Kroger/Albertsons Merger Updates
UFCW Locals issue statement in response to Kroger and Albertsons release of store divestiture list
Here is the link to the divestiture list: https://assets.website-files.com/63128e32f4c52f8fbaea44ef/668d4f8e506219a28cf72800_Planned%20Divestiture%20Locations.pdf
February 26, 2024 –
Today the Federal Trade Commission (FTC) filed a lawsuit to reject the proposed megamerger between Kroger and Albertsons. This decision comes after UFCW 324 members and members across California and the nation fought relentlessly for 16 months to ensure the FTC and all other stakeholders knew just how bad it would have been for workers and their communities.
UFCW 324 and other UFCW local unions in California and nationwide 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.
Also this morning, California Attorney General Rob Bonta, along with the Federal Trade Commission (FTC) and a bipartisan coalition of states, announced the filing of a lawsuit that challenges the proposed merger of Kroger and Albertsons.
In a statement, Attorney General Bonta said, “This merger will leave Californians with limited choices over where to shop – and for workers in this industry, where to work. As many families continue to feel the burden of inflation, fighting corporate consolidation that threatens to increase prices and reduce service is more important than ever.”
UFCW 324 applauds Attorney General Bonta for standing up for the working people and communities of California in suing to block this merger.
This legal action marks a significant milestone for California’s grocery workers, who, in coalition with several UFCW locals across the country, have worked tirelessly over the past sixteen months, making sure their voices are heard loud and clear through the media and with customers by initiating store actions, meeting with federal and state regulators, attending listening sessions with Attorneys General, going toe-to-toe with representatives from Kroger/Albertsons and C&S Wholesale (the company they proposed to divest stores to), and attending webinars and press conferences.
All our work has kept the voice of grocery store workers front and center in this story, while exposing the potentially harmful effects of this proposed merger to our communities, our stores, and our jobs. Through this powerful show of collective strength, the FTC and California Attorney General clearly heard our message.
As the percentage of our income spent on food soars to a 30-year high, Attorney General Bonta’s lawsuit recognizes that ‘businesses facing less competition have the ability to charge higher prices without providing improvements to the quality of goods.’ Additionally, ‘anticompetitive supermarket mergers can impose other harms, including a reduction in labor market competition which may lower wages or slow wage growth, worsen benefits or working conditions, or result in other degradations of workplace quality.’
We commend Attorney General Bonta for his actions today, and his continued support for the working families of California.
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 includingSupermarket News story titled “UFCW cites ‘echoes of Haggen’ in proposed C&S deal”
9/27 – UFCW local 7 holds a Town Hall with members to update on opposition to proposed merger and take questions. Thousands attend.
October 2023
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 a 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/
December 8, 2023
PRESS RELEASE: UFCW Locals 5, 7, 324, 400, 770 and 3000
For Immediate Release: December 7, 2023
Contact: Jenna Thompson, jthompson@ufcw324.org
Economist Report Goes Deep into Economic Analysis of Proposed Mega Grocery Store Merger and the Harms to Working Communities
Buena Park, CA – 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 of 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.”
UFCW Local 324 Raises Concern and Caution About Kroger/Albertsons Divestiture Deal with C&S Wholesale Grocers
September 8, 2023
UFCW Local 324 has strongly opposed the proposed merger between Kroger and Albertsons since day one. Our position has not changed because of the news this morning.
Today’s announcement of a nearly identical divestiture scheme is a troubling sign that history could repeat itself, and raises more questions than it answers.
We’ve seen deals like this before. The news this morning is all reminiscent of the Haggen debacle where Albertsons bought Safeway in 2015 and subsequently sold off more than 100 stores to a chain called Haggen to pass antitrust review. Haggen declared bankruptcy only four months after the merger and 100+ stores were shut down, and thousands of workers were laid off. We have not been given any assurances that this deal with C&S is any different.
Important point – this sale is not happening *now* – it’s contingent on the overall merger being approved; so this deal only proceeds if and when the FTC approves. We don’t think this deal will appease the Federal Trade Commission or the various State Attorneys General that have expressed concerns over the merger.
We’re still gathering information on exactly how this will affect our hard-working members at these companies and as we get more information, will keep you informed on every step of the process.
Our highest priority is to ensure our members’ jobs, wages, pensions, and benefits are protected. We will use every resource to enforce our collective bargaining agreements and protect our members.
WHAT WE KNOW:
- Kroger and Albertsons have announced a divestiture plan with C&S Wholesale Grocers, LLC
- The agreement has C&S buying 413 stores, eight distribution centers, two offices and five private label brands across 17 states and the District of Columbia
- Up to 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 that were not purchased as part of this deal would be folded into the Kroger brands
- C&S has agreed to maintain the collective bargaining agreements we currently have with the companies
WHAT WE’RE DOING ABOUT IT:
- We’re requesting all documentation from the International Union and the companies
- We’re demanding a list of stores that are going to be sold
- We’re going to keep gathering information on exactly how this will affect our hard-working members at these companies and will keep you informed on every step of the process.
- We’re continuing to engage with the FTC to raise concerns about the overall merger and today’s divestiture plan and urge the regulators to oppose this deal
If you have any questions regarding this news, please attend our membership meeting next Wednesday, September 13, 2023 at 6PM. John Marshall, certified financial analyst with UFCW Local 3000 and an advisor to UFCW 324 will be in attendance to help answer any questions you have.
The in-person meeting will be held at our UFCW Local 324 Hall or you can join us via Zoom. To join us via Zoom, you must register at the link below. Translation in Spanish will be available.
Date: Wednesday, September 13, 2023
Time: 6 PM
Location: UFCW Local 324 Hall, 8530 Stanton Ave. Buena Park, CA 90620
To receive your zoom meeting link, register by clicking here.
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June 6, 2023
UFCW Local 324 Members Instrumental in Moving Policies Bettering Working People’s Lives
FOR IMMEDIATE RELEASE
June 6, 2023
Contact: Jenna Thompson, 949.246.1620, jthompson@ufcw324.org
UFCW Local 324 Members Instrumental in Moving Policies Bettering Working People’s Lives
Buena Park, CA – The United Food and Commercial Workers (UFCW) Local 324 is proud to announce that all seven pieces of legislation the union is supporting passed their first floor votes and have moved onto the second house. Passage of these bills would not have been possible without the involvement of UFCW Local 324 members who met with legislators in district, traveled to Sacramento to speak at press conferences, attended lobby days and told their personal stories to legislators on why they should support these bills.
“Our members’ personal stories and testimony about these bills were instrumental in getting legislative support for these bills,” said Andrea Zinder, president, UFCW Local 324. “The members took time off of work and left their families to travel to Sacramento to let lawmakers know how the legislation they’re voting on from paid sick leave to increased transparency around plastic bag fees affects working people. I’m proud of our members’ commitment and passion for these policies, which helps ensure elected officials keep working people in the front of their minds when they’re voting.”
“Getting to sit down with our elected officials and tell them just how a bill will affect my life was nerve-racking, but very empowering,” said Pio Figueroa, a grocery clerk at Ralphs in Laguna Beach. “I was able to represent not just my fellow UFCW 324 members, but grocery workers across the state, tell lawmakers how mergers and acquisitions will affect my livelihood and my future, and urge legislators to support a package of bills to mitigate the effects of the proposed Kroger-Albertsons merger. It’s important that us workers tell our stories and continue to educate elected officials because our experiences are valuable and must be told to ensure policies to support working people will get passed.”
The package of bills UFCW Local 324, and locals throughout California, are asking legislators to support are:
SB 725 (Smallwood-Cuevas): Safety Net for Grocery Workers Act
SB 725 would create a safety net for essential workers by requiring any grocery store that conducts a layoff as a result of a merger or acquisition to provide workers at least one-week severance pay for every year of service.
AB 647 (Holden): Grocery Worker Protection Act
This bill protects grocery and pharmacy workers’ jobs by strengthening California’s existing Statewide Grocery Worker Retention Law, requiring recall and rehiring rights for workers, and expanding protections to warehouse workers.
AB 853 (Maienschein): Californians’ Right to Know on Essential Goods and Services
AB 853 will require grocery or drug-retail companies to notify the California Attorney General 180 days in advance of finalizing a proposed merger or acquisition and submit an impact analysis report on the impact of the merger or acquisition on communities, such as food deserts, food prices, and access to food, and workers, such as supply of experienced grocery workers, unemployment, wages and benefits and more.
SB 553 (Cortese): Workplace Violence Prevention
SB 553 would implement basic health and safety measures to better prepare and protect all workers from workplace violence, such as maintaining workplace violence prevention plans, tracking workplace violence incidents, providing active shooter and shoplifter training, and prohibiting employers from requiring workers to approach active shoplifters as part of any shoplifting deterrence policy.
SB 616 (Gonzalez): Paid Sick Days for All Working Californians
SB 616 would increase the amount of paid sick leave days an employer is required to provide an employee from three to seven without requiring a doctor’s note.
SB 777 (Allen): Plastic Bag Fee Transparency
SB 777 will provide much-needed transparency and accountability on plastic bag surcharge allocations, as required in SB 270 (Padilla – 2014), by requiring retail establishments that sell plastic bags to submit a quarterly report to CalRecycle specifying the actual costs for implementing the provisions of SB 270, actual costs for providing the reusable bags, costs associated with a store’s educational materials or educational campaigns encouraging the use of reusable grocery bags, and costs associated with recycling.
AB 1286 (Haney): Stop Dangerous Pharmacies Act
AB 1286 is a first-in-the-nation patient safety law that protects Californians from life-threatening medication errors at understaffed and unsafe pharmacies. This bill gives pharmacists autonomy over unsafe working conditions and staffing levels and guarantees minimum staffing by ensuring that a pharmacist has a clerk or technician with them at all times.
