Save Mart officials said Thursday they have made progress in contract talks with labor unions, and have extended the existing contract to May 19. The contract, covering employees of Save Mart, Lucky and S-Mart Foods stores in Northern California, had been set to expire at midnight Wednesday.
Grocery officials say the company faces increasing competition from nonunion stores, has taken a hit in the recession, and is dealing with high health and welfare costs.
Save Mart spokeswoman Alicia Rockwell said Thursday that talks with the United Food and Commercial Workers are aimed at keeping the company competitive and maintaining job stability.
"We felt there was enough progress made to warrant an extension till May 19," she said.