1986-175-Supporting KKR & Company's Buyout Of Safeway StoresRESOLUTION NO. 1986 -175
SUPPORTING KKR & COMPANY'S BUYOUT
OF SAFEWAY STORES
WHEREAS the pending $4.1 billion leveraged buy -out deal involving
Kohlberg Kravis Roberts & Company's (KKR) agreement to take over Safeway
Stores, Incorporated will lead to the breakup of the corporate entity
presently known as Safeway; and
WHEREAS this restructuring could mean the sale or closing of stores in
the Los Gatos area, causing severe job loss for Safeway employees,
inconvenience to consumers and disruption to our community; and
WHEREAS the concerns of Safeway employees and their communities have
not been addressed by Safeway or KKR; and
WHEREAS the takeover deal will reap about $150 million for the
investment bankers, lawyers and advisors involved but will give nothing
for our community, consumers or Safeway workers, all of whom are the key
to the company's viability and profitability; and
WHEREAS workers and consumers will ultimately be forced to pay for the
deal through higher supermarket prices, reduced selection and job loss;
and
WHEREAS loss of jobs for Safeway employees will disrupt our local
economy,
NOW, THEREFORE BE IT RESOLVED, the Town Council of the Town of Los
Gatos, calls upon KKR and Safeway Stores, Incorporated to treat Safeway
employees and our community fairly by taking every action possible to
preserve the jobs, benefits and standard of living of the many Safeway
employees in the Los Gatos area;
BE IT FURTHER RESOLVED that KKR and Safeway immediately meet all legal
and moral obligations to bargain in good faith with the employees'
representatives, including the United Food and Commercial Workers Union
(UFCW), to minimize the adverse impact the buy -out could have on Safeway
workers; and that
All that terms and conditions of the buy -out that affect Safeway
workers be addressed through existing collective bargaining agreements
between Safeway and the UFCW; and
BE IT FINALLY RESOLVED that:
In the event Safeway stores are sold to new owners, the Town Council
of Los Gatos urges Safeway to demand that the new owners give preference
to former employees for employment and otherwise continue the positive
relationship Safeway has had with our community over recent years.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos held on 17th day of November, 1986 by the following
vote:
AYES: COUNCIL MEMBERS THOMAS J. FERRITO AND VICE -MAYOR BRENI N. VENTURA
NOES: COUNCIL MEMBERS JOANNE BENJAMIN
ABSTAIN: COUNCIL MEMBERS NONE
ABSENT: COUNCIL MEMBERS TERRENCE J. DAILY, ERIC D. CARLSON
SIGNED:_
VICE-MAYOR AE T ff f O
- S GA OS
ATTEST:
CEP,K� OF THE TOWN OF LOS GATOS