By George Anderson
Two presidents of United Food & Commercial Workers' locals have thrown cold water on the prospects of a negotiated deal with Supervalu over its acquisition of Dominick's Finer Foods from Safeway.
United Food & Commercial Workers Local 881 President Ronald Powell and Local 1546 President Kenneth Boyd told the Chicago Sun-Times, "We remain confident that discussions with other potential bidders will result in a favorable agreement whereby Safeway will ultimately sell Dominick's."
The union's leadership reportedly favors Yucaipa over Supervalu or Roundy's in the bidding to take over Dominick's.
Moderator's Comment: Does the eventual winner of the Dominick's sweepstakes need union backing to acquire and turn the business around?
Neil Stern, analyst, McMillan Doolittle, said union approval is crucial for the new owner if it intends to turn Dominick's around. He said, "The first thing a buyer has to do is make peace with the unions and obtain an agreement it can live with," Stern said. [George Anderson - Moderator]