Kroger/Albertsons Merger Updates

December 13, 2024

UFCW Locals 7, 324, 770, 1564 and 3000

For Immediate Release

December 13, 2024

Contact: Jenna Thompson, 949.246.1620, jthompson@ufcw324.org

 UFCW Local Unions from Stop the Merger Coalition Oppose Kroger’s Wall Street Giveaway, Call On Board of Directors to Immediately Replace CEO Rodney McMullen

Buena Park, CA – A day after failing in its bid to merge with Albertsons and dominate the traditional supermarket industry, Kroger abruptly announced a massive giveaway to shareholders—a $7.5 billion stock buyback, $5 billion of which is slated to be paid out on an accelerated timetable. The massive shareholder payout towers above the commitments the company had promised to reduce prices for consumers and to invest in wages during the recent merger fight. Flip flopping in less than a day’s time from a strategy of aggressive growth through the Albertson’s acquisition on Tuesday to one of dramatic downsizing through shedding $7.5 billion on Wednesday should be seen for what it seems to be – an attempt to buy shareholders’ mercy through a short-term boost to the stock price in order to save CEO Rodney McMullen’s job.

“At a time when our stores need significant investments in staffing, repairs and remodels and our customers need relief from high prices, it is outrageous that Rodney McMullen would try to distract attention from his multiple failures as CEO by announcing a massive one-time giveaway to shareholders,” said Kim Cordova, President of UFCW Local 7 in Colorado and Wyoming.

During the recent three trials to block the merger, Kroger officials repeatedly expressed concern that rising competition from Amazon, Walmart and other nontraditional retailers represented an “existential” threat to Kroger’s market share. Within hours of that merger’s failure, it appears that Mr. McMullen’s first substantive action—apart from deciding to sue Albertsons—is to fleece $7.5 billion from the company’s treasury instead of making investments that would build market share. This $7.5 billion is on top the nearly $1 billion the Company already wasted on the failed merger. Apparently, in McMullen’s view, the threats to Kroger’s survival are not so great that the company needs these resources.

What could a competent CEO do with $7.5 billion? At the most basic level, these funds could be used to: 1) invest in lower prices for consumers, making Kroger more price competitive; 2) invest in higher wages and more staffing to reduce turnover; 3) remedy chronically empty shelves; and, 4) provide better customer service. The $7.5 billion in share buybacks announced Wednesday are approximately 10 times the value of the promised investments in price reductions the company had said it would make if the merger were approved. The Company made a similar billion-dollar commitment to invest in wages. Workers know all too well just how badly needed these additional wages and hours are for the stores’ operations, and how they would allow the company to grow its market share.

What else could a competent executive do to grow market share? They could do what Amazon, Walmart, Costco and Trader Joe’s have done: build new stores. Those other retailers have consistently grown their grocery store count each year over the past decade, but there are fewer Kroger stores today than there were in January of 2016. How many new Kroger stores could $7.5 billion buy? Based on an average pre-tax cost of $35 million per store, Kroger could build 280 new combination stores (such as Ralphs, King Soopers or QFC) each with an average square footage of 71,000 sq ft, for a total of approximately 20 million new square feet—the equivalent of over 1,300 Trader Joe’s stores, about 2.2 times as many Trader Joe’s as currently exist.

* This is actually larger than the total number of stores currently operated by Kroger.

“These stores are part of our community—millions of consumers shop there for their families’ food, and hundreds of thousands of union members work there. These billions could be used to improve our food supply, reduce prices, reduce food deserts and more,” said Kathy Finn, President of UFCW 770 in Southern California. “That money is not a personal piggy bank that Rodney McMullen can raid in order to save his job.”

“As the president of a union local that represents 11,700 Kroger workers, I don’t take lightly the decision to call for the replacement of the company’s CEO, but Rodney McMullen has mismanaged this company so badly there is no other way forward,” said Faye Guenther, President of UFCW 3000 in Washington State. “It was under his leadership that the company decided to attack its union members by cutting staffing by double-digit percentages, it was under his leadership that the decision was made to invest in the automated Ocado warehouse boondoggle, and it was under his leadership that both companies wasted the last two years and nearly $1 billion pursuing a doomed merger. It’s past time for him to go.”

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December 11, 2024

Press Release UFCW Locals 7, 324, 400, 770, 1564 and 3000

FOR IMMEDIATE RELEASE:
December 11, 2024
Contact: Jenna Thompson, 949.246.1620 jthompson@ufcw324.org

UFCW LOCALS’ STOP THE MERGER COALITION APPLAUDS ALBERTSONS’ DECISION TO TERMINATE MERGER TRANSACTION WITH KROGER

The Coalition Calls on Both Companies to Use Their Unspent Billions to Invest in Workers, Customers and Stores

Buena Park, CA  – Today, UFCW local unions representing more than 100,000 grocery store employees working at Albertsons and Kroger-owned stores in 14 states and the District of Columbia released the following statement regarding Albertson’s decision to terminate their proposed merger with Kroger:

“Following yesterday’s court rulings blocking the proposed Kroger and Albertsons mega-merger, we welcome Albertsons’ decision to terminate the merger transaction, meaning there will be no further court appeals seeking to complete the merger. We encourage the leaders of both Kroger and Albertsons to invest resources in their stores by investing in adequate staffing so customers are better served and workers can safely and effectively operate the stores and stock the shelves. These investments will result in higher sales and improved satisfaction by shoppers and employees alike.

“Now is not the time to waste billions on share buybacks or expanded dividends to Wall Street investors. Albertsons already wasted $4 billion in their premature, massive payout to wealthy shareholders back in January of 2023 when the merger transaction began. Meanwhile, Kroger appears to have wasted more than $1 billion on costs associated with the failed merger transaction itself. Now is the time for Kroger and Albertsons executives to honor their promises to consumers and workers under oath during the trials by investing in lower prices, higher wages, and other investments to improve competitiveness.

“For over 100,000 Kroger and Albertsons workers across the Western United States represented by UFCW locals 7, 324, 770, 1564, and 3000 who are in the midst or about to start negotiating collective bargaining agreements, these billions of dollars will go a long way in resolving problems around staffing, safety, and low wages. It’s also money that could be well spent on cutting prices for customers who have suffered from price gouging over the last several years. This kind of strategic investment is one of the necessary steps to address the underlying inequities and injustices in our nation’s food supply system.”

Comunicado de Prensa de sindicatos de UFCW Locales 7, 324, 400, 770, 1564 y 3000

Coalición de Sindicatos de UFCW en Oposición a la Fusión de Supermercados Aplaude Decisión de Albertsons de Terminar Transacción con Kroger

La Coalición Hace un Llamado a Ambas Empresas a Que Inviertan Miles de Millones Sin Gastar, en Trabajadores, Clientes y Tiendas

Buena Park, CA– Hoy, los sindicatos locales de UFCW que representan a más de 100,000 empleados de supermercados que trabajan en tiendas propiedad de Albertsons y Kroger en 14 estados y el Distrito de Columbia emitieron la siguiente declaración sobre la decisión de Albertson de terminar su propuesta de fusión con Kroger:

“Tras las sentencias judiciales de ayer que bloquearon la mega-fusión propuesta entre Kroger y Albertsons, recibimos con satisfacción la decisión de Albertsons de poner fin a la operación de fusión, lo que significa que no habrá más apelaciones judiciales para intentar completar la fusión. Exhortamos a los directivos de Kroger y Albertsons a que inviertan recursos en sus tiendas invirtiendo en suficiente personal para que los clientes estén mejor atendidos y los trabajadores puedan operar las tiendas y abastecer los estantes de forma segura y eficaz. Estas inversiones se traducirán en mayores ventas y una mayor satisfacción tanto de los compradores como de los empleados.

“Ahora no es el momento de desperdiciar miles de millones de dólares en recompras de acciones o dividendos ampliados para los inversores de Wall Street. Albertsons ya desperdició 4,000 millones de dólares en su pago masivo y prematuro a los accionistas ricos en enero de 2023, cuando comenzó la transacción de la planeada fusión. Mientras tanto, Kroger parece haber desperdiciado más de 1,000 millones de dólares en costos asociados con la propia transacción de la fallida fusión. Ahora es el momento de que los ejecutivos de Kroger y Albertsons cumplan las promesas a los consumidores y trabajadores bajo juramento durante los juicios, al invertir en precios más bajos, salarios más altos y otras inversiones para mejorar la competitividad.

“Para más de 100,000 trabajadores de Kroger y Albertsons en todo el oeste de Estados Unidos, representados por las uniones del sindicato UFCW, Locales 7, 324, 770,1564 y 3000, que están en medio o a punto de comenzar a negociar contratos de negociación colectiva, estos miles de millones de dólares serán de gran ayuda para resolver los problemas relacionados con la dotación de personal, la seguridad y los bajos salarios. También es dinero que podría gastarse bien en reducir los precios para los clientes que han sufrido la especulación de precios durante los últimos años. Este tipo de inversión estratégica es uno de los pasos necesarios para abordar las desigualdades e injusticias subyacentes en el sistema de suministro de alimentos de nuestro país.”

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December 10, 2024

After our 2-year long effort to halt the proposed mega-merger of Kroger and Albertsons because of the threat it poses to workers and our customers, today we celebrate the Federal Trade Commission’s and the Washington State Attorney General’s successful lawsuits to halt the merger. These decisions are a huge win for tens of thousands of grocery store workers and millions of customers across the nation. 

“It’s time for these grocery store companies to get back to what matters most – investing in and hiring more workers to address staffing shortages, improving our stores and the customer experience, and serving our communities.” – Erlene Molina, front end leader at Ralphs in Laguna Hills.

“We want to show our appreciation to the Federal Trade Commission, and the Attorneys General from Arizona, California, District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming who joined the Commission’s federal lawsuit, for taking this case on. We also want to applaud the thousands of unionized workers and shoppers and community organizations who have stood up time and again, and said ‘No Grocery Merger’ since October of 2022.” – Andrea Zinder, president, UFCW Local 324

This is an important legal win for consumers who would have seen one of the largest mergers in history that threatened monopoly or near monopoly in many markets and potential store closures in communities already grappling with food access. It is also a legal win for unionized workers to protect our right to collective bargaining by not allowing a single employer to take away the negotiation leverage of the workers if the two largest unionized retail grocery chains had been allowed to consolidate into one.

What’s next:

As for the federal case, this could be the end of the debate and the companies could do the right thing and drop this proposal that was a bad idea even before they announced it two years ago. That said, the companies could decide to appeal this decision. Additionally, we are also awaiting the decision from a lawsuit filed in the state of Colorado. 

You, the workers in the stores, have been central to the opposition of the proposed merger, took action, spoke out, and shared your concerns. Our Stop the Merger Coalition of UFCW locals 7, 324, 400, 770, 1564 and 3000 have been leading this fight for 24 months and helped build the national coalition that includes over 100 local, regional and national organizations. We also are indebted to the legal work of the Federal Trade Commission, and the Attorneys General from Arizona, California, District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming who joined the Commission’s federal lawsuit as well as the Washington Attorney General.

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UFCW LOCALS STOP THE MERGER COALITION REACTS TO FEDERAL JUDGE GRANTING PRELIMINARY INJUNCTION TO BLOCK KROGER AND ALBERTSONS’ PROPOSED MEGA-MERGER

King County Washington State Court Judge Also Issues Ruling Blocking the Proposed Mega-Merger

Today, UFCW local unions representing more than 100,000 grocery store employees working at Albertsons and Kroger-owned stores in 14 states and the District of Columbia released the following statement applauding the decisions by both a Federal Judge and a King County Judge in Washington state to reject the mega-merger of Kroger and Albertsons:

“The well-reasoned decisions today by both Courts make plain what union grocery workers have known all along – this mega-merger would be bad for workers who deserve a workplace where they can be paid well for their labor, be safe and be respected. It would be disastrous for shoppers who deserve competition that leads to better choices and lower prices. The merger would be detrimental to our communities, would harm farmers and suppliers who deserve a healthy balance to negotiate fair prices for their hard work. Instead, the proposed merger would create an out-of-balance system that drives up prices, drives out competition, and drives down wages and safety standards.

“We call on Kroger and Albertsons executives to abandon this misguided merger and turn their focus back where it belongs: operating grocery stores. They should redirect the billions of dollars that had been earmarked to pay off Albertsons’ shareholders to instead re-invest in our stores.  Investing in better staffing to improve customer service, reducing long lines and out-of-stocks, and fixing the broken equipment that our members are forced to work with every day would allow Kroger and Albertsons to compete and grow market share and create lasting value for long-term shareholders, while meeting the needs of workers and consumers.” 

While there has not yet been a decision in a third case in Colorado, these two decisions to block the merger today are very significant.

The group of UFCW local unions (UFCW 7, 324, 400, 770, 1564 and 3000) lead the Stop the Merger coalition of more than 100 organizations opposed to the proposed merger of Kroger and Albertsons since day one because it would have resulted in lost jobs, closed stores, food deserts, and higher prices with reduced food choices – all of which have been a death-knell for workers, consumers, and entire communities.

December 5, 2024

The judge in the Seattle, WA case against the Kroger-Albertsons merger plans to issue a decision on Tuesday at 1:30 PM. Our Stop the Merger coalition of UFCW locals 7, 324, 400, 770, 1564 and 3000 will be closely monitoring these developments and plan to immediately respond to a decision when it is announced. We continue to believe that all three cases against the proposed merger are very strong and will likely prevail.

November 21, 2024

Update on Proposed Grocery Mega-Merger of Kroger and Albertsons and our Ongoing Opposition

Since it was first announced in October of 2022, our coalition of UFCW local unions, and what has grown to over 100 organizations, have opposed the proposed mega-merger of Kroger and Albertsons. The main reasons for the opposition are the dramatic and negative risks the proposed merger poses to workers, shoppers and community – tens of thousands of job losses, hundreds of store closures, higher prices, food and pharmacy deserts, reduced consumer choice, impact on workers’ collective bargaining leverage and more.

For over a year the opposition grew. Press conferences, a US Senate hearing, meetings with state and federal regulators, hundreds of TV, newspaper and radio stories, actions by workers at their stores, and much more. Many months of investigation led to a series of lawsuits being filed in early 2024.

Three Lawsuits That Started in Early 2024 are Still in Motion

On January 15, 2024, The Attorney General of Washington State filed a lawsuit to block the proposed merger. On February 14, 2024, the Attorney General of the State of Colorado filed a lawsuit to block the proposed merger. On February 26, 2024, the Federal Trade Commission (FTC) filed a lawsuit in federal court in Oregon to block the proposed merger and nine Attorneys General (Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming) joined that federal lawsuit. These legal actions went to trial in August, September and October of 2024. As of today, there has yet to be a decision by the respective judges, but it is expected that decisions could come at any time.

Companies’ Empty Promises Exposed at Trials

Throughout the trials, claims the companies had been making, and continue to make publicly, were debunked. Big promises made in press releases changed under cross-examination and oath. It became clear that these claims were nothing but empty promises. Stores could indeed be closed after a merger. Workers could indeed be laid off after a merger. Prices may not actually go down after a merger. None of these claims, repeated over and over again by the companies, were actually legally enforceable.

Outcome of Cases Still Unknown

It is also widely believed that a successful block of the proposed merger at any of these three trials could be likely. While there remain many unknowns, including the impact of the recent election, one thing is for sure: the merger is far from a done deal. Many financial analysts see the ongoing value of Albertsons stock hovering around $19 a share as an indication from the market that most investors see the merger as more likely to fail. Whenever a decision is announced, our coalition plans to issue a same-day statement.

The large Stop the Merger coalition (www.nogrocerymerger.com), which the UFCW locals 7, 324, 400, 770, 1564 and 3000 helped create and are leading, is made up of over 100 state and national organizations from consumer protection, food security, producers, and many others.

Virtual Town Hall Coming Soon – Stay Tuned

We are planning to hold a national on-line virtual town hall for grocery store workers, shoppers and members of the media soon to discuss the latest updates. Invites will be sent out in advance as well as posted on the nogrocerymerger website.

October 28, 2024

September 13, 2024

We Continue Our Fight Against the Kroger/Albertsons Merger as the FTC Trial Enters Final Week, More Trials to Follow

UFCW 324 members’ rally was covered on ABC 7 in LA.

Dear grocery store members,

Since the trial of the Federal Trade Commission’s lawsuit to stop the proposed merger between Kroger and Albertsons began on August 26, workers have been at the courthouse, talking to the media, and talking to customers about how damaging this would be for workers, customers, and our communities.

We’ve been doing this work for nearly two years and we’ll continue to do it until we finally put a stop to this disastrous merger.

The federal court case is expected to conclude on Tuesday, September 17, and the judge could make a decision on whether or not to approve the FTC’s request for what is called a “Preliminary Injunction” as early as the first week of October. If the injunction is granted, the merger would be put on hold until after a full court case on the merits of the merger is done.

Meanwhile, on Monday, September 16, the Washington State Attorney General’s lawsuit to block the merger will begin its trial in Seattle. The Colorado Attorney General’s lawsuit to block the merger is scheduled to start on September 30.

The outspoken work of grocery store members and our community partners, as well as many enforcement agencies like the FTC and Attorneys General, have all been central to the successful efforts so far to stop the proposed mega-merger of Kroger and Albertsons.

Kroger’s Q2 Earnings Call

Kroger held its 2nd Quarter Earnings call on Thursday, September 12, and it showed what we’ve been saying all along: Kroger is doing just fine, and doesn’t need this merger to compete. Same store sales were up 1.2% (higher than expected) and the company pointed to higher online sales and increased loyalty households as drivers of stronger sales and growing private label brands as a driver of increased profitability.

Notably, these areas—ecommerce capacity, customer loyalty and private label manufacturing—are ones that C&S Wholesale Grocery (the proposed buyer of 579 divested stores if a merger were allowed) lacks, underscoring concerns that C&S would not be able to operate those stores in a sustainable way. Kroger also discussed strong profits in the pharmacy sector and acknowledged pharmacies as a leading cause of loyalty. We’ve pointed out time and time again that C&S has little to no experience managing pharmacies that are a lifeline to our communities.

Also of note, company officials claimed that shrink (the loss from theft or other causes) has been improving, though is still elevated, and that OSHA incident rates are currently at record lows. Members, who actually work in the stores, paint a very different picture of understaffed stores with high rates of shoplifting rates and significant health and safety risks.

In the News

UFCW Locals 7, 324, 400, 770, 1564, and 3000 have held press conferences, store actions, webinars and interviews to raise our concerns to the public through more than a thousand media stories from coast to coast since the very first day Kroger and Albertsons announced their proposed plan to merger.  Time and again grocery store workers, sharing their experiences, have proven to be a critical part of those news stories. Most recently, several stories around the FTC trial have been noteworthy:

• Stop the Merger Rally of UFCW 324 Highlighted on ABC 7 in California
• NPR – All things considered – Shoppers and workers that stand to be affected by a Kroger-Albertsons merger weigh in
• New York Times: A Trial Asks: If Grocery Rivals Merge, Do Workers Suffer?-Front page of the Business Section
• Reuters: Surging grocery prices in focus as US tries to stop Kroger deal
• AP: Kroger and Albertsons defend merger plan in federal court against US regulators’ objections
• Cincinnati Enquirer: Deleted texts, grocery prices: CEOs testify in Kroger-Albertsons merger case

You can find more of the most recent news coverage on the Stop the Merger website news page here.

Protecting the jobs and collective bargaining strength of union workers and keeping choice and price competition for our customers are key reasons for our long-standing and loud opposition to the proposed merger.

We recently launched a Stop the Merger Customer Petition to continue to build public support that has already garnered thousands of signatures! Please help spread the word about our petition by sharing www.nogrocerymerger.com/petition.

We hear from customers all over the country that Kroger and Albertsons’ proposed mega-merger threatens our communities with store closures, food and pharmacy deserts, thousands of laid-off unionized grocery store workers, and higher prices.

You can take action by encouraging your organizational members, family members, fellow shoppers, friends, and others in the community to sign the petition to show Kroger and Albertsons that they are opposed to this disastrous proposal.

Sign and share the petition at nogrocerymerger.com/petition

In solidarity, the Stop the Merger Coalition

August 26, 2024

Grocery Store Workers’ Strong Opposition to Proposed Kroger-Albertsons Merger Resonates on Courthouse Steps Ahead of FTC hearing

Portland, OR – The Stop the Merger Coalition led by UFCW Locals 7, 324, 400, 770, 1564 and 3000 today held a press conference immediately prior to the much-anticipated Federal Court hearings of the Federal Trade Commission’s challenge to block the proposed mega-merger of Kroger and Albertsons. Workers and leaders from California, Washington and Colorado, representing over 100,000 union grocery store members, reiterated their opposition to the anti-competitive, anti-worker and anti-community scheme.

“We’re fighting back because we know that the proposed mega-merger between Kroger and Albertsons would likely lead to job losses, store closures, pharmacy and food deserts, and higher prices, which would harm working families in both rural and urban communities across the country,” said Kim Cordova, UFCW International Vice President and President of Local 7, representing workers in Colorado and Wyoming. “Kroger and Albertsons claim the merger is necessary to compete with Walmart and Amazon, but their true goal is to consolidate power and increase profits at the expense of workers and customers.”

Jessica Crowley, a UFCW Local 770 member and staff pharmacist at an Albertsons-owned Pavilions Pharmacy in Los Angeles, California, said, “Competition is essential for maintaining medication access, especially during drug shortages. Let’s be clear: this mega-merger will negatively impact retail workers, smaller suppliers, independent chains, and communities already facing challenges with food and medication access.”

Carol McMillian, a Kroger-owned King Soopers Bakery Manager from Local 7 said, “Growing up, we always thought of working at a grocery store as a secure, good-paying job that could support a family like mine. I spent 11 years working my way up to become a Safeway Bakery Manager, but after the Albertsons Safeway merger in 2015, I felt like my job was at stake and left to work at King Soopers instead to protect myself as a single mom. But here we are again – facing yet another merger creating uncertainty about our jobs and our livelihoods.”

Kyong Barry, who works at an Albertsons’ Safeway store outside Seattle and has served on her union’s contract negotiations team many times added, “I am proud that our local unions have stood up and raised our concerns about this proposed merger from the very beginning. Our ability as unionized workers to negotiate a better contract is at stake with this merger. It must be stopped.”

The Federal Trade Commission’s case challenging the merger, joined by the Attorneys General of Arizona, California, District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming, began today in federal court in Portland, Oregon, and is expected to last at least two weeks. A second case by the Washington State Attorney General is scheduled to be heard starting on September 16, and a third case brought by the Attorney General of Colorado is scheduled to be heard starting on September 30.

The Stop the Merger Coalition recently launched a customer petition ahead of the hearings, which in just a short time has already collected thousands of signatures of concerned customers telling Kroger and Albertsons to stop the merger that threatens our communities with store closures, food and pharmacy deserts, thousands of laid-off unionized grocery store workers, and higher prices. Recent media reports have indicated that Kroger and Albertsons have already spent over $864,000,000 on the merger process.

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About Stop the Merger

UFCW locals 7, 324, 400, 770, 1564 and 3000 lead the Stop the Merger Coalition, including 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, go to www.NoGroceryMerger.com.

August 1, 2024

Kroger and Albertsons announced their proposed $25 billion mega-merger almost two years ago, and the legal challenges brought by the FTC and states of Colorado and Washington will soon be heard in court.

The proposed merger threatens all of us with store closures, food and pharmacy deserts, thousands of laid-off unionized grocery store workers, and higher prices. In a time of record food prices and skyrocketing corporate profits, we can’t afford to lose any more grocery stores in our communities.

Customers deserve:

• Access to fresh and healthy food choices
• Access to pharmacies and medication
• Stable food prices to enable us to feed our families
• Good-paying union jobs to sustain our communities

Sign our petition to Kroger and Albertsons and tell them to stop the merger and please share with your networks!

Petition Link: www.nogrocerymerger.com/petition 

July 25, 2024

Stop the Merger Coalition of UFCW Locals: Update on Colorado Court’s Temporary Injunction Halting Kroger and Albertsons’ Proposed Mega-Merger

For nearly two years our coalition has been standing up and loudly proclaiming what a bad idea this proposed Kroger and Albertsons mega-merger would be because of the harm it would cause to workers, shoppers, and communities. Unfortunately, on many occasions, the employers have acted as if this merger were already a done deal. The reality is that it is not a done deal at all. In fact, there are three separate lawsuits in process to block it.

The lawsuit filed by the Colorado Attorney General led to a ruling today from a Colorado court to temporarily halt the proposed mega-merger and helps to clarify this point – the merger is by no means a done deal. That case is now scheduled to be heard starting on September 30^th.

In addition, there is the Federal Trade Commission’s case challenging the merger, joined by the states Attorneys General of AZ, CA, DC, IL, MD, NV, NM, OR and WY which is scheduled to be heard starting on August 29 in federal court in Oregon. A third case by the Washington State Attorney General is scheduled to be heard starting on September 16 in Washington state.

UFCW locals 7, 324, 400, 770 and 3000 are all part of the Stop the Merger Coalition, including 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. More information on the effort to stop the merger can be found at www.NoGroceryMerger.com.

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July 9, 2024

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

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 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.

New to Zoom? Check out the links below for helpful resources!

Downloading Zoom
Click here to get started on iOS
Click here to get started on Android
Click here to get started on Windows and Mac desktop

Joining a Meeting
Click here for Video Tutorial/Tutoriales en Video

June 6, 2023

UFCW Local 324 Members Instrumental in Moving Policies Bettering Working People’s Lives

UFCW Local 324

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.