Local 8 of the Food and Commercial Workers union plans to hold a strike authorization vote June 3rd and 4th.
Officials at Local 8 said they decided to seek the vote after Raley's declared an impasse Friday following months of talks over a new contract.
The impasse declaration allows Raley's to implement a final offer, without a vote on it by the Union membership, after the existing contract expires June 6, forcing the union to accept the deal or strike.
Raley's is seeking drastic cuts in health care benefits, elimination of all premium pay and wants to eliminate health care for retirees, according to union officials.
Union officials said the impasse declaration caught them by surprise and indicates Raley's desire to force the benefit and wage cuts on their members.
"Once again, they are taking an erratic and reckless position and, unfortunately, this leaves us with no choice but to move forward with a strike vote," Jacques Loveall, Local 8 president, said in a statement to union members.
Raley's spokesman John Segale said the two sides were in a stalemate after union officials refused to recognize the company's financial challenges and proposed changes that would increase operating costs.
Raley's says it needs to cut costs in the face of a weak economy and competition from non-unionized companies that sell groceries, such as Wal-Mart Stores Inc. Raley's has recently closed some underperforming stores and laid off workers.
"Rather than work towards an agreement that is fair to employees and Raley's, union leaders came back with a new proposal for wage increases and bonuses that they know we simply cannot afford at this time," Segale said.
Average compensation, including health and pension benefits, for Raley's workers is $27.50 per hour, Segale said. The hourly wage rate is between $12.95 and $21.13, with Courtesy Clerks (bagers) being paid less.
West Sacramento-based Raley's is a privately owned company that operates 131 stores in Northern California and northern Nevada under the names Raley's, Bel Air Markets, Nob Hill Foods, Food Source and Aisle 1.
The company had $3.4 Billion in sales in 2011.
The current contract negotiations affect workers at Raley's, Bel Air Markets and Nob Hill Foods.
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