Ritter vetoes benefits for locked-out workers

DENVER • Gov. Bill Ritter vetoed a bill that would have given unemployment benefits to workers locked out during labor disputes, citing ongoing talks between union representatives and grocery store chains.

Ritter said Tuesday that signing House Bill 1170 would make it more difficult for the parties to reach an agreement. The veto came as contract talks resumed Tuesday between United Food and Commercial Workers union Local 7 and Albertsons Inc.

A labor contract between the union and grocery store chains - King Soopers, City Market, Safeway and Albertsons - a expired May 10. Safeway workers voted to authorize a strike but agreed to extend their contract on a day-to-day basis until May 30 while negotiations continue. Negotiations continue today with Safeway and Thursday with King Soopers.

Workers locked out in a contract dispute aren't automatically eligible for unemployment benefits because of a law passed in response to a clash between the United Food and Commercial Workers and grocery stores in 1996.

"I believe it is ill-advised and counterproductive to enact legislation that materially impacts the relative bargaining position of parties in the midst of ongoing negotiations," Ritter wrote in his veto message.

Ritter, a member of the pipefitters union while in college, has vetoed other union-friendly legislation, including a 2007 bill that would have made it easier for unions to organize.

United Food and Commercial Workers spokeswoman Laura Chapin issued a statement saying Ritter "sided with corporate interests over working families and an economic recovery." The union lobbied for the lockout bill.

King Soopers spokeswoman Diane Mulligan said the Denver-based unit of grocery giant Kroger Co. is "very pleased with the governor's decision. We never felt this was an unemployment issue and we are planning to go back to the negotiating table and reach an agreement before the deadline.

Safeway spokeswoman Kris Staaf said the California-based chain believes the veto "underscores that the current law strikes the appropriate balance to protect both employees and business and will remain in effect while negotiations continue with Local 7."

Colorado paid more than $5 million in unemployment benefits to Safeway workers who were locked out in response to King Soopers workers going on strike in 1996.

The Colorado Supreme Court upheld the move. But in 1999, at the urging of retailers, state lawmakers agreed to change the law, making it difficult for locked out workers to collect unemployment benefits.

Ritter said the 1999 law denying benefits to locked-out workers upset the balance governing unemployment benefits for locked-out or striking workers. He said the issue warrants further debate and perhaps further legislation.

"But the debate should be had and legislation crafted outside of the shadow of a major contract negotiation that has the imminent threat of a strike or lockout," he said in his statement.

Colorado's current law makes a distinction between offensive and defensive lockouts.

Union officials argue it's easy for stores to claim a defensive lockout, which are called to protect property from vandalism or if a strike has been called against another company it is coordinating with during negotiations. Unemployment benefits are not paid out when defensive lockouts occur.

An offensive lockout happens when a company locks out its workers for some other reason, such as a tactic to encourage workers to accept a contract offer. Workers would get unemployment benefits in an offensive lockout.

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Gazette Staff Writer Wayne Heilman contributed to this report.