The strike at Raley's and Nob Hill supermarkets was called off after workers and the company reached a tentative agreement on a new contract. The parties did not provide any details of the settlement.
Raley's and the United Food and Commercial Workers union announced the deal on Tuesday. Union officials said that picket lines would immediately be withdrawn from all Raley's and Nob Hill stores.
"This is very exciting because this contract provides us with the cost savings we need to fund our vision and the initiatives to make us more competitive in the 21st Century,“ said Mike Teel, president of Raley’s.
However, the union says it was able to retain one of its most important benefits, a union-run health plan.
An estimated 7,000 grocery workers had been walking the picket lines for more than a week after 15 months of contract negotiations ended in acrimony.
The grocery chain and UFCW returned to the bargaining table over the weekend in San Francisco following the Nov. 4 strike.
The two sides had been at odds over wages and benefits, including Raley's proposal to eliminate health care benefits for retirees eligible for Medicare.
Raley's and Nob Hill Foods have more than two dozen stores located in the Bay Area and more in Monterey and Santa Cruz counties.
The strike was the first one in the history of the 77-year old company. The company blamed the conflict on an increase in non-union retailers coupled with the recession and skyrocketing health care costs.
“It is important to remember that everyone including our employees, our customers, our company and the communities we serve have suffered in this labor dispute. So, it gives me great pleasure to know that as of today our employees will be back to work serving our customers with the same attention and care as we have always served our customers at Raley’s and Nob Hill," Teel said in a statement.