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Three years ago, Southern California supermarket owners claimed they desperately needed to reduce wages just to stay competitive. Today, it's clear that they were wildly overstating their fears, as this past year has brought record profits to Ralphs, Albertsons, and Vons/Safeway – profits that should be shared with the grocery workers who had a major role in the success these corporations have had.
| 2006 Corporate Profits | |
| Kroger (Ralphs) | $3.4 Billion |
| Safeway (Vons) | $2.6 Billion |
| Supervalu (Albertson's) | $2.3 Billion |
At the same time the corporations have been setting records for profitability, management is also raking in record salaries. The table below shows the incredible increase in compensation the Chief Executives of these three corporations have seen since the last agreement was signed in 2003. Clearly, these corporations are doing extremely well to offer such incredible compensation to their CEOs, and it's only fair that the grocery workers who have contributed to this success also be compensated with reasonable wage increases and health benefits in return. Basic respect requires nothing less.
| Total CEO Compensation | ||||||
| Corporation | CEO | 2003 | 2004 | 2005 | 2006 | % Increase '03-->'06 |
| Kroger (Ralphs) |
David Dillon | $3.7 Million | $4.0 Million | $5.1 Million | $8.3 Million | 124.3% |
| Safeway (Vons) |
Steven Burd | $1.0 Million | $2.3 Million | $9.2 Million | $7.0 Million | 600.0% |
| Supervalu (Albertson's) |
Jeffrey Noddle | $3.9 Million | $5.7 Million | $9.5 Million | $11.9 Million | 210.5% |
As the new 2006 numbers show, it's clear that the great times continue for corporate management -- but not for the grocery workers who are contributing to that success.
Some recent headlines:
- Supervalu sees double-digit EPS growth next year
- Safeway 4Q profit climbs 77 percent to cap best year since 2001
- Kroger's fourth-quarter profit jumps 36%
Clearly, these chains can afford to offer their workers a fair contract that shows them the respect that they deserve.
