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NEW YORK - Safeway Inc. on Tuesday reached a tentative contract agreement with unionized workers at its Dominick's division that includes a commitment by Safeway to try to sell the Chicago unit, Reuters reports.
The new contract, which is subject to a vote by the union's membership, contains all the terms and conditions of the expired contract, as well as a bonus for members once it is ratified.
The contract also includes "a commitment by the company to try to sell Dominick's to a buyer," said Elizabeth Belan, a spokeswoman for the union's Local 881.
Earlier this month, about 9,000 workers at the Chicago division voted to authorize a strike to back their demands for higher wages and healthcare benefits.
The workers, represented by the United Food and Commercial Workers International Union, accused Safeway of blaming them for the company's management mistakes. Profits and sales at the firm's 113-store division have waned for nearly four years.
The UFCW reportedly had been recruiting possible buyers for Dominick's, which is the No. 2 grocer in metropolitan Chicago, behind Albertson's Jewel supermarket chain. Potential buyers that have been named include Kroger, Supervalu, and Schnucks.