H-NORTHERN CALIFORNIA

Nov 9, 2012 1:31 PM by Associated Press

Union deal with Safeway puts pressure on rival grocer

WEST SACRAMENTO, Calif. (AP) - The union on strike over contract talks with a major Northern California supermarket chain has agreed to new terms with a rival grocer.

Pleasanton-based Safeway announced on Thursday that it had reached a tentative contract agreement with the United Food and Commercial Workers - the same union on strike against West Sacramento-based Raley's. The deal still requires approval by the union's local units.

Raley's and Safeway compete for business in the Sacramento region.

Labor experts tell the Sacramento Bee (http://sacb.ee/Uq86S7) the Safeway deal will put pressure on Raley's to also reach a deal with the United Food and Commercial Workers. The union went on strike against Raley's on Sunday after last-ditch contract talks failed.

But in a statement, Raley's disputed that the Safeway deal will have any impact on its labor dispute.

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