Union: Over 700 Jobs Saved As Safeway Takes Over Warehouse

More than 700 local warehouse workers who faced layoffs this year are breathing easier because of an agreement reached last month by their union, elected officials and representatives from the Safeway grocery chain.

Under the agreement, local and state officials have pledged nearly $1.5 million in financial incentives to keep the grocery warehouse in Prince George’s County, according to the Teamsters Union, which represents the workers.

C&S Wholesale Grocers had announced plans in October to close the distribution center at 16020 Leeland Road in Upper Marlboro, as well as another center in Landover. The Upper Marlboro warehouse is managed by Collington Services and supplies food to Safeway stores.

But the Teamsters Union announced Jan. 21 that Safeway has agreed to take over the operation of the Collington Distribution Center. The Upper Marlboro warehouse’s employees, who currently work for C&S, will become Safeway employees, the union said. The workers are represented by Teamsters Locals 730 and 639.

C&S had notified Maryland officials that it planned to cut 191 jobs at the Collington Distribution Center beginning on Dec. 5. The company planned to move the warehouse operations to Pennsylvania, “which would have displaced more than 700 workers, most of whom live in Prince George’s County,” the Teamsters said in a statement.

The company sent notices to the local employeees stating that layoffs would begin in December. But State Sen. C. Anthony Muse and former Maryland Del. Aisha Braveboy urged C&S to recall the notices, according to the union.

‌In addition, Teamsters General President Jim Hoffa contacted Robert Miller, the CEO of Albertsons Companies, Safeway’s parent firm, and implored him to cancel the warehouse closing, according to the union.

C&S agreed to delay the layoff notices to mid-February. This gave the union and state officials time to work out the latest deal, which will provide nearly $1.5 million in financial incentives to Safeway to keep the warehouse open through the term of a new six-year collective bargaining agreement (CBA), the Teamsters said.

The deal will add 25 jobs at the Collington Distribution Center and pave the way for a possible expansion as Albertsons “continues to grow its footprint on the East Coast,” the Teamsters said.

Workers with Locals 730 and 639 voted to approve the CBA with Safeway, which guarantees no outsourcing of warehouse jobs. The CBA runs through May of 2022.