Safeway’s Troubles Could Mount

Southern California isn’t the only place where Safeway has to worry about labor strife.

TheStreet.com reports that Safeway stores in San Francisco, Sacramento, Denver and Seattle will all see their contracts expire later this year. Contracts in the Washington, D.C. area expire next month. It’s possible that Safeway’s labor problems could “spread,” meaning that unions will be emboldened by any gains made by California employees.

Safeway estimates that the strike cost it 23 cents a share in the fourth quarter of 2003, according to TheStreet.com. Albertson’s and Kroger are also taking a major hit. Meanwhile, specialty stores such as Trader Joe’s and Whole Foods are benefiting from labor problems at the three largest grocery chains.