The supermarket chain and trade unions are in talks to try and avert a three-day strike. However, the revelations over the worsening pension deficit could fray relations further.
'There is denial in the face of absolute truth,' said a GMB representative. 'The pending strike starts on Friday unless meaningful progress is made today.'
According to trade union sources, the Safeway pension deficit has ballooned to£304 million. Unions maintain it is an issue that will definitely be up for discussion in talks today, despite a Morrisons spokeswoman claiming: 'It's a red herring - its nothing new.'
It has been reported that, according to the latest accounts for Safeway, the pension deficit went from£230 million to£304 million in the 47 weeks ending January 30.
This comes at an awkward time for the grocer. It plans to close three distribution sites, although no final decision has been made. The closures could potentially result in the loss of 2,500 employees.
Morrisons inherited the pension fund when it bought the Safeway chain for£3.3 billion last year.
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