Central Grocers Gets Go-Ahead to Explore Sale

On Tuesday, April 25, Teamsters Local 703 and Central Grocers reached an understanding to resolve the union’s action for a temporary restraining order. Local 703 originally filed the action in federal court on April 18 based on information that Central Grocers would sell its facility in Joliet, Illinois.

The Teamsters represent approximately 300 members at Central Grocers, the supplier to hundreds of retail grocery stores in Illinois and majority owner of Strack & Van Til stores in Indiana.

Local 703 had sought an injunction of any sale, including a temporary restraining order, pending arbitration of the union’s claim that the sale would violate its labor contracts. Local 703 now has agreed to withdraw the action, without prejudice to re-filing, in exchange for certain assurances from Central Grocers regarding a potential transaction and receipt of certain confidential information that will allow the Teamsters to better assess the transaction and its potential impact on the labor contracts and members.
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The arrangement will allow the seller and buyer to proceed with exploration of the potential transaction without the disruption of litigation, while giving Local 703 new and concrete information necessary to better protect its interests and the interests of its members.

“Withdrawing our original action at this time is in the best interest of the union and our membership,” said Thomas W. Stiede, Secretary-Treasurer of Local 703. “Preserving our strong labor agreements in the grocery industry is paramount. The Teamsters will continue to work to gather information in the effort to protect members and prepare for what the future may hold.”