. "When it comes down to whether we want a strike or a contract, we prefer a contract -- and our members prefer a contract."\nUntil the agreement, Kroger negotiators had snubbed a union invitation to return to the bargaining table. Company spokesman Jeffrey Golc said Kroger was "willing to listen" to last-minute proposals but was prepared to stick by its "last, best and final" offer.\nAfter signing the contract extension, Kroger abandoned plans to operate under reduced hours in case of a strike. It will continue normal hours at its central Indiana stores.\nOn Monday night, members of the Local 700 rejected by a more than 3-to-1 margin a contract offer Kroger had called "final." The vote also authorized a strike.\nThe union had said it was prepared to go on strike as early as Wednesday, unless the company returned to the bargaining table.\nAt issue is a four-year contract offer that would require higher healthcare contributions from employees.\nUnion members want a contract that fully covers increased healthcare costs, continues to grant full pensions to retirees at age 60 and provides bigger raises for new hires.\nA similar dispute over insurance costs led to a strike by more than 3,000 Kroger workers in Ohio, Kentucky and West Virginia that began Oct. 13 and continues. Kroger closed 44 stores in the region, and said they would remain closed until a resolution is found. Both sides have said they anticipate a long strike in those states.\nKroger's contract offer had included more than $30 million in wage increases and pension contributions, as well as an offer to pay increased healthcare costs, the company said.\nThe dispute involves 3,598 clerks and 386 meat cutters at Kroger stores in Brownsburg, Columbus, Crawfordsville, Franklin, Greenwood, Indianapolis, Kokomo, Lebanon, Martinsville, Plainfield, Rushville and Shelbyville.