Volume 63 December 2010 Issue 4VOICEO F U F C W L O C A L 7 7 0

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Working families and the state ofCalifornia won the Novemberelections, and UFCW membersmade the difference.

This year, we registered morevoters, got more people out tovote, and had more participationin the Active Ballot Club thanever before. This gave us thestrength we needed going intothe elections.

Thanks to the efforts of unionand UFCW members, Californiabucked the national trend andheld the line for working families.

That means our state, andworking families and unionmembers in particular, dodgedthe bullet.

Had Republicans like billionaireMeg Whitman won, we’d befacing a hostile governmentintent on punishing workers andrewarding millionaires.

Instead, we elected a roster oflegislators and Constitutionalofficers that will make workingfamilies like our members apriority.

This is a critical advantage for usin our upcoming negotiations:we benefit greatly from electedofficials that will support us byvigorously enforcing labor law,and making sure managementisn’t breaking the law—again.

You’ll remember that during the2003-4 lockout and strike,management violated federallabor law and Ralphs committed

Social Security Fraud in anattempt to gain an advantageover us. They also entered intoan illegal “mutual assistancepact” that allowed them toextend the lockout and strike.

Thanks to the aggressive effortsof Jerry Brown and others,management was prosecuted andprevented from using theseunderhanded tactics in the future.Now our allies like Jerry Brownare in office, and we can count ontheir help and protection as wego into our 2011 contractnegotiations. Thankfully, weelected an Attorney General,Kamala Harris, who will continueJerry’s work and support forworking families.

That’s why elections are important.And why this election inparticular was such an importantvictory for UFCW members.

Thank you for your efforts withthe Active Ballot Club, theelection, and your efforts gettingready for the upcomingnegotiations.

THE VOICEIssue 4 Dec. 2010

PRESIDENT RICK ICAZA has

been a member of Local 770 since

1956. He has served on the union’s

staff as a Research Assistant,

Organizer, Business

Representative and Secretary-

Treasurer. He was elected

President in 1981.

PRESIDENT’S MESSAGE

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President’s Message . . . . . . . . . . . . . . . . . . 1President Rick Icaza

Secretary-Treasurer’s Message . . . . . . . 3

Thank You, UFCW! . . . . . . . . . . . . . . . . . . . . . 4

It’s Time To Get Ready . . . . . . . . . . . . . . . . 5Kathy Finn

Icaza Foundation . . . . . . . . . . . . . . . . . . . . . 6

UFCW Scholarship Recipients . . . . . . . . 7-8

UFCW Scholarship Applications . . . . . . . . 9

Consumer Outreach . . . . . . . . . . . . . . . . . . 11

Ticket Information . . . . . . . . . . . . . . . . . . . 12

Year-End Financial Reports . . . . . . . . 13-14

Personal Injury information . . . . . . . . . . 17

Mensaje del Presidente . . . . . . . . . . . . . . 18

THE VOICEIssue 4 Dec. 2010

CONTENTS

VOICEO F U F C W L O C A L 7 7 0

(3) THE VOICEIssue 4 Dec. 2010

SECRETARY-TREASURER’S MESSAGE

JOHN GRANT joined UFCW Local

770 in 1980 when his Local 563 of

the Amalgamated Meat Cutters and

Butcher Workman of North America

(AMC&BWNA) merged with Local

770. He started work as a Union

Representative in 1985, was

appointed as In-House Counsel in

1992, became Packinghouse Director

in 2002 and now serves as

Secretary-Treasurer.

Secretary TreasurerJOHN GRANT

March, 2011.

That’s when our food contractexpires. You’ve seen the buttons.Maybe you helped pass out bagsto consumers. It might haveseemed a long way off.

Well, it isn’t anymore.

Our food contract expiration isright around the corner, and thisis likely going to be anotherdrawn-out fight. We (Members)need to prepare mentally,emotionally, and financially for along negotiation.

More than a few negotiationsaround the country have settledor are in process, and virtuallynone were completed beforecontract expiration. Most arewith the same big corporateemployers we have in SouthernCalifornia.

In Arizona, where UFCW 770sent members and organizers tohelp our brothers and sisters inLocal 99, the negotiations wenton for nearly a year after theircontract expired.

Seattle’s Local 21 just ratified afair contract, but it took them sixmonths after the expiration oftheir contract and a near-unanimous strike vote.

In fact, there hasn’t been a singlefair contract settled recently thatwasn’t preceded by a strikeauthorization vote by unionmembers. Management has provenagain and again that we won’t geta fair deal unless membership iswilling to walk out.

That’s unfortunate, but that’s theway it is. Management istelegraphing their strategy, andwe need to be prepared for it.How?

The best way is by talking to yourfellow members and employeesabout the need for solidarity inthe upcoming negotiations. Weneed to stick together if we wantto get a fair contract. We need toraise our voice—collectively andindividually.

Recent AFL-CIO polls andresearch show the most effectiveway to rally members is byhearing from other members.Union members step into actionwhen they are personally askedby another union member to doso. When you talk to another

employee in your store, it is amuch more effective means ofcommunication than a phone callor flyer in the mail. And, frankly,it’s the best way for us to win.

March, 2011. Its right around thecorner. Get ready. The true indexof our strength is the intensity ofour voice. SPEAK OUT FORRESPECT.

(4)THE VOICEIssue 4 Dec. 2010

“THANK YOU, UFCW LOCAL 770!”

All our Local 770-endorsed statewide candidateswere elected in November, and all have sent ourmembers and union a sincere thank you for our

crucial support:

Jerry BrownGovernor

Gavin NewsomLt. Governor

Kamala HarrisAttorney General

John ChiangController

Dave JonesInsurance Commissioner

Debra BowenSecretary of State

(5) THE VOICEIssue 4 Dec. 2010

Director of Research,Bargaining and EducationKATHY FINN

The Food And Meat Agreementcovering over 20,000 memberswho work for Vons, Ralphs andAlbertsons is scheduled to expireon March 6, 2011 -- that's justthree months away. In order forus to achieve the best contractpossible, we must all be preparedfor lengthy negotiations and adifficult fight.

The Teamsters in SouthernCalifornia and other UFCWmembers around the U.S. havereached settlements with thesesame employers over the pastseveral months after prolongednegotiations and difficult contractcampaigns. We know that ournegotiations will be difficult aswell as we will need significantincreases in employercontributions in both our pensionplan and our health plan and wemust continue to close the wagegap between the newer and moresenior members.

Now is a good time to make sureyou are prepared financially for acontract fight. You should notmake any large purchases for thenext several months and try topay off any outstanding debtsthat you have. You should alsomake sure you understand theissues that will be decided inthese negotiations. You can dothis by attending a union meetingor speaking to your unionrepresentative or store steward.

Finally, you should get involvedin some of the contract actionsthat we have planned. You canstart to get ready for negotiationsby wearing your March 2011button and helping hand outreusable grocery bags andcollecting pledge cards ofsupport from customers.

KATHY FINN joined Local 770

in 1997 and serves as Director of

Research, Bargaining and

Education.

FOR THE RECORD

It’s time to get ready:Food Contract expiration is right around the corner!

(6)THE VOICEIssue 4 Dec. 2010

2010 ICAZA FOUNDATION ANNUALCHARITY GOLF TOURNAMENT

140 Members participated in thisyear’s event, helping raise$124,000 for Leukemia research.

Joseph T. DesilvaScholarship

JaguelynManougian$3,000University ofSouthernCalifornia

KathleenLo$2,500University ofSouthernCalifornia

JacintaNguyen$2,500University ofSouthernCalifornia

AliceWu$2,500University ofSouthernCalifornia

MichaelBond$2,000CSUSonoma

SandraDelgado$1,000CA StateUniversity,Pomona

ArtiDesai$2,000University ofCalifornia,Irvine

JordanGodfrey$1,000NorthernArizonaUniversity

KourtneyGonzalez$1,000San Diego StateUniversity

AudrianaGonzalez$1,000San Diego StateUniversity

AndreaHernandez$1,000Pierce College

BabackSalehani$3,000University ofSouthernCalifornia

BrittneyWong$2,500University ofSouthernCalifornia

JasonLebowitz$3,000University ofSouthernCalifornia

(7) THE VOICEIssue 4 Dec. 2010

CONGRATULATIONS UFCW

Local 770/DHA Scholarship

GraceHong$2,000Harvard

MatthewIrons$2,000University ofCalifornia,Berkeley

MarenLopez$1,000University ofCalifornia,Berkeley

StaceyRauen$2,000University ofCalifornia,Berkeley

MichaellneMendoza$1,000California StateUniversity, L.A.

LynishaNash$2,000University ofCA, Riverside

ChristopherOgden$1,000College of theCanyons

ConsueloRamos$2,000CA StateUniversity,Dominguez Hills

PaigeRomero$2,000University of CA,Santa Barbara

JordanRush$2,000Antelope ValleyCollege

NancySaavedra$1,000Mount St. Mary’sCollege

BrianSantisaranyu$1,000CA StateUniversity,Northridge

BrandiStrong$1,000MoorparkCollege

AlexisSquires$2,000Long BeachUniversity

AmandaTimoney$2000University ofCalifornia,Santa Cruz

JessicaTondreau$2,000College of theCanyons

StephanieTorres$1,000University ofCA, San Dieg

DaneilTrujillo$2,000El CaminoJunior College

ClarissaValencia$1,000University ofCalifornia,Los Angele

DanaWilliams$1,000CA StateUniversity,Bakersfield

(8)THE VOICEIssue 4 Dec. 2010THE VOICEIssue 4 Dec. 2010

SCHOLARSHIP WINNERS!

To apply for next year’sscholarships, fill out andsubmit the application onthe following page.

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To apply for the Union’s scholarshipprograms, please use the applicationrequest forms published here.Scholarships are open to activemembers affiliated with Local 770from September 2010 throughSeptember 2011, their spouses,parents and children. You must be anactive member or a dependent of anactive member in good standing,from September 2010 to September2011 to be eligible for a Local 770scholarship.

Requests for applications must bereceived in the Union’s office byMarch 1, 2011. Completedapplications must be received byMarch 31, 2011. No exceptions tothese deadlines will be permitted.All applicants chosen must attend anoral interview that will be conductedon a Saturday in June 2011.Applicants who do not attend theoral interview will be automaticallydisqualified. No exceptions.

The Local 770/Dental HealthAssociatesScholarshipAwards are issued to full-time collegestudents, graduate or undergraduate.Applicants are judged based onessays they submit, past records andachievements, plus an oral interviewwith the Local 770 ScholarshipCommittee. Eligible full-time students(12 units or more/ undergraduate; 6units or more/ graduate), in a degreeprogram at any accredited college oruniversity may apply.

Each year Dental Health Associatesmakes a major contribution to thisscholarship program. DHA, whichprovides dental services at locationsthroughout 770’s jurisdiction, isdirected by Victor S. Sands, DDS, MS.

Local 770 members and their familiesexpress their very special thanks toDr. Sands for his continuing interestand support.

The Joseph T. DeSilva ScholarshipThis program is for studentsattending USC and is funded by agrant from the late founder of theLocal 770 Joseph T. Desilva and frommemorial gifts made in his name.Awards are issued to full-time collegestudents, graduate or undergraduate.Awards are issued based on essays,past records and achievements aswell as an interview with thescholarship committee. Eligiblestudents should be full time (12 unitsor more/ undergraduate; 6 units ormore/graduate) and in a degreeprogram attending USC.

REMINDER: Requests for 2011applications for the Joseph T.DeSilva and Local 770/DHAscholarships must be received at theUnion’s offices by March 1, 2011.Application to the Joseph T. DeSilvaScholarship program is strictly forstudents attending USC. But thoseattending USC may also apply forLocal 770/DHA scholarships.

USC STUDENTS ONLYJoseph T. DeSilva Scholarship –

Application Requestc/o UFCW LOCAL 770, 630 Shatto Place, L.A. CA 90005

Applicant’s Full Name

Applicant’s Social Security Number

Mailing Address

City, State and Zip

Home Phone Cell Phone

Relationship to Member (son, daughter, parent, spouse)

Full Name of Member Member Social Security

Member Store and Store Number

School Attending in Fall

I am a member/ dependent of Local 770 in good standing. In order to beeligible for the scholarship, I will remain in good standing from September2010 through September 2011 and in the Fall will be enrolled as a full-timestudent (12 units or more/undergraduate; 6 units or more/ graduate).

� I am enrolled at USC � I have been accepted by USC� I plan to enroll at USC ________ (month/year)

Signed by Applicant in Acceptance of the Above.

Local 770/DHA ScholarshipApplication Request

c/o UFCW LOCAL 770, 630 Shatto Place, L.A. CA 90005

Applicant’s Full Name

Applicant’s Social Security Number

Mailing Address

City, State and Zip

Home Phone Cell Phone

Relationship to Member (son, daughter, parent, spouse)

Full Name of Member Member Social Security

Member Store and Store Number

School Attending in Fall

I am a member/ dependent of Local 770 in good standing. In order to beeligible for the scholarship, I will remain in good standing from September2010 through September 2011 and in the Fall will be enrolled as a full-timestudent (12 units or more/undergraduate; 6 units or more/ graduate).

Signed by Applicant in Acceptance of the Above.

Local 770 College Scholarships for 2011

RULES AND DETAILS FOR 2011SCHOLARSHIPS

CONTRACT CAMPAIGN CONSUMEROUTREACH BEGINS

UFCW has always counted onthe support of consumers, andahead of our contractnegotiations we are distributingfree reusuable shopping bags toshow our gratitude. At the sametime we’re asking consumers tosign a pledge card supportinggrocery workers in the upcomingnegotiations.

Pitch in and doyour part.

Help tell consumers “thank you”—volunteer to help hand out ourthank you gift. Talk to your unionrepresentative.

THE VOICEIssue 4 Dec. 2010(11)

Member Ticket Specials

Venue Member Price Reg. Price

Ticket Sales Mail Order Sales Credit CardInternet Sales

For information on Movie Ticket Specials Call our Local Office at (213) 487-7070 Ext. 7200

630 Shatto Pl, Los Angeles (213) 487-7070 Ext. 720025949 Belle Porte, Harbor City (310) 784-534043535 17th St W, Ste 303, Lancaster (661) 726-4656Monday thru Friday, 8:30 am - 4:30 pmCash, money orders, Visa or Mastercard

UFCW LOCAL 770P.O. Box 369Harbor City, CA 90710Send money order only

www.ufcw770.orgInternet sales-mail delivery3-7 days, plus postage

(13) THE VOICEIssue 4 Dec. 2010

CONDENSED FINANCIAL STATEMENTS 2009

IndependentAuditors’Report

Ricardo Icaza, PresidentUnited Food and CommercialWorkers Union, Local No. 770630 Shatto PlaceLos Angeles, California 90005

Dear Mr. Icaza:We have audited, in accordancewith auditing standards generallyaccepted in the United States ofAmerica, the statement offinancial position of the UnitedFood and Commercial WorkersUnion, Local No. 770 as ofDecember 31, 2009, and therelated statements of activitiesand cash flows for the year thenended (not presented herein);and in our report dated July 30,2010, we expressed a qualifiedopinion on those financialstatements. Local 770 has electednot to adopt all provisions ofStatement of FinancialAccounting Standards No. 117.See Note 2-P.

In our opinion, except for notreporting expenses by theirfunctional classifications andorganization-wide revenues andexpenses, the information setforth in the accompanyingcondensed financial statements isfairly stated in all materialrespects in relation to thefinancial statements from whichit has been derived.

Miller, Kaplan, Arase & Co.,LLPNovember 30, 2010

(14)THE VOICEIssue 4 Dec. 2010

UNITED FOOD AND COMMERCIAL WORKERS UNION, LOCALNO. 770 • NOTES TO CONDENSED FINANCIAL STATEMENTS

DECEMBER 31, 2008

NOTE 1 - DESCRIPTION OF THE ENTITYUnited Food and Commercial Workers Union, Local No. 770 (the “Union”)is a chartered local of the United Food and Commercial WorkersInternational Union. The Union is an unincorporated, tax-exemptassociation with a membership of approximately 32,500 within SouthernCalifornia. The purpose of the Union is to organize workers, within itsjurisdiction, into a single organization for thepurposes of collectivebargaining of wages, benefits and working conditions and improving theeducation and social awareness of its membership. The Union's primarysources of revenues are dues and initiation fees paid by its members. EffectJuly 1, 2009, United Food and Commercial Workers Union Local No. 1036(“UFCW Local 1036”), including its wholly-owned Local 1036 BuildingCorporation, was merged into the Union. See Note 5.NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESA. Basis of AccountingThe accounts of the Union were maintained on a modified cash basis ofaccounting; however, for financial statements purposes, entries have beenapplied to the cash basis accounts to placethem on the accrual basis. The useof the accrual basis properly recognized revenues when earned or otherwiseavailable and expenses are recognized when incurred.B. FundsThe accounting records of the Union are segregated into the following funds:

General FundGeneral operations of the Union.Preparedness FundThe General Fund allocates $.50 per member per month to this Fund forexpenditures to protect members of this and other local unions. TheExecutive Board determines the level of this Fund.Building FundAccounting segregation of the General Fund, to record the purchase, improvement,operation and maintenance of the real properties owned by the Union. To maintain accounting by the above-established funds, certain interfundtransactions are reported on the by-fund statements of activities, whichmust be eliminated to determine organization-wide revenues and expenses.The General Fund is charged interfund rent by the Building Fund at anestablished per square foot rate for the area occupied by the Union. TheGeneral Fund allocates $.50 per member per month of dues to thePreparedness Fund.

C. EstimatesThe preparation of financial statements in conformity with accountingprinciples generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the reportedamounts of assets and liabilities at the date of the financial statements andthe reported amounts of revenues and expenses during the reporting period.Actual results may differ from those estimates.D. Revenues from MembersDues from members are recognized as income over the period to which theyapply. Initiation fees, reinstatement fees and assessments are recognized asincome when received.E. Rental Income - TenantsThe Union leases a portion of its buildings’ office space located at 630 ShattoPlace, Los Angeles, California to non-affiliated organizations. The Unionalso leases a portion of its building office space located at 816 CamarilloSprints Road, Camarillo, California, to non-affiliated organizations. Futureminimum rental income as of December 31, 2009 is as follows:Year Ending December 31, Shatto Property Camarillo Property Total2010 . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,642 . . . . . . . . . . . . . . . . . $126,497. . . . . . . . . . . . . . . . $ 224,737 2011 . . . . . . . . . . . . . . . . . . . . . . . . . 116,823 . . . . . . . . . . . . . . . . . . 88,742 . . . . . . . . . . . . . . . . . 205,5652011 . . . . . . . . . . . . . . . . . . . . . . . . . 115,355 . . . . . . . . . . . . . . . . . . 71,487 . . . . . . . . . . . . . . . . . 186,8422013 . . . . . . . . . . . . . . . . . . . . . . . . . . 38,192 . . . . . . . . . . . . . . . . . . 54,132 . . . . . . . . . . . . . . . . . . 92,3242014 . . . . . . . . . . . . . . . . . . . . . . . . . . – . . . . . . . . . . . . . . . . . 2,259 . . . . . . . . . . . . . . . . . . . 2,259TOTALS $368,610 $343.117 $711,727

F. Other RevenuesInvestment income, reimbursements and other revenues are reported on theaccrual basis.G. Per Capita TaxesLiabilities reported for amounts due are based on collections from members.H. Other ExpensesAll other expenses are reported on the accrual basis except for a nominalamount of recurring monthly expenses.I. Cash and Cash EquivalentsCash and cash equivalents consists of cash and gift certificates on hand andcash deposited with financial institutions in checking accounts, savings accounts,money market accounts, money market funds and time certificates of deposit.J. InvestmentsEffective January 1, 2008, accounting principles generally accepted in theUnited States of America require additional disclosures about fair valuemeasurement and establish a framework for measuring fair value. Thatframework provides a fair value hierarchy that prioritizes the inputs tovaluation techniques used to measure fair value. The hierarchy gives thehighest priority to unadjusted quoted prices in active markets for identicalassets or liabilities (level 1 measurements) and the lowest priority tounobservable inputs (level 3 measurements). The three levels of the fairvalue hierarchy are described below:Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Union has the ability to access.Level 2: Inputs to the valuation methodology include:1. Quoted prices for similar assets or liabilities in active markets;2.Quoted prices for identical or similar assets or liabilities in inactive markets;3. Inputs other than quoted prices that are observable for the asset or liability;4. Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.The asset’s or liability’s fair value measurement level within the fair valuehierarchy is based on the lowest level of any input that is significant to the fair value measurement.Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value.1. U.S. Government Securities: Short-term investments in United States treasury bills and stripped coupon bond are reported at amortized value. Investments in United States treasury notes are valued based on quoted market prices or using matrices of trades in similar securities.2. Common Stocks: Valued at the closing price reported on the active market on which the individual securities are traded.3. PIMCO Low Duration Fund: Valued at the net asset value of shares held by the Union at year end.4. Real Estate: Valued at the value as appraised by an independent certified appraiser. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Union believes itsvaluation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, theUnion’s assets at fair value as of December 31, 2009:

Level 1 Level 2 Level 3 TotalU.S. Government Securities . $ 0-00 . . $2,382,773 . . . $ 0-00 . . $2,382,773 Common Stocks . . . . . 1,395 . . . 00-0000 . . . 00-00 . . . . 1,395PIMCO Low Duration Fund 1,357,559 . . . 00-0000 . . . - . . 1,357,559Real Estate . . . . . . . - . . . . . - . . 1,050,000 . . . 1,050,000

$1,358,954 . . . . $2,382,773 . . . $1,050,000 . . . $4,791,727

The table below sets forth a summary of changes in the fair value of theUnion’s level 3 assets for the year ended December 31, 2009.Balance, January 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,110.000Purchases of improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,160Depreciation recognized on real estate investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,635)Unrealized loss related to real estate still held at reporting date . . . . . . . . . . . . . . . . . . . . (63,525)Balance, December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,050,000

Investment purchases and sales are recorded on the trade date basis.Dividends and interest income are recorded on the accrual basis. Unrealizedappreciation or depreciation in the market values of investments is reportedas “Unrealized Appreciation (Depreciation) of Investments.”

The following summarizes the carry values and market values of investmentsat December 31, 2009:

General FundFace Value Government Interest Maturity Market CarryValue Debt Securities Rate % Date Value Value$1.358,000 United States Treasury Bills N/A 04/01/10 $ 1 ,357,559 $ 1 ,357,5591,000,000 United States Treasury Notes 1.750 03/31/10 1 ,004,258 1 ,004,25821,000 United States Treasury Stripped N/A 08/15/10 2 0,956 2 0,956

TOTALS - GOVERNMENT DEBT SECURITIES $ 2 ,382,773 $ 2 ,382,773

General Fund (Continued)No. of Shares Common Stocks Market Value Carry Value

2 American Stores, Inc. $ 2 5 $ 6 65 Arden Group, Inc. 478 1 084 Bank of America Corp. 6 0 2 61 CVS Caremark Corp. 3 2 3 41 Kroger Co. 2 0 2 01 Interstate Dept Stores – 2 61 JC Penney Company, Inc. 2 7 5 21 Jewel Companies, Inc. 1 3 2 73 K-Mart Corp. 2 50 8 31 Manville Corp. – 2 83 Pacific Lighting Co. 5 1 53 Pepsico 1 82 6 01 Rite Aid Corp. 2 43 Safeway, Inc. 6 4 6 13 Skaggs Companies, Inc. 3 8 7 42 Standard Oil Co. 1 54 6 31 Supervalu, Inc. 1 3 3 51 Tenneco, Inc. 1 8 2 61 Western Alliance Bancorp. 4 2 61 Winn-Dixie Stores, Inc. 1 0 2 6

TOTALS - COMMON STOCKS $ 1 ,395 $ 8 60

Mutual Funds131,930 PIMCO Low Duration Fund $ 1 ,357,559 $ 1 ,350,296

TOTALS - GENERAL FUND $ 3 ,741,727 $ 3 ,733,929

BUILDING FUNDReal Estate Holdings 1,050,000 751,159

TOTAL - INVESTMENTS $ 4,791,727 $ 4,485,088K. Property and EquipmentProperty and equipment are stated at cost. Depreciation is determined forrelated groups of assets under the straight-line method, based upon theirestimated useful lives. Minor renewals or replacements, and maintenanceand repairs are expensed. Major replacements and improvements arecapitalized. Depreciation is computed over the estimated useful lives ofassets as follows:Land Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 40 yearsBuilding and Improvements . . . . . . . . . . . . . . . . . . . . . . . 5 - 40 yearsFurniture and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 3-10 yearsComputer Hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 yearsComputer Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 yearsAutomobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7 yearsL. Tax-Exempt StatusNo provision for Federal or state income tax is made. The Union hasreceived tax-exempt status from the Federal government under a 501(c)(5)group exemption letter with the International Union and from the State ofCalifornia under Revenue and Taxation Code Section 23701a.M. Health and Welfare BenefitsThe Union contributes to the United Food & Commercial Workers Unionsand Food Employers Benefit Fund and to the United Food and CommercialWorkers International Union (on behalf of the United Food andCommercial Workers Health Insurance Plan for Retirees) in which itsemployees participate.N. PensionsThe Union contributes to the Southern California United Food andCommercial Workers Unions and Food Employers Joint Pension Trust Fundfor certain employees. The Fund may have a liability for unfunded vestedbenefits at December 31, 2009 requiring assessment of withdrawal liabilityfrom contributing employers withdrawing from the Fund; however, themanagement of the Union has expressed no intent to withdraw from theFund and the withdrawal liability to the Union, if any, has not beencomputed. Certain employees of the Union may elect to contribute todefined contribution plans with 401(k) features sponsored by the UnitedFood and Commercial Workers International Union. The Union matches100% of the employee’s contributions to these plans up to 4% ofcompensation. In addition, certain employees of the Union participate in amultiple employer defined benefit pension plan sponsored by the UnitedFood and Commercial Workers International Union. The Union makes noemployer contributions to this plan, but participating employees contribute4% of their salaries to the Plan. Benefits provided by this Plan are based onthe participant’s age, length of service and compensation.O. Transactions with Related PartiesThe Union is reimbursed for certain expenses incurred in providing servicesto its members on behalf of related employee benefit plans. Reimbursementsfrom related employee benefit plans are based on mutually agreeablereimbursement formulas. The Union received the following reimbursementsfrom related employee benefit plans for the year ended December 31, 2009:Southern California Drug Benefit Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 218,179United Food & Commercial Workers Unionsand Food Employers Benefit Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 966,245Southern California United Food & Commercial WorkersUnions and Food Employers Joint Pension Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112,135TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,296,559

The Union received the following reimbursements from United Food andCommercial Workers International Union for the year ended Dec. 31, 2009:General Fund:Salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$79,992Organizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24,000Meetings, Conferences and Conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13,663TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$117,655

The Union received the following reimbursements from United Food andCommercial Workers Region 8 States Council for the year ended Dec. 31, 2009:General Fund – Organizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$79,992

The Union has established the Local 770 United Food and CommercialWorkers Political Action Committee (PAC) to support or oppose candidatesfor state and local office and to further the goals of organizing andbargaining within the State of California. The General Fund contributes$0.25 per member per month to the PAC. The total contributions made tothe PAC for the year ended December 31, 2009 was $85,556.

P. Omission of Certain Financial InformationManagement of the Union has elected to omit the reporting of expenses bytheir functional classifications and organization-wide revenues and expensesin its financial statements. Accounting principles generally accepted in theUnited States of America require that financial statements for not-for-profitorganizations report information about expenses by their functionalclassifications and organization-wide revenues and expenses. The presentationof the Union’s financial statements without this information does not changethe amounts of assets, liabilities, net assets and the change in net assets andcash flows reported on the Union’s financial statements. In the opinion ofmanagement, its decision not to include this information does not affect theusefulness of the financial statements.Q. Subsequent EventsManagement has evaluated subsequent events through July 30, 2010, thedate on which the financial statements were available to be issued. Therewere no material subsequent events that required recognition or additionaldisclosures in these financial statements.

NOTE 3 - GENERAL INFORMATIONA. Accrued Vacation and Retirement BonusEmployees of the Union are entitled to compensated vacation absences of 2through 5 weeks per year depending on their length of service. Uponretirement, certain employees are eligible for a retirement bonus based uponcompensation and length of service. The amounts of accrued liabilities werecomputed based upon provisions of the plans. The current portion (amountspayable within one year) is an estimate of anticipated utilization.

December 31, 2009Total Liability Estimated Current Liability

Accrued Vacation . . . . . . . . . . $1,424,299 . . . . . . . . . . . . . . . $450,700Retirement Bonus . . . . . . . . . . . 328,520 . . . . . . . . . . . . . . . . 24,403 TOTALS . . . . . . . . . . . . . . $1,752,819 . . . . . . . . . . . . . . . $475,103

B. Obligations Under Operating LeasesThe Union has entered into lease agreements for the leasing of officeequipment as follows:

Commencement Date Term Monthly PaymentPostage Equipment (Shatto) . . . . . . September 2005 . . . 54 months . . . . . . $ 1,090Postage Equipment (Harbor) . . . . . . January 2006 . . . . . 69 Months . . . . . . . $494 Postage Equipment (Camarillo) . . . . . September 2004 . . . . 72 Months . . . . . . . $411 Postage Equipment (Camarillo) . . . . . March 2009 . . . . . 55 Months . . . . . . . $800 Postage Equipment (Arroyo Grande) . . . January 2008 . . . . . 51 Months . . . . . . . $268 Copier (Shatto) . . . . . . . . . . August 2007 . . . . . 36 Months . . . . . . . $2,035 Color Copier (Shatto) . . . . . . . . August 2007 . . . . . 36 Months . . . . . . . $549 Copier (Shatto) . . . . . . . . . . December 2009 . . . . 36 Months . . . . . . . $538 Copier (Food Trust) . . . . . . . . . November 2007 . . . . 36 Months . . . . . . . $482 Copier (Camarillo) . . . . . . . . . June 2009 . . . . . . 60 Months . . . . . . . $517 Copier (Camarillo) . . . . . . . . . June 2009 . . . . . . 60 Months . . . . . . . $257 Copier (Camarillo) . . . . . . . . . June 2009 . . . . . . 60 Months . . . . . . . $550 Copier (Arroyo Grande) . . . . . . . December 2008 . . . . 60 Months . . . . . . . $277 Copier (Arroyo Grande) . . . . . . . December 2008 . . . . 60 Months . . . . . . . $146

The Union also entered into a three year lease agreement effective July 1,2009, for office space in Bakersfield, California to conduct its operations.The following schedule represents the minimum future rental payments dueon non-cancelable operating leases with terms in excess of one year:Year Ending December 31, Office Space Office Equipment Total

2010 . . . . . . . . . . . .$ 13,400 . . . . . . . . .$ 79,102 . . . . . . . . .$ 92,502 2011 . . . . . . . . . . . . . .13,920 . . . . . . . . . .44,682 . . . . . . . . . .58,602 2012 . . . . . . . . . . . . . . .7,080 . . . . . . . . . .37,292 . . . . . . . . . .44,372 2013 . . . . . . . . . . . . . . . - . . . . . . . .27,752 . . . . . . . . . . 27,752 2014 . . . . . . . . . . . . . . . - . . . . . . . . .7,378 . . . . . . . . . . .7,378 TOTALS . . . . . . .$ 34,400 . . . . . . . 196,206 . . . . . . $ 230,606

Total expense for all operating leases for the year ended December 31, 2009was $103,125C. Line of CreditThe Union entered into a promissory note agreement with Wells Fargo Bankon January 16, 2008 to obtain (for working capital purposes) up to $3,000,000from a revolving line of credit. Under the terms of the note agreement, anyoutstanding principal amount together with accrued interest is payable onDecember 10, 2012. The promissory note agreement has a variableinterest rate and is subject to change based on changes in the prime rate setfrom time to time by Wells Fargo Bank. The note is collateralized by the realproperty located at 630 Shatto Place, Los Angeles, California. There was nooutstanding principal and interest due on the promissory note agreement atDecember 31, 2009.D. Note Payable Assumed from Local 1036 Building CorporationUpon its merger with UFCW Local 1036, the Union assumed a note payablein the amount of $1,214,488, payable by the Local 1036 BuildingCorporation. The note was a 15-year loan with a fixed interest rate of 7.40%and a maturity date of December 13, 2019. Monthly principal andinterest payments of $13,821 were paid on the note until December 14, 2009,at which time the note was paid off by paying the unpaid principal balance,accrued interest and prepayment penalty totaling $1,190,809.

NOTE 4 - CONCENTRATION OF CREDIT RISKThe Union maintains cash accounts at various financial institutions in excessof the Federal Deposit Insurance Corporation limit of $250,000. Theuninsured balances at December 31, 2009 were as follows:

Bank Balance Insured UnisuredBank of America . . . . .$1,308.002 . . . . . . . .$250,000 . . . . . . .$1,058,002Wells Fargo . . . . . . . . . . . .682,607 . . . . . . . . .250,000 . . . . . . . . .432,607TOTALS . . . . . . . . . . . .$ 34,4000 . . . . . . . . .$500,000 . . . . . . .$1,490,609

NOTE 5 - MERGEROn April 20, 2009, the membership of the Union voted and approved bymajority to enter into a merger with UFCW Local 1036 with the Union beingthe surviving organization. The effective date of the merger was July 1, 2009.The following assets, liabilities and net assets of UFCW Local 1036,including the assets, liabilities and net assets of its wholly owned Local 1036Building Corporation, segregated by fund, were transferred to the Union:

AnnSSASSETS Total General Fund Preparedness Fund Building FundCash $9,398,912 $9,086,642 $36,838 $275,432 Investments 1,446 1,446 – –Receivables 262,093 250,822 – 11,271 Interfund Accounts – (238,475) 223,995 14,480 Other Assets 5,693 5,693 – –Property and Equipment:Land 1,443,195 – – 1,443,195 Land Improvements 966,165 – – 966,165 Building and Improvements 3,575,312 – – 3,575,312 Furniture and Equipment 247,016 155,351 – 91,665 Computer Hardware 56,160 56,160 – –Automobiles 58,869 58,869 – –(Less): AccumulatedDepreciation & Amortization (2,162,692) (176,252) – (1,986,440)

TOTAL ASSETS $ 13,852,169 $9,200,256 $ 260,833 $ 4,391,080

LIABILITIES & NET ASSETSLIABILLIABILITIESAccounts & Expenses Payable $248,562 $240,499 – $8,063 Payroll Deductions Payable 10,831 10,831 – –Exchanges Payable 37,801 37,801 – –Accrued Vacation and Sick Time Payable 111,367 111,367 – –Rental Security Depositsand Deferred Rental Income 34,079 – – 34,079 Note Payable 1,214,488 – – 1,214,488

TOTAL LIABILITIES $1,657,128 $400,498 $ - $ 1,256,630

NET ASSETS-UNRESTRICTED $12,195,041 $ 8,799,758 $ 260,833 $ 3,134,450

TOTAL LIABILITIES & NET ASSETS-UNRESTRICTED $ 13,852,169 $ 9,200,256 $ 260,833 $4,391,080

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(17) THE VOICEIssue 4 Dec. 2010

UFCW 770 VOICE

ISSN 1074-8490 • Volume 62, Issue 4Published Quarterly in March, June, September and December by UFCW Local 770Chartered by United Food and Commercial Workers International Union , CLC.

Street Address: 630 Shatto Place, L.A. CA 90005Mailing Address: Box 770, Hollywood CA 90078

Periodical Postage Paid at Los Angeles CAPOSTMASTER: Send address changes to VOICE, UFCW 770

Post Office Box 770, Hollywood CA 90078Executive Editor: Rick Icaza

UFCW 770 VOICE

ISSN 1074-8490 • Volume 62, Issue 4Published Quarterly in March, June, September and December by UFCW Local 770Chartered by United Food and Commercial Workers International Union , CLC.

Street Address: 630 Shatto Place, L.A. CA 90005Mailing Address: Box 770, Hollywood CA 90078

Periodical Postage Paid at Los Angeles CAPOSTMASTER: Send address changes to VOICE, UFCW 770

Post Office Box 770, Hollywood CA 90078Executive Editor: Rick Icaza

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• Use the appropriate protectivegear when participating insports activities.

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“Because we have handled justabout every type of PersonalInjury case, we understand thelegal, medical, social andpsychological ramifications,” sayspartner Howard Krepack. “Thereis a ripple effect to catastrophicinjuries; family members are alsoimpacted greatly. That’s whymaking their lives better is ourfirst priority.”

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THE VOICEIssue 4 Dec. 2010 (18)THE VOICEIssue 4 Dec. 2010

VOZD E L U F C W L O C A L 7 7 0

MENSAJE DEL PRESIDENTE

RICARDO F. ICAZA, Presidente

En Noviembre el Estado deCalifornia y las familiastrabajadoras ganaron laselecciones, los miembros de laUFCW hicieron la diferencia.

Este año, registramos a másvotantes, ayudamos a más personasque salgan a votar y hubo másparticipacion que nunca en elActive Ballot Club. Entrando a laselecciones, esto fue lo que nos diola fuerza que necesitábamos.

Gracias a esfuerzos de miembrosde diferentes uniones y losmiembros de la UFCW, Californiano siguio a los demas estados dela nacion y mantuvo la linea porlas familias trabajadoras.

Esto significa que nuestro estado ylas familias trabajadoras yparticularmente nuestrosmiembros esquivaron la bala.

Si los Republicanos como laBillonaria Meg Whitman hubiesenganado estuviéramos viéndonoscon un gobierno hostil con elintento de castigar a trabajadoresy recompensar a millonarios.

Hemos elegido a muchos legisla-dores y oficiales constitucionalesque harán prioridad las vidas defamilias trabajadoras.

Esto será una ventaja para nosotrosen las siguientes negociaciones:

nos beneficiamos mucho porquenos apoyaran rigorosamente enhacer cumplir leyes laborales yasegurando que las compañías noquiebren las leyes nuevamente.

Usted recordara que durante lahuelga y cierre de tiendas del2003-4 las companias violaronleyes laborales federales, Ralphscometio fraude de seguros socialescon la intención de ganar ventajasobre nosotros.

Gracias a los esfuerzos agresivosde Jerry Brown y ortos, la admini-stración fue procesados legalmentey fueron prevenidos en utilizaresta clase de tácticas en el futuro.

Ahora con nuestros aliados comoel Gobernador electo Jerry Brownpodemos contar con su ayuda yprotección cuando entremos ennegociaciones del contrato 2011.Gracias a que elegimos a laCónsul General del EstadoKamala Harris, ella continuaracon el trabajo y apoyo de Jerry.

Por eso las elecciones son muyimportantes y por eso estaelección particularmente fue unavictoria muy importanteespecialmente para los miembrosde la UFCW.

Gracias por sus esfuerzos con elActive Ballot Club, las elecciones,y sus esfuerzos en preparaciónpara las siguientes negociaciones.

Arroyo Grande127 Bridge Street

Arroyo Grande, CA. 93420(805) 481-5661

BakersfieldFor Kaiser Members only

5000 California Ave., Suite 211Bakersfield, CA. 93309

(661) 323-2866

Camarillo816 Camarillo Springs Road,

Suite HCamarillo, CA. 93012

(805) 383-3300

Harbor City25949 Belle Porte AvenueHarbor City, CA. 90710

(310) 784-5340

Newhall23030 Lyons Ave., #205Newhall, CA 91321(661) 726-4656

Huntington ParkFor Packinghouse Members only 1:30 to 5 p.m. • Monday - Friday

2701 Gage Ave., Suite 202Huntington Park, CA 90255

(323) 581-2071

Periodicals

UFCW Local 770PO Box 770 Hollywood, CA 90078

OFFICE LOCATIONS

Los AngelesMain Office

630 Shatto Place – 2nd FloorLos Angeles, CA. 90005

(213) 487-7070 or (800) UFCW770

www.ufcw770.org

General MembershipMeetingTuesday, March 8, 20117 p.m. - 4th FloorLos Angeles Office

Office ClosedMartin Luther King, Jr. Day, Monday, January 17, 2011Presidents’ Day, February 21, 2011

ImportantDates!

Stay in touch!Text FOOD to 68398 to get foodnegotiation updates.