In a landslide endorsement Sunday, 87 percent of Southern California grocery workers who cast ballots voted yes on a union contract proposed a week ago.

The four-year contract was a vast improvement from what was offered during the 2003-04 labor dispute, Charlie Rubin, store director at Albertsons in Simi Valley, said Monday.

"Everyone described this as a David and Goliath story, and yesterday, David won," said Chris Zazueta, a Ralphs cashier in Sherman Oaks who has worked for the company for 19 years. "We speak for all grocery workers when we say how excited we are."

The United Food and Commercial Workers announced the results from Sunday's voting Monday.

The victory will change the lives of 65,000 Southern California grocery workers and turn their jobs into solid, middle-class employment again, Zazueta said. From 3,000 to 4,000 union workers will be affected in Ventura County.

"We gained back 90 percent of what we lost," over the last contract, said George L. Hartwell, president of the UFCW Local 1036 in Camarillo.

The agreement was reached July 17 after seven months of negotiations, as grocery workers took steps toward a possible strike.

Under the terms, workers at Supervalu Inc.'s Albertsons, Kroger Co.'s Ralphs and Safeway Inc.'s Vons and Pavilions will be able to reach the same top wage, regardless of when they started. This was a major point of contention. The union successfully fought to eliminate a two-tier pay system, where new workers earned less than veterans doing the same job, that was created under the last contract.

However, it will take 10,400 hours for a new worker to reach the top scale, or journeyman status, up from 7,600 hours previously. This is one area where management prevailed, Hartwell said. A notable difference is that second-tier workers previously capped out at $15.10 an hour.

Pay increases are retroactive to March 5, and employees will receive annual raises through the term of the contract, which expires March 6, 2011. For example, grocery clerks and meat cutters — the bulk of the workers — will see their pay rise $1.65 an hour over the next four years, with annual hourly increments ranging from 35 to 50 cents.

The previous top wage for first-tier employees was $17.90 an hour. Under the ratified contract, all workers will receive a raise of 50 cents an hour immediately, boosting the top pay to $18.40 an hour.

Healthcare waiting period shorter

The waiting period for healthcare eligibility has been shortened to six months for new hires and dependent children, and 24 months for spouses. It previously took more than a year for workers to get eligibility, and 30 months for children and spouses.

All employees who have worked six months will be eligible for healthcare coverage, according to the union.

In addition, second-tier workers — those who became employees since the last contract was reached in 2004 — will be able to graduate to the first-tier healthcare plan over time, said union spokeswoman Sandra Lloyd-Jones. The contract contains some unique and groundbreaking reforms in the healthcare plan, said Steve Burd, Safeway chairman, president and chief executive officer.

"We know from experience these changes will create an improved health plan for our employees that focuses on improving their health through prevention and wellness while simultaneously helping control escalating healthcare costs," Burd said.

Preventive healthcare will be covered for all employees and will include routine physical exams, mammograms, prostate cancer screenings, baby care and childhood immunizations.

"If you can prevent chronic diseases and illness happening, you can more effectively utilize scarce healthcare resources and produce healthy workers," said Kevin Herglotz, a Safeway spokesman, who declared the finalized contract a win-win for everyone involved.

There are enhancements for every associate across the board, including raises, said Albertsons spokeswoman Stephanie Martin.

Those employees worried about their pensions were relieved to learn that funding will allow current retirement levels to continue.

The union will supplement healthcare coverage, supplying $3,000 for each employee, or $240 million of the $500 million in its healthcare trust fund. A six-month reserve from the healthcare trust fund will be preserved at the end of the contract's term.

Losses from 2003-04 lockout

The contract ratification was good news for customers, management and workers Monday. Before Sunday's vote, customers were really hoping the contract would be ratified, said Rubin of Albertsons in Simi Valley.

The 2003-04 strike-lockout cost Vons, Ralphs and Albertsons an estimated $2 billion in sales, and even years later, other grocers "now have a piece of our market share," Rubin said.

"The customers didn't want to go through that again, and speaking from the management side, I really didn't want to go through that again," he said. "It took three years to get our customer loyalty back."

The ratified contract was a huge victory for Southern California, and all grocery workers who are fighting for fair wages, Lloyd-Jones said.

Ronnie Merricks, meat manager at Vons in Oxnard, was relieved after seeing the contract Sunday. He was satisfied with the $1.65 hourly wage increase, so that by 2010, it would be possible for some workers to make close to $20 an hour.

He's hoping that the improvements will retain more employees, and that more workers will look at working for the supermarkets as a career, not just a job.

Merricks was a little disappointed that it would still take most workers about six to nine years to reach the top pay scale. However, for some trade positions, such as a meat cutter, it will only take two years to receive top pay.

Mostly, he's just glad it's over.

The contract takes care of their employees, while allowing the three major grocers to remain cost-competitive in Southern California, said Martin, spokeswoman for Albertsons.

"It allows all of our associates to get back to their jobs and take their lives off hold," Martin said. "It allows them to move forward."

— The Associated Press contributed to this report.