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 officials had argued that they needed to cut costs in the face of a weak economy and competition from nonunionized companies such as Wal-Mart Stores Inc.
Raley's hired more than 500 replacement workers during the impasse. Union officials said they will be dismissed immediately.
Teel said workers, customers and the company all suffered during the 10-day strike, the first in the 77-year history of the West Sacramento-based chain.
"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," he said.