Stater Bros. Markets, a Southern California grocery chain, has laid off dozens of clerks for the first time in its 89-year history. The decision, affecting 63 clerks across four stores, was driven by inflation and tariffs, according to Chief Executive Pete Van Helden. He noted that inflation has risen more than 4.5% recently, partly due to tariffs introduced by President Trump on Canada and Mexico, which were later rolled back. Retail prices at Stater Bros. have increased by about 30% over the past four years, prompting customers to turn to lower-cost, non-union competitors like Walmart and Aldi.
The layoffs have sparked criticism from the United Food and Commercial Workers Union (UFCW), which represents the clerks. UFCW 324 President Andrea Zinder stated, “Laying off the lowest paid workers in the stores won’t save Stater Bros. any money, but it’s accomplished one thing — showing workers that their company no longer thinks of them like family.” The layoffs have also led to protests, with around 150 workers and union leaders picketing at a Costa Mesa store.
Van Helden indicated that future layoffs might be necessary to keep prices competitive. He emphasized that the main challenge for Stater Bros. is competition from non-union stores. The company aims to reduce operational costs rather than raising prices further. Bargaining for a new labor contract with Stater Bros. is set to begin soon, and union leaders argue that the layoffs are intended to intimidate workers during negotiations.
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