What Wal-Mart Has Wrought

The unions in California lost and tax-payers could be paying new employee health bills.

For decades, the industry and its union -- the United Food and Commercial Workers (UFCW) -- signed contracts that gave supermarket workers employer-paid health insurance and decent wages. Five months ago, however, three major chains put forth a new contract that would turn supermarket employment into low-wage work with few benefits.

Sixty thousand workers across Southern California either struck or were locked out. So many shoppers refused to cross the picket lines that the three chains lost more than $1.5 billion in sales. But late last week, the union threw in the towel. The contract that the unhappy but increasingly desperate workers ratified created a lower pay scale for all new hires. It virtually ended the markets' responsibility for new workers' health coverage: Employers agreed to contribute $4.60 hourly for current workers' health plans but just $1.35 hourly for those of future employees. In the words of one union (but not UFCW) leader, the contract is "the beginning of the road to the Wal-Martization of the industry."

For months the union treated the strike not as a national battle but as a regional one. The union did not organize community and consumer support groups that could have rallied against the chains; it was very slow to leverage union pension funds to go after the corporations' finances. In short, the union really had no plan to win the strike if the companies held out -- and since their outlets outside Southern California were unaffected, the companies could hold out better than workers subsisting on meager strike benefits.

In fact, this was anything but a regional strike. The union's contracts will expire in other parts of the country later this year, but now its strike fund is depleted and the companies can point to the new contract as setting the pattern for the industry. Close to 1 million unionized supermarket jobs may now be downward-bound. And while Americans have focused, understandably, on the ongoing evisceration of manufacturing jobs, the downscaling of service-sector jobs in the age of Wal-Mart poses no less a threat to the existence and idea of a working-class career.