Giant Food, the region's largest grocery chain, has reached an agreement with the Teamsters union that will save hundreds of jobs at its dry-goods distribution business when it outsources the work to a Jessup firm later this year.
The head of Teamsters Local 730, the union that represents workers at the distribution plant, said Tuesday that 341 full-time workers will keep their jobs at the Giant dry-goods business that's being contracted out to Jessup Logistics LLC, an affiliate of C&S; Wholesale Grocers. Some part-time workers will become full-time under the deal, said Ritchie Brooks, president of Teamsters Local 730.
Landover-based Giant announced in April that it planned to outsource the business to Jessup Logistics, which had agreed to adopt the contracts of three local unions representing workers at the plant. Giant said at the time that Jessup would hire many of the workers, but it wasn't ruling out layoffs.
Giant said in a statement that it is still negotiating with two other unions. The grocer would not comment about the Teamsters agreement beyond the statement issued late Tuesday.
"We have reached agreement with Teamsters Local 730 concerning the effects of the transfer and hope to reach agreement with the remaining local unions impacted by this tentative transaction in the coming weeks," Kim Brown, vice president of public affairs and community relations, said in the statement.
Giant officials declined to say whether any of the 130 nonunion workers at the facility would be laid off.
Brooks had worried that jobs would be lost and work moved to Pennsylvania, where Jessup Logistics has many automated factories. Brooks said Gov. Martin O'Malley and Ron DeJuliis, state commissioner of labor and industry, called Giant on the union's behalf.
"We stood our ground for almost three months and let them know we wanted guaranteed jobs and we would pass out information leaflets in the stores if we didn't get them," Brooks said.
Giant officials have said they decided to outsource as a cost-cutting measure and to put the operations with a company with more expertise. They also wanted to focus more on the distribution of fresh produce, where they saw potential to expand.
Giant will continue to run its own transportation and recycling division.
Grocers have been looking for ways to cut costs and operate more efficiently as the industry has become more competitive. Jessup Logistics also handles Giant's frozen-food division.