The unions representing more than 20,000 Safeway employees throughout Northern California reached a tentative agreement with the company, averting a strike.

The United Food and Commercial Workers Union (UFCW) Local 8, Local 5 and Local 648 on Thursday issued a deadline of midnight on Friday, July 25, for a new contract or they would go on a strike. They extended it on Friday amid talks with the company and announced on Saturday a new deadline of Sunday at 12:01 a.m. 

Just after 3 a.m. Sunday, UFCW Local 5 and Local 648 announced the 16,000 Bay area workers would not go on strike as a tentative agreement had been reached. UFCW 8-Golden State said they had also reached a tentative agreement.

"Because our members stood together—strong and unshakable—they secured a contract that reflects their value and delivers real improvements for their families and futures," John Frahm, president of Local 5, said in a press release. 

According to the unions, the workers were seeking higher wages, along with improved benefits and scheduling.

Frahm shared what he described as key highlights of the agreement. 

• Meaningful wage increases to reflect workers' essential contributions
• A strengthened pension plan that improves workers' retirement savings
• Fair scheduling improvements to enhance quality of life
• Increase to health care contributions to keep benefits affordable and accessible
• Enhanced job protection language to create safer, more respectful workplaces

Working toward an agreement

Both sides, along with a federal mediator, met for bargaining last week, but no deal was reached. The unions then accused  Albertsons, which owns Safeway, of stalling negotiations.

"The company has rejected several proposals—offering neither a rationale nor a counteroffer and has yet to offer a comprehensive wage proposal," UFCW 8 said in a statement. "We have been bargaining for months, our members have voted nearly unanimously to authorize a strike, and we're done waiting."

"This is about fairness and respect for the essential workers who keep our communities fed and our stores running," UFCW Local 5 John Frahm said in a statement. "We hope management comes to the table ready to meet the needs of their frontline workers."

A spokesperson for Safeway said in a statement to CBS News Bay Area, which read in part, "We have scheduled bargaining sessions this week and continue to work with a federal mediator. While we are disappointed that the Unions have indicated the possibility of a strike at some of our stores, we fully respect our associates' right to engage in collective bargaining."

"We are hopeful a resolution will be reached soon, as we have in other parts of the country through successful collaboration with our union partners to secure agreements that recognize and reward our dedicated associates while supporting the company's ongoing growth," the spokesperson added.

The three unions represent approximately 25,000 Safeway workers.