UFCW Locals issue statement on Kroger's updated proposed divesture plan

UFCW 5, 7, 324, 400, 770 and 3000

“This bigger proposed divestiture simply increases the challenge C&S, a New Hampshire-based wholesaler, would have trying to operate a hodgepodge chain of retail stores. They have no experience operating retail stores in these states, would still lack the IT, customer loyalty and manufacturing capabilities needed, and would most likely end up monetizing the real estate under many of these stores,” said a coalition of UFCW locals (Locals 5, 7, 324, 400, 770, 1564 and 3000). These local UFCWs have been central in the coalition opposing the proposed merger from the get-go and represent over 100,000 Kroger and Albertsons workers across the nation from Washington DC and surrounding states, and California, Colorado, New Mexico, Washington state and Wyoming.

Please go to www.nogrocerymerger.com for more information in the coalition efforts to oppose the proposed Kroger and Albertsons merger.

 Contact: Tom Geiger, 206-604-3421

Governor Signs Worker Protection Bill Championed by UFCW 3000 Grocery Store Workers into Law

OLYMPIA, WA – This morning, Governor Inslee signed into law Senate Bill 6007, a bill intended to protect grocery store workers and communities from the negative impacts of corporate megamergers in the grocery industry. Drafted in response to the news that grocery giants Kroger (owner of Fred Meyer and QFC) and Albertsons/Safeway are threatening to merge into one huge company, ESSB 6007 saw enormous support from local Washington grocery store workers and community allies, who advocated throughout the legislative session for its passage. 

“As I explained to legislators, we’ve already learned the hard way through past grocery chain mergers about the upheaval it causes for workers and shoppers when these chains merge and close or sell off neighborhood grocery stores,” said Yasmin Ashur, a UFCW 3000 member and checker at the Port Orchard Albertsons who testified in support of the bill and was on hand to see the governor sign it today. “We saw it in Port Orchard with the Albertsons/Safeway merger not that long ago. I am so proud to say I stood up with my fellow workers and helped pass legislation that will help protect our jobs.” 

This new legislation puts in place basic guidelines for large grocery stores when they change hands, like in an acquisition or merger, to ensure that essential food workers’ lives and our communities’ access to food and household necessities are not thrown into chaos. It requires public notice of new ownership, a period of job protection or re-hire for eligible current employees, protection of current working conditions and collective bargaining agreements, and mandatory engagement with local government if a merger would cause the closure of a store in an existing food desert. 

“The difference between unemployment caused by a pandemic and job loss caused by corporate buyouts is that the potential harm of a merger is foreseeable,” said Britt Leggett, a UFCW 3000 member and deli clerk at the Fred Meyer in the Ballard neighborhood of Seattle who also testified in support of the bill and attended the bill signing today. “That’s what this legislation seeks to remediate: to help workers keep their jobs and seniority when their stores changes owners. The law also ensures that constituents will be served by grocery workers who they know well, who have the skills to do their jobs, and follow the health rules to keep food safe.” 

Hundreds of grocery store workers with UFCW 3000 across the state sent messages to lawmakers encouraging the passage of SB 6007, and some traveled to Olympia to meet lawmakers in person.  

“It’s a big sacrifice for everyday working people to take time out of their busy lives to try and engage with the local political process,” said Joe Mizrahi, Secretary Treasurer of UFCW 3000. “But being in a union means we can share the load, work together, and make real change that impacts entire industries.” 

Update on Efforts to Oppose the Proposed Kroger + Albertsons Mega-Merger

Our efforts to stop the proposed mega-merger of Kroger and Albertsons reached a major milestone on Monday February 26 when the Federal Trade Commission (FTC) and nine State Attorneys General filed a lawsuit to challenge the merger. UFCW 3000 has been a national leader in opposing the proposed merger since the day it was announced in October of 2022. Since that time, we have been actively working with a core group of other UFCW locals as well as a wide range of over 150 diverse partner organizations across the nation and developed a “No Grocery Merger” coalition.
 
The effort to oppose the merger is not over yet. Kroger and Albertsons have both said they will challenge the lawsuits in court, so we expect it could be many months until an outcome is known. We will keep up the fight. And for right now we will also celebrate this major win in the struggle to protect workers, shoppers, and communities from the greed and over-reach of Kroger and Albertsons.
 
Another example of our effort to protect workers was our recent win on February 22 when we were successful in getting the Washington State Legislature to pass SB 6007 – a new law to provide protections for grocery store workers from the harm that can result when chains merge and the consequences include layoffs and store closures. 
 
For the thousands of members who have acted together – we are making a difference. The actions have included signing petitions, handing out leaflets to customers, raising our voices in local and national news stories, signing in support of our new WA law to protect workers, and so much more. And it shows that when workers and community come together and act as one, we can push back against some of the largest corporations in America.
 
Instead of spending all this time and money on a proposed merger that if allowed to proceed would lead to higher prices, closed stores, lost jobs, a reduced ability for union workers to negotiate strong contracts, and giving away billions to wealthy investors, these companies should be doing the necessary work to provide better wages and working conditions, and making stores safer.

More Detailed  Information:
On Monday February 26, 2024, the Federal Trade Commission (FTC) challenged the proposed mega-merger of Kroger and Albertsons siting concerns about how the merger would harm consumers and workers. Nine State Attorneys General (Arizona, California, District of Columbia, Illinois, Nevada, New Mexico, Oregon and Wyoming) joined the legal action as well. These are above and beyond the two other Attorneys General lawsuits from Washington and Colorado. Your support of the “No Grocery Merger” coalition is an important part of what led to this success. The 150 organizations across the nation who joined together last year to fight this merger was a show of both the power of solidarity and a diverse array of interests.

We remain committed to continue our diligent efforts to defend workers, customers and communities from the devastating harm that would be caused if such a merger were to proceed. And we also look forward to beginning to fix the broken food systems in this nation.

Additional information and past updates

1. FTC Press release: FTC Challenges Kroger’s Acquisition of Albertsons. Largest supermarket merger in U.S. history will eliminate competition and raise grocery prices for millions of Americans, while harming tens of thousands of workers, FTC alleges

2. FTC Complaint: Kroger's/Albertsons: Administrative Part 3 Complaint (Public) (ftc.gov)

3. Our press release including link to coalition partners and highlights of some of the activities over past 16 months to fight the proposed merger.

FTC Rejects Kroger - Albertsons Proposed Megamerger!

Press Release: UFCW Locals 5, 7, 324, 400, 770, 1564, 3000

For immediate release: February 26, 2024
Contact: Tom Geiger, UFCW 3000, 206-604-3421

UFCW Local Unions Applaud the FTC Decision to Reject Kroger and Albertsons Proposed Megamerger

UFCW local unions representing more than 100,000 grocery store employees working at Albertsons and Kroger-owned stores in over a dozen states and the District of Columbia applaud the FTC Decision to reject this proposed megamerger.

UFCW local unions have loudly and soundly opposed the proposed mega-merger of Kroger and Albertsons since day one because the megamerger would have resulted in lost jobs, closed stores, food deserts, and higher prices with reduced food choices – all of this would have been destructive for workers, consumers, and entire communities. Importantly, the FTC decision recognizes the threat that the merger would have caused goes beyond consumers and calls out that it would also have damaged essential grocery store workers’ wages, benefits and working conditions.

The FTC deliberations over the past 16 months, and the evidence that was gathered directed their well-founded decision. This is a step in the right direction for building a better food system in this country. Now we need to do all we can to help defend this decision and to turn the discussion towards building a better system that is more accountable to workers, shoppers, and the community.

The coalition of UFCW locals 5, 7, 324, 400, 770, 1564 and 3000 have been instrumental in the opposition to the proposed merger from the very beginning. Hundreds of actions, news stories, meetings with grocery store members, community, regulators and others and additional events have been part of that effort. Below is a varied sampling of some highlighted examples of this work.

---

Linked here are a more full list of media coverage, and a long list of opposition coalition members:

October 2022

10/13 – Kroger and Albertsons, without any warning, make announcement of proposed merger.

10/13 – Group of local UFCW unions, taking advantage of close relationships forged through supportive and collaborative efforts with each other’s collective bargaining with national grocers, quickly convene and issue joint statement immediately raising concerns about the proposal. Within hours the initial news coverage that had simply contained Kroger’s statement becomes a broader story including very strong opposition and concerns.

10/22  – Joint press release by local UFCWs flags the proposed massive payout of $4 Billion by Albertsons to wealthy shareholders as part of the proposed merger. News coverage includes KIRO 7 TV story.

10/26 -  Joint press release applauding lawsuits filed by Attorneys General in multiple jurisdictions to halt Albertsons special $4 billion payout to wealthy shareholders as part of the proposed merger which Albertsons initially announced would take place in early November.  The Washington State AG case succeeds in halting this rushed payment. While it ends up being allowed to proceed, it is not until early 2023 and only after under-oath testimony from company executives disclosing critical inside information that had been unknown to the public and exposed some of the key motivations behind the proposed merger.

November 2022

11/29 Held in-person Press Conference in Washington DC with Presidents and members from the six local UFCWs of the newly formed coalition from across 12 states and the District of Columbia  (Southern CA - UFCW 324 and 770, Northern CA – UFCW 5; Washington – UFCW 3000; CO & Wyoming – UFCW 7; DC and surrounding states – UFCW 400) and Teamsters local 38 representing over 100,000 Kroger and Albertsons. The press conference was held immediately prior to a planned US Senate Subcommittee hearing on the proposed merger and helped tell the story of the negative impacts of such a merger in local and national TV, print, and radio coverage.

December 2022

12/3 – Article goes into details about concerns. “EVERYONE SHOULD BE VERY SKEPTICAL OF THE SUPPOSED BENEFITS OF THE KROGER-ALBERTSONS MERGER - Kroger can’t help but promote its own interests over customers.”

January 2023

1/23 – Ongoing opposition by states and UFCW locals discussed in Supermarket News article.. 

February 2023

2/1 – More Perfect Union posts video discussing harms and concerns of proposed merger.

2/15 - Colorado Attorney General begins series of statewide listening sessions to hear from workers, community and others about their reactions to the proposed merger. UFCW Local 7 members attend these meetings and provide critical concerns about the proposal.

March 2023

3/24 – Launch of national coalition “NoGroceryMerger.com” and website as a one-stop for the anti-merger efforts with over 100 organizations. This also becomes a place to chronicle much of the media coverage around the country about the opposition and provides a degree of a check and balance to the Kroger and Albertson’s PR machinery. https://www.nogrocerymerger.com/news

April 2023

4/4-4/13 – Grocery store workers take actions in front of stores across the nation to connect with customers and share concerns about the proposed merger and how it would harm workers and customers with closed stores, lay-offs, higher prices, and in some locations food deserts. 

May 2023

After months of deliberation and ultimately a unanimous vote at the UFCW International Convention opposing the merger, UFCW International Union announces opposition to the proposed Kroger Albertsons merger. National press coverage is widespread including a Wall Street Journal headline: “Biggest Grocery Union Opposes $20 Billion Kroger-Albertsons Deal - UFCW International is concerned about potential divestitures and stores’ future viability.”

June 2023

6/29 – A week of actions held by UFCW grocery store workers across the nation include many in California that generated local press coverage like KTLA 5 TV story: Southern California grocery workers rally against Albertsons-Kroger merger (youtube.com) 

July 2023

7/26 – Coalition of UFCW locals issue statement condemning announced pay-outs of over $146 million to top executives if merger were approved.  Coverage includes Cincinnati Enquirer article.

August 2023

8/23 – State Treasurers raise concerns about proposed merger. News stories include Bloomberg Law article: “Kroger Grocery Deal Will Harm Workers State Treasurers Tell FTC”

September 2023

9/20 – National press conference held by coalition of local UFCWs to expose concerns about the recently announced divestiture to C&S Wholesale. Generates significant local and national press coverage and begins the public discussion of major concerns about C&S as an inadequate proposed remedy to the proposed mergers anti-trust challenges. Results in many stories including Supermarket News story titled “UFCW cites ‘echoes of Haggen’ in proposed C&S deal”

9/27 – UFCW local 7 hold Town Hall with members to update on opposition to proposed merger and take questions. Thousands attend.

October 2023

10/30 – Progressive Grocer published op-ed titled: Opinion: Kroger-Albertsons Proposed Mega-Merger Is a Threat to Workers and Shoppers Alike

November 2023

11/1 - FTC Chair Khan hold listening session in Denver and hears widespread concerns from workers, consumers, suppliers and others. Significant press coverage of event includes stories like the Colorado Public Radio story: “Grocery workers ask FTC chair to stop Kroger Albertsons merger during Denver visit” UFCW members from California, Washington and Colorado attend this important event to share their stories.

11/11 – Marshall Steinbaum, an economic from University of Utah, issues report that was supported by coalition of local UFCWs 5, 7, 324, 400, 770 and 3000, titled: Evaluating the Competitive Effect of the Proposed Kroger-Albertsons Merger in Labor Markets

11/14 – American Economic Liberties Project, hold national briefing and press event with UFCW grocery store members and representatives from five additional organizations including: Ranch Foods, Independent Grocers Association, Open Markets Institute, Farm Action and Alaska Public Interest Research Group

December 2023

12/11 – Teamsters International issues strong statement in opposition to merger divestiture proposal: TEAMSTERS CALL ON FTC TO REJECT KROGER-ALBERTSONS PROPOSED ASSET SALES TO C&S

January 2024

1/15 – UFCW local coalition Issues statement applauding Washington State Attorney General Lawsuit – with our quote in local and national press coverage of the lawsuit. Coverage includes national AP story: “Washington State Sues to Block Proposed Merger of Kroger and Albertsons Grocery Chains”

1/23 - Held two webinars (1/23 AM and PM) to update members on details of the proposed merger and collective efforts to fight the proposal with over 500 members in attendance.

1/25 - Held multiple meetings with Kroger as well as C&S Wholesale. We found out no new information in the meetings that dissuaded us from our position of opposition, in fact we found out additional concerning information as well continued to ask for information that was still not provided.

1/26 - Held national online press conference (1/26) to continue to clarify our position of opposition so media and members of the public understood our reasons and the various threats to workers, consumers and communities by both the proposed merger and the proposed divestiture plan – with over 50 reporters in attendance. Generated local and national press coverage educating the public, workers and others. Example: https://www.cbsnews.com/colorado/news/grocery-worker-union-gives-update-proposed-kroger-albertsons-merger-timeline/

February 2024

2/1 - UFCW 3000 and Teamsters 38 hold live Telephone Town Hall to update and educate members, and answer questions of members with thousands of members in attendance.

2/14 – Colorado Attorney General files lawsuits against the merger. Local and national coverage. One example: CBS News Colorado: https://www.cbsnews.com/colorado/news/colorado-attorney-general-files-lawsuit-block-merger-between-kroger-albertsons/

2/22 – The Washington State Legislature passed SB 6007 – a new law to provide protections for grocery store workers from the harm that can result when chains merge and the consequences include layoffs and store closures. 

Press Release: Opposition to Albertsons/Kroger Mega-Merger Gains Momentum

For Immediate Release: February 20, 2024

Contact: Tom Geiger, UFCW 3000, 206-604-3421

After States Sue to Block Proposed Albertsons + Kroger Mega-Merger, Opposition Led By UFCW Local Unions Gains Momentum

Our coalition of local UFCW unions, collectively representing over 100,000 Kroger and Albertsons workers in over a dozen states, welcomes the actions by the Colorado Attorney General last week, joining others in moves to block the proposed merger of Kroger and Albertsons.

Our coalition has been outspoken in its opposition to the proposed mega merger of Kroger and Albertsons since it was first announced by those companies in October of 2022. Over the last 16 months, our opposition has both deepened and broadened. The revelations contained in the lawsuits filed by the Attorney General of Washington last month and the Attorney General of Colorado last week, have only increased our opposition to the proposed merger and further exposed the damage it would inflict on consumers, workers, and communities if it were allowed to proceed. The addition of the companies’ deeply flawed divestiture plan has likewise increased our opposition as we believe it would result in the closure of grocery stores in hundreds of communities. Again, we oppose this merger in the strongest terms possible and remain hopeful for federal enforcement action to block it and protect consumers, workers, and the public.

Background: In addition to our coalition’s volumes of actions and press statements over the past 16 months and actions by others in the NoGroceryMerger.com coalition, the below are statements from the two International Unions representing most unionized grocery store and grocery warehouse workers:

• Statement from UFCW International after a unanimous vote at the UFCW Convention to oppose the proposed merger: https://www.ufcw.org/press-releases/americas-largest-union-of-essential-grocery-workers-announces-opposition-to-kroger-and-albertsons-merger/)

• Statement from Teamsters International in opposing the proposed divestiture: https://teamster.org/2023/12/teamsters-call-on-ftc-to-reject-kroger-albertsons-proposed-asset-sales-to-cs/

Stop the Merger Telephone Town Hall Call Thursday!

Attention all UFCW 3000 Grocery Store Members. You are invited to join our live Telephone Town Hall on Thursday, February 1 at 4pm to hear updates on our efforts to oppose the Kroger and Albertsons’ proposed merger, and a live Question and Answer session with members on this important topic. We will be joined by our union’s top officers, experts, and also our partners from Teamsters 38.

When your phone rings Thursday at 4pm, just answer and you will join the call. If for some reason you do not get a call or you get disconnected, you can also join us by dialing 1-888-652-0383 and entering meeting ID 7803 during the time of the call.

National Press Conference on Opposition to Kroger and Albertsons’ Proposed Mega-Merger

For Immediate Release – Wednesday January 24th, 2024

PRESS ADVISORY for Friday, January 26th, 2024 (9AM PST, 12 noon EST)

Virtual Press Conference. Register HERE in advance

Grocery Store Workers and their UFCW Local Unions Hold National Press Conference on Ongoing Efforts to Oppose Kroger and Albertsons’ Proposed Mega-Merger

What: A national press conference to update media and expose many of the troubling details underlying the proposed merger as well as debunking the claims being made by the companies about themselves, the reasons for the proposed merger in the 1st place, the troubling picture of C&S as the proposed divestiture company, and more. Short informational session will be followed by a Q and A session for the media.

Who: 

• Faye Guenther, President, UFCW 3000 (WA)

• Tom Olson, Grocery store worker and UFCW 7 member (CO)

• John Marshall, CFA, Capital Strategies Director, UFCW 324 (CA) and UFCW 3000 (WA)

Upon request, post event interviews can be arranged for media with local grocery store workers in Washington State. And interviews with grocery store members at UFCW locals in CA, WA, CO and the Washington DC/surrounding states areas can also be arranged.

When: Friday January 26, 2024: 9 AM PST, 12 Noon EST

Where: Pre-register here in advance of the press conference HERE >>

Contact: Tom Geiger, UFCW 3000, 206-604-3421

Update on Our Efforts to Protect Workers and Customers from the Proposed Kroger-Albertsons Merger/C&S Divestiture

We wanted to provide you with an update on our efforts to oppose the proposed merger between The Kroger Company (parent company of Fred Meyer and QFC) and Albertsons Companies, Inc. (parent company of Safeway, Albertsons and Haggen stores) and their proposed divestiture of stores to C&S Wholesale Grocers.

1. On Monday, January 15, Washington State Attorney General Bob Ferguson filed a lawsuit in King County, Washington court to block the proposed merger. Our UFCW 3000 endorsement of this legal action and a quote from UFCW 3000 grocery store member Yasmin Ashur who works at the Port Orchard Albertsons was part of the news coverage in the Seattle Times news article linked above and other news stories nationwide.

2. The Federal Trade Commission (FTC) is continuing its review of the proposed merger, and we continue to work closely with them. Many analysts feel it is more than likely that the FTC will challenge the merger. Our local union, in coalition with other local unions from across the United States, has provided extensive information about the proposed merger to the FTC. We remain hopeful that the FTC will also challenge the proposed merger. Both the courts and the FTC have the power to potentially block the merger from being completed.

3. Recently, Kroger and Albertsons have announced a delay to the merger timeline, until potentially as late as August. No doubt this delay is in response to both news of the lawsuit and the pressure campaign mounted by a broad swath of consumer groups, unions, farmers, ranchers, and others committed to preventing the harmful effects of this merger.

JOIN US!

All our grocery store members are invited to join us for a webinar on Tuesday, January 23. Please go to the link below to register for your preferred webinar:

MORNING MEETING:

Tuesday 1/23/24

8 AM

EVENING MEETING:

Tuesday 1/23/24

5 PM

---

Additional information:

• This is far from a done deal: Kroger and Albertsons cannot sell stores to C&S Wholesale Grocers unless and until a merger were approved by regulators, and now, because of the Washington State lawsuit, the courts.

• Contrary to comments made by these companies, this proposed merger is not at all necessary. Nor does their announced divestiture plan remedy our concerns. Both Kroger and Albertsons are doing well financially and making strong profits.

• The proposed merger is really about greed. These two companies have already profited so much from the labor of grocery store workers all while often under-staffing stores and over-charging customers. Instead of investing in improved working conditions and reduced prices, they have prioritized high CEO pay, large dividends, including an Albertsons $4 Billion give away in early 2023, and massive stock buy backs.

---

Keeping up the Effort to Protect Workers and Customers

Our efforts over the past year and a half, from actions at the store level, to meeting with regulators, to helping to educate the public and generate hundreds of TV, radio and newspaper stories across the nation, have and continue to have an impact. We can’t let up now. The proposed Kroger-Albertsons merger would no doubt be disastrous for consumers in the form of higher prices, for workers in the form of lost jobs, lower wages, and crippling losses to pension and health benefit plans, for farmers and ranchers who will lose a major buyer of their products,  and for thousands of Americans who would find themselves living in food and drug-store deserts without adequate access to everyday necessities. If you haven’t done so already, please tell the FTC and you can also write to Washington’s Attorney General to thank him for his recent lawsuit and let him know why you oppose the proposed merger.

WA Attorney General files lawsuit to block Kroger-Albertsons mega merger

We have been clear and strong in our opposition to the proposed Kroger and Albertsons merger from day one. Attorney General Ferguson has been a leader in the effort to protect workers and consumers and he led the effort last year to try to stop Albertsons' $4 billion payout to wealthy shareholders. That was important. The announcement today of his lawsuit to stop the merger itself is welcome news.

 “As a grocery store worker and leader in our union, I feel very supported to have Attorney General Ferguson taking action to protect us from this bad merger proposal. Workers, shoppers and our communities need to prevent this proposed mega-merger from taking place,” - Yasmin Ashur, UFCW 3000 grocery store worker from the Albertsons in Port Orchard, WA.

Update on Proposed Kroger/Albertsons merger

To all of our members and #StopTheMerger coalition partners and allies:

We wanted to share a brief update with you on where things stand with the proposed Kroger/Albertsons merger and our collective efforts to stop this harmful deal.
 
First off, we want to clarify where things stand right now. Despiterecent news reports to the contrary,the Federal Trade Commission (FTC) does not need to make a decision this week.
 
The bottom line is this: based on the information we have now, we expect the FTC to make a decision on the proposed merger early in the new year. This is consistent both with our understanding of the process and with public statements made by FTC chair Lina Khan.
 
Once the FTC has completed its investigation of the merger deal, there are three possible outcomes:

1. The FTC can seek to stop the transaction by filing a preliminary injunction in federal court and the case will go to administrative trial. We believe our campaign has in part made this the most likely outcome and the trial will take many months to conclude.
   or

2. The FTC can enter into a negotiated consent agreement with the companies and allow the deal to go forward under certain conditions, e.g.divestitures. This is how past mergers of this kind have been treated under previous administrations, but we believe it is unlikely in this case under the Biden administration.
   or

3. The FTC closes its investigation and allows the deal to move forward unchallenged. We believe this is the least likely scenario.

Secondly, we’d like to draw your attention to some recent activities and developments:

• A new report was issued by economist MarshallSteinbaum from the University of Utah demonstrating how the deal could dampen labor power and thus lead to devastating outcomes for workers. You can download the report and view our press release highlighting it, which was picked up in a few media stories.

• This week, our union siblings at the Teamsters International union have come out against the companies’ plans to divest hundreds of stores to C&S. You can read their press release here.

• Last month, our friends at American Economic Liberties Project hosted a great virtual event on the “disaster in the making” that is this merger, featuring workers, independent grocers, farmers, and consumers that the proposed merger would directly impact. Check out the video on YouTube.

• Today, UFCW members in Southern California will meet with California Attorney General Rob Bonta and shared their stories about previous mergers in the grocery industry and their concerns with the proposed merger between Kroger and Albertsons.

Lastly, we’d like tothank all of you for being a part of this effort to protect workers and our communities from the devastating impacts of this proposed mega-merger.As always, please do not hesitate to reach out to us if you have any questions or suggestions.
 
In solidarity,
#StopTheMergerCoalition
www.nogrocerymerger.com

PRESS RELEASE: UFCW Locals 5, 7, 324, 400, 770 and 3000

Economist Report Goes Deep into Economic Analysis of Proposed Mega Grocery Store Merger and the Harms to Working Communities

A new report issued by economist Marshall Steinbaum from the University of Utah delves into the proposed mega-merger of Kroger and Albertsons in ways that have not been fully looked at over the past year. This is important information for any people involved in researching, reporting upon, or assessing the potential impacts that such a mega-merger could have.

• Marshall Steinbaum’s new research paper, utilizing a large database of posted job offers, demonstrates that the Kroger-Albertsons merger would reduce individual worker’s bargaining power as well as their union’s power.

• The paper shows that increased employer concentration has negative effects on both earnings and work hours.

• Importantly, the paper shows that union workers receive higher pay when there are two bargaining counterparties in a given labor market as opposed to when there’s only one.

The Presidents from UFCW Locals 5, 7, 324, 400, 770, and 3000 who have been leaders in the efforts to oppose the proposed merger since it was announced over a year ago provided support for the report:

“Our ability to raise wages and standards in general depends on our ability to pit these companies against one another at the bargaining table—threaten to strike one while directing customers to the other,” the presidents called out. “If these two companies were to become just one company, that power would go away and that harms workers as well as customers.”

The full report, entitled: Evaluating the Competitive Effect of the Proposed Kroger-Albertsons Merger in Labor Markets, can be found here:  https://marshallsteinbaum.org/assets/kroger_albertsons_labor.pdf

Workers across the country have experienced the impacts described in the report:

“In our most recent contract negotiations we were able to leverage one company’s fear of losing market share to their competitor and we used that to get improvements in our contract that they wouldn’t have agreed to otherwise. That helped us get historic raises that would never happen if there were just one company,” says Rachel Fournier, a Los Angeles, CA Ralphs employee.  

“I feel this merger would only bring a negative impact on the workers. Staffing, safety, and our seat at the bargaining table would all come under threat while the corporations reap the benefits from our hardship,” echoed Rena Zagala-Fondren, a Safeway worker from Los Gatos, CA.

A Seattle area worker had an additional response. “For years we have been facing reduced staffing levels in our stores – during and after COVID. Our experience is that this would only get worse if the mega merger were allowed. We need to increase staffing, improve our schedules, and increase our leverage as unionized grocery store workers, not go the other way,” said Sam Dancy, a Front-End Manager at Kroger-owned QFC store in West Seattle, WA.

Jill Young, a just-retired grocery store worker from Grand Junction, CO stated, “I started in ’86, was on strike in ’93 and ’96. Over the years I have been injured more than a couple times and had to take off six months or more to get better. The company tried to cut the leave time to one month. Having a union that was organized, and willing and able to strike was part of what kept that benefit in place. There are young workers just starting out who deserve a future with a union workplace and the leverage I have had. This proposed merger threatens that future.”

Judy Wood, a cake decorator for Albertsons in Orange, CA raised several of her concerns, “The power we have when we bargain collectively leads to improvements in stores for both workers and customers. Workers have higher wages and stores are safer now because we have the power to fix hazards that we won through our last contract bargaining session. If this merger goes through, we will lose some of that power, putting the public in a worse position.”

Benjamin Blum, a night crew employee at Thousand Oaks, CA Ralphs added his thoughts: “Our unionized workplaces have competitive wages and benefits because workers have fought for and won them. If the proposed megamerger were approved, workers will lose leverage and be more vulnerable to a single massive employer that would bully and retaliate against workers.”

#-#-#

Town Hall Call Monday: Important Union Update on Kroger/Albertsons Merger

Important Union Update on Kroger/Albertsons Merger

On Friday, Kroger and Albertsons announced plans to sell at least 413 stores across the country to C&S Wholesale Grocers (C&S) as part of the mega-merger of the two companies.

Our coalition of local unions have strongly opposed the proposed merger between Kroger and Albertsons since day one. Our position has not changed because of the recent news from Kroger and Albertsons of their plans to sell some stores.

Important point right off the bat -- this sale is not happening now and it’s contingent on the overall merger being approved, a merger we are fighting. As a result, this sales deal only moves ahead if and when the federal regulators who are reviewing the overall merger approve it. We don’t think this sales deal will appease the Federal Trade Commission or the various State Attorneys General that have expressed concerns over the merger.

An additional 237 stores may also be sold to C&S as part of the deal, depending on the results of the regulatory review of the merger with the Federal Trade Commission (FTC).

The stores would not change hands unless and until the FTC approves the overall Kroger/Albertsons merger.

UFCW 3000 Telephone Town Hall Planned for Monday

We are planning a live Telephone Town Hall for our grocery store members on Monday, September 11 at 5 PM to share updated information and to address your questions. When your phone rings Monday at 5, just answer it and you will join the call. If for some reason, you don’t receive a call, you can call in to join us by dialing 1-877-365-5237 and entering meeting ID number 7585.

As of now, according to Korger and Albertsons, about ¼ of the stores to be sold to C&S, if and when the merger is completed, are in Washington state. The exact stores have not been identified at this time. There are no further details on store divestments available at this time. We will continue to keep you updated as more information becomes available. We will use every available resource to enforce our contracts with Safeway and Kroger and protect our members.

#StopTheMerger Coalition

We remain opposed to the Kroger/Albertsons merger for the negative impact it will have on our members, customers and communities. That’s why we’ve partnered with more than 100 unions and organizations nationwide in the Stop The Merger Coalition to urge the Federal Trade Commission to oppose this deal. Visit NoGroceryMerger.com to learn more and take action today.

NoGroceryMerger.com

Send a Message to the FTC

The Federal Trade Commission has the power to block this merger. Take action now by sending a message to the FTC to let them know we stand united in opposition to the Kroger/Albertsons merger.

Send a Message

Coalition of UFCW Local Unions Raise Concern and Caution About Kroger/Albertsons Divestiture Deal with C&S Wholesale Grocers

UFCW Locals 5, 7, 324, 400, 770, 1564, 3000

Des Moines, WA – Today, a coalition of United Food & Commercial Workers local unions in fourteen states and the District of Columbia representing more than 100,000 Kroger and Albertsons workers released the following statement regarding the announcement of a divestiture deal to sell hundreds of Kroger and Albertsons stores to C&S Wholesale Grocers:

“We have raised alarms about the proposed Kroger/Albertsons merger from the very beginning— from threats of store closures, higher prices and reduced competition, the harm to unionized workers’ ability to negotiate strong contracts, as well as the negative ripple effects lower union density would have on workers throughout the grocery industry. News of a possible deal with C&S to buy hundreds of stores as part of the proposed merger in no way reduces those alarms. Indeed, in many respects this announcement raises the level of concern for our members.

“Workers and shoppers have been seriously harmed by large-scale sell-offs in the past, orchestrated as part of a potential merger. It was only in 2015 that private equity-owned Haggen acquired a large number of stores as part of a divestiture scheme to appease antitrust regulators in the Albertsons/Safeway merger. It took less than a year for that company to go bankrupt and for Albertsons to pick up the very same stores it had divested for a fraction of what Haggen paid less than a year before, thus undoing the remedy to resolve antitrust concerns. Moreover, thousands of workers lost their jobs and were forced to start over. Today’s announcement of a nearly identical divestiture scheme is a troubling sign that history could repeat itself.”

The above statement can be attributed to the following UFCW local presidents:

John Nunes, UFCW Local 5 President
Kim Cordova, UFCW Local 7 President
Andrea Zinder, UFCW Local 324 President
Mark Federici, UFCW Local 400 President
Kathy Finn, UFCW Local 770 President
Greg Frazier, UFCW Local 1564 President
Faye Guenther, UFCW Local 3000 President

Contact: Tom Geiger, UFCW 3000, 206-604-3421

Stopping the merger update

Since the day the proposed merger of Kroger and Albertsons was announced, our local unions and members have been taking action to protect our stores, our jobs, and our customers. Keeping you all informed during this process has been a priority. Thousands of you joined our Telephone Town Hall Update in May with members from the West Coast, the East Coast, and many states in between. Since May , members, community and allies across the country have been working hard as part of the “Stop the Merger Coalition" to convince the Federal Trade Commission (FTC) that this merger is a bad deal for everyone.

Here's a brief snapshot of what we've been doing to oppose the devastating proposed merger between Kroger and Albertsons:

• Getting the Word Out: spreading the word through social media, press releases, and community events. Members have been letting everyone know why this merger is a major problem, including a threat to jobs, competition, higher prices, and how it will hurt our local communities.

• Talking to Decision-Makers: advocating with policymakers in the federal government and state Attorneys General in California, Washington, Idaho, Colorado, Washington, DC, and many more to ensure they understand our concerns. UFCW Members are testifying, sharing stories, and making sure your voices are heard where it counts. The news coverage has been massive and important in getting our stories out to the public.

• Making Our Case: UFCW members are leading the fight to show federal and state policymakers that prioritizing the impact on grocery store workers is paramount to a thriving network of grocery stores in our local communities. Without workers’ lives being a primary consideration, the ones who benefit will be the Kroger and Albertsons executives. Albertsons owners already took nearly $4 billion out of the company and now are looking to cash in with a $146 million golden parachute.

• Taking It to the Streets: promoting rallies, petitions, and meetings. We're making sure our communities know what's at stake and getting them involved. We've joined forces with other groups like farmers, community allies, and consumer advocates who are also worried about this merger. The more people we have on our side, the stronger our message becomes.

Our fight isn't over. Your involvement is crucial to our success. For example, by adding your stories of harm from past mergers, we are forcing the FTC to take notice that the people who are hurt most by these mega-mergers are the workers and the communities they serve.

Take Action

The FTC has the power to block this merger. Take action now by sending a message to the FTC to let them know we stand united in opposition to the Kroger/Albertsons merger.
 
We'll keep you posted as the fight continues. In the meantime, talk to your Union Rep or Steward to learn how you can be more involved.

UFCW 3000 Member Story: Astrid Kryger

Astrid Kryger fighting to Stop the Merger!

Meet Astrid Kryger from the North Bend QFC. Astrid has been getting more involved with her union recently after the announcement of the Kroger/Albertsons mega-merger. The impacts of that merger could cause food prices to further inflate, and cause stores to close displacing workers. UFCW 3000 and other UFCW local unions have opposed this merger since it was announced in late October, and just 2 weeks ago UFCW International announced that it was also opposed to the merger and was filing a complaint with the Federal Government to prevent the merger from going through.

Astrid participated in our actions across Washington State to tell the public about how this mega-merger is bad for everybody. Astrid and other grocery store workers handed out shopping bags to customers as they talked to them about opposing the merger and asked them to send a message to the FTC via the Stop the Merger webpage. The bag action was well received by the North Bend shoppers who had much love and support for Astrid and the action at the North Bend store. She is also motivating other members to get informed and take action and is looking forward to learning more and becoming more active with her union and in her community.

UFCW 3000 Member Stories: Dalton Adams

Dalton was one of many grocry members participating in the stop the merger actions across the country recently.

Dalton Adams is a shop steward at the Downtown Bellevue QFC store and is active in many parts of our union. In January of this year, he went to Olympia to talk with Washington State Legislators about the increasing safety issues he and his coworkers face around organized retail theft and strongarm robberies. The political pressure forced Kroger and other employers to come to the table and work with our union on how to best protect workers.

Safety on the job is a big issue for Dalton and other shop stewards, last fall they came together with workplace leaders from 3 states at a Safety Summit to share stories, learn, and organize to make sure that workers are safer on the job.

Dalton and other stewards are also very concerned about what would happen to their jobs and communities if the Kroger/Albertsons mega-merger was allowed to go through. He and other grocery store workers took recently action recently across the country to inform customers of the perils of this monopoly-creating merger. Dalton asked customers and send a letter to the FTC via the No Grocery Merger Website, telling them to stop this merger from moving forward.

Dalton knows when workers organize, take action, and show solidarity with each other, what we can accomplish together is greater than what we could do alone.

UFCW 3000 Member Story: Michael Tewolde

Michael talks with a customer about why the Albertsons/Kroger merger will harm the othello community in South Seattle.

Michael Tewolde is a union leader and front-end Person-in-Charge (PIC) at the Othello Safeway in South Seattle. He has worked at Othello for several years and has seen the neighborhood change as more people have moved into the new surrounding developments. Having affordable healthcare and pension plans are important to Michael and is why he was one of the hundreds of union workers at Albertsons, Safeways, Haggens, QFCs, and Fred Meyers last week who took action at the entrances to their stores to educate their customers about why a Kroger/Albertsons could mean that the Othello store could close and that prices would most likely go up.

Michael grew up in the East African nation of Eritrea and speaks Tingrinya, one of Eritrea's official languages. If you are shopping at his store, please make sure to stop by and say hello!

UFCW 3000 Members & Grocery Store Workers Across Nation to Hold Actions Opposing Kroger-Albertsons Megamerger

Coming soon to a store near you!

Leaflet Actions in Front of Kroger and Albertsons Stores “Stop The Merger – protect jobs, shoppers and access to food”

Grocery store workers from seven UFCW Local Unions – representing over 100,000 Kroger and Albertsons workers in eleven states and the District of Columbia – will hold actions in front of stores between April 4th – 13th to connect with customers about the impacts of the proposed megamerger.  Since the companies announced the proposed merger in October, workers, unions, consumer groups and others have raised the alarm about the negative impact on workers, shoppers, and suppliers such as farmers and ranchers. In mid-March a national coalition of over 100 organizations was announced with a new website: https://www.nogrocerymerger.com/

If the $24.6 billion megamerger is approved, it will drive out competition, increase food prices, create food deserts, and put up to 100,000 union jobs at risk. The growing opposition is asking the Federal Trade Commission to block the megamerger from moving forward and prevent its negative impact on both consumer and labor markets.

All the local unions include: UFCW 3000 (WA & northern ID), UFCW 400 (MD,  DC, VA, WV, OH, KY, TN), UFCW  7 (CO & WY),  UFCW 770 (Southern CA), UFCW 5 (Northern CA), and UFCW 324 (Orange County CA/Southern Los Angeles County) and  UFCW 367, South Puget Sound of Washington State.

Join Us!

As part of these actions in states across the nation. UFCW 3000 will be holding over twenty-five actions across Washington state, including the following dates, times, locations:

4/4/2023 11:00AM
Fred Meyer Port Orchard,
1900 SE Sedgwick Rd, Port Orchard, WA

4/4/2023 11:00AM
Fred Meyer Ballard,
915 NW 45Th St, Seattle, WA

4/5/2023 10:30AM
QFC 825,
2500 SW Barton St, Seattle WA

4/5/2023 11:00AM
Safeway 3317,
3355 Bethel RD Port Orchard, WA

4/5/2023 11:00AM
Safeway 414,
4301 212th St SW, Mountlake Terrace, WA

4/5/2023 11:00AM
Safeway 464,
17246 Redmond Way, Redmond, WA

4/5/2023 12:00PM
QFC 826,
15600 NE 8th St Suite K-1 Bellevue, WA

4/5/2023 1:00 PM
Haggen 3450,
2601 E Divition St, Mount Vernon, WA

4/5/2023 1:45 PM
QFC 829,
460 E North Bend Way, North Bend, WA

4/5/2023 2:00 PM
Albertsons 471,
301 Marysville Mall, Marysville, WA

4/5/2023 2:15 PM
Haggen 3436,
757 Haggen Dr, Burlington, WA 

4/5/2023 3:00 PM 18325
Fred Meyer 13,
18325 Aurora Ave. N

4/5/2023 4:00 PM
Albertsons 3412,
1128 N Miller St, Wenatchee, WA

4/5/2023 4:30 PM
Safeway 3213,
15332 Aurora Ave N Shoreline, WA

4/6/2023 12:00 PM
Albertsons 453,
4621 Sunset Blvd. NE, Renton, WA

4/6/2023 12:00 PM
Safeway 494,
152 Roosevelt Way E, Enumclaw, WA

4/6/2023 12:00 PM
Albertsons 483,
4010 A St. SE, Auburn, WA

4/6/2023 3:00 PM
Fred Meyer 172,
10201 SE 240th St., Kent, WA

4/6/2023 3:00 PM
Fred Meyer 209,
9925 State Street, Marysville, WA 

4/6/2023 4:00 PM
Safeway 252,
690 Gage Blvd, Richland, WA 

4/6/2023 4:00 PM
Albertsons 265,
6520 North Nevada St., Spokane, WA

4/6/2023 6:00 PM
Fred Meyer 101,
Wellsian Way, Richland, WA

4/7/2023 11:00 AM
Safeway 1524
1401 NE McWilliams Rd, Bremerton, WA

4/7/2023 11:00 AM
QFC Ballard,
5700 24th Ave NW, Seattle, WA

4/7/2023 11:00 AM
Safeway 1524,
1401 NE McWilliams Rd Bremerton WA 98311

4/6/2023 12:00 PM
QFC Holman Road,
9999 Holman Rd NW, Seattle, WA

4/7/2023 12:15 PM
Fred Meyer 171
5050 WA-303, Bremerton WA

Anti Kroger-Albertsons merger coalition launch Stop The Merger website

United in Opposition to the Kroger-Albertsons Merger, Coalition of Over 100 Organizations from Across the Country Join Forces & Launch the “Stop the Merger” Website  

For Immediate Release: March 14, 2023
Contact: Tom Geiger, UFCW 3000, 206-604-3421

The Stop the Merger Coalition includes national, state and local organizations from across US

Des Moines, WA (March 14, 2023) – Today, a coalition of 100 organizations representing diverse interests from around the country have joined forces in the “Stop the Merger” campaign, a national and state-level effort to oppose the proposed $25-billion merger of grocery store chain giants Kroger and Albertsons. The coalition is announcing the launch of its website (www.NoGroceryMerger.com) which includes facts and research about the proposed merger’s negative impact, stories from community members, workers, and others, as well as tools for organizations and individuals to take action and communicate their opposition to the Federal Trade Commission (FTC), which has the regulatory oversight responsibility to review proposed mergers such as this.

In October of 2022, Kroger and Albertsons announced they would pursue a $24.6 billion mega-merger, joining together the two largest standalone U.S. grocery chains, and thereby creating a monopoly in many areas across the country. Both these chains have stores and manufacturing facilities in nearly every state, employing over 700,000 workers across their numerous local banners. The mega-merger, currently undergoing FTC review, would drive out competition, increase food prices, create food deserts, and put hundreds of thousands of jobs at risk as well as hurt local farmers and ranchers. 

The coalition of over 100 organizations has written numerous letters to the FTC and state Attorneys General, held meetings with federal and state elected officials and regulators, held press conferences and virtual town halls, attended public events on the merger hosted by government officials, and participated in various local community activities opposing the merger. All this activity has helped reveal growing evidence that shows the real motives for the proposed merger: corporate greed at the hands of C-Suite executives and the private equity firms that are significant owners of their stock. The diverse and large number of groups across the nation now include organizations whose focus includes consumer protection, faith, economic justice, anti-poverty, food justice, environmental protection, women’s rights, Black Indigenous People of Color advocates, farmer and farmworker advocates, and many others.

For more information on the negative impact of the mega-merger, please visit: NoGroceryMerger.com. Interested organizations can also join the Stop the Merger Coalition through the form on the site.

# # #

The Stop the Merger campaign includes over 100 national, state and local organizations representing diverse interests who share a common goal: to stop the proposed Kroger-Albertsons grocery merger because of its negative impact on our nation’s communities. For more information visit www.NoGroceryMerger.com