In mid July, Albertson's announced the closure of their San Leandro Distribution Center . The 440,000 square-foot San Leandro facility currently services 172 stores in Northern California . There are two other distribution centers in Northern California , one in Vacaville and the other in Roseville . Plans are for work currently performed in San Leandro to be relocated primarily to Roseville .

This announcement came as a complete surprise, particularly as San Leandro is the most centralized location of the three facilities. Business Agent, Dominic Chiovare was baffled by the decision; “With the cost to expand Roseville , plus increased transportation expense to service stores, it is difficult to understand. The company states, however, among other reasons, that closing the San Leandro facility will lower cost and improve their competitive edge in the marketplace.”

The closing will be in two phases, beginning in January 2006 with the transfer of Frozen foods and Produce, and the final phase scheduled for May 2006 with the moving of Deli and Meat.

Over 200 Local 70 members will be affected by this closure, with two options available: (1) follow the work to Roseville or Vacaville and dove-tail with full seniority; or (2) severance pay for those who do not wish to transfer. Under the terms of the collective bargaining agreement, employees are entitled to forty hours of straight time pay for each year of service, three months health and welfare plus 40% of the employee's accumulated sick leave. Chiovare advises; “In the coming months Local 70 will enter into bargaining on behalf of these affected employees in an effort to further enhance and protect their interest throughout the process.”