Dive Brief:
- In an effort to transition to a new supply chain, Schnuck Markets said it has reached an agreement with union workers at one of its warehouses, and made a deal with a new warehouse operator in another, according to Supermarket News.
- Combined, the two warehouses serve 100 Schnucks stores in six states.
- Penske Logistics will now serve as the new operator of Schnucks’ 915,000-square-foot fresh food warehouse in Kinloch, MO. The opening of the Kinloch facility upset union jobs at an older Schnucks’ facility in Bridgeton, Mo. who were impacted. They briefly boycotted Schnucks stores, but it was lifted last week after its members ratified a new five-year contract.
Dive Insight:
Labor disputes are never a good thing. Even if an agreement comes to pass, both sides often have resentment for one another that lasts a while and can be detrimental for business.
Schnucks reached agreements with its warehouse managers and staff, ratifying a new five-year contract with its workers in Bridgeton. It also called for retirement buyouts for approximately 50 workers and increases in company-paid healthcare benefit contributions, retiree healthcare contributions and pension contributions.
Warehouse jobs are an important part of the entire grocery supply chain as they get the products to stores in a timely and safe fashion. Still, recent circumstances have forced grocery chains to overhaul their supply chain to better meet changing consumer interests and improve efficiency at the retailer, a move that has threatened some jobs and prompted concern from company workers.
The rise of part-time workers and those who can set there own hours means some companies can hire warehouse workers on an as-needed basis and keep costs down by not having to offer benefits or full-time hours. That’s a reason why unions are important for the workers.
Robots and new technology also are starting to find their way into warehouses and are taking over some of the jobs. This is a trend that many analysts feel will impact the space a great deal in the next 5-10 years. As grocery chains look to cut costs and become more efficient, it's likely more jobs could be lost. That pace could accelerate even more if grocery store chains merge and the new companies look to make changes to the new business.