On December 19, the Superior Court of Thurston County ruled in favor of the Department of Labor and Industries (L&I), allowing it to enforce hospital meal and rest break rules.
Read MoreUFCW Locals 7, 324, 770, 1564 and 3000
For Immediate Release: December 13, 2024 - 9 AM ET/6 AM PT
Contact: Tom Geiger, UFCW 3000, 206-604-3421
Seattle, WA - 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 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.
What could $7.5 billion buy?
New stores: 280
Store remodels: 3,268*
Discounts per loyal household: $158.13
New FTEs: 125,691
New FTEs per store: 46
New FTE's per store for 3 yrs: 15.4
* 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 local union 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.”
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.
Read More“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…”
Read MoreAs we navigate these adverse weather effects, please remember there are resources and rights through our union and through our communities that can help.
Read MoreFor 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.
Read MoreWorkers organizing each other in our communities and workplaces for a better future and taking on the politics of greed and the self-interest of the wealthy. We know that working people need political leadership that does more than just defend against things becoming worse.
Read MoreWe are hopeful that the outcome from this federal case will stop the proposed merger, and we will continue to watch and comment on the state cases in Washington, which began yesterday in Seattle, and Colorado, scheduled to begin on September 30 in Denver.
Read MoreWe held a UFCW Locals Stop the Merger coalition press conference on the courthouse steps an hour prior to the first day of the FTC case and our concerns were aired in news coverage from coast to coast.
Read MoreThe 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.
Read MoreUFCW 3000 strongly encourages Vice President Kamala Harris select Governor Tim Walz as her running mate for Vice President in 2024. Governor Walz's leadership has been a beacon of progress for working people, and we believe he is the best choice to continue advancing the interests of workers across the nation.
Read MoreThe 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 30th.
Read More"This proposed merger was a bad idea from the get-go and I'm glad our Washington State Attorney General is one of many going to court to stop it,” said Brendan Gallagher a meat wrapper at a Kroger-owned QFC in Seattle and member of UFCW 3000. “It's bad for our customers and bad for us as grocery store workers because it would raise prices, close stores, and lay off workers. These companies should do just the opposite: stop the merger, lower prices, hire more staff and open more stores."
Read MoreStop the Merger Coalition of UFCW Locals to Hold Press Briefing
Read MoreUFCW 7, UFCW 324, UFCW 400, UFCW 770 and UFCW 3000
UFCW Locals issue statement in response to Kroger and Albertsons release of store divestiture list
July 9, 2024 – Today, a coalition of United Food & Commercial Workers local unions made the following statement after Kroger and Albertsons released to the public a specific list of stores the companies would plan to divest to C&S Wholesale Grocers if their proposed mega-merger of the two companies were approved:
“Today’s announcement changes nothing. The merger is not a done deal, far from it. We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago -- because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal. The merger proposal was rejected in January and February by the Attorneys General from the states of Colorado and Washington and the Federal Trade Commission. We applaud their actions. They have been in possession of this proposed divestiture list, made public today by the companies, for months and that did not change their opposition to the proposed merger. These legal challenges to the proposed merger are moving forward with hearings beginning at the end of July and scheduled to go through September.”
Each year we gather together with fellow UFCW 3000 members across the region for summer days at the park, an opportunity for some union-sponsored family fun and a great chance to meet and talk with other union members.
This year we're excited to add a new summer event for members, supporting our longtime community partner Washington State Coalition Against Domestic Violence: Game Day for Domestic Violence Prevention at T-Mobile Park!
Refuse to Abuse Game Day is Sunday, June 16, and for every ticket sold our longtime community partner the Washington State Coalition Against Domestic Violence (WSCADV) receives an $18 donation and attendees get a free Mariners-themed Refuse to Abuse® Dri-fit T-shirt. Tickets are View Level for the Mariners vs. Texas Rangers game and cost $35. WSCADV has shown up for our members in many ways over the years and we look forward to this fundraiser and opportunity to share the belief that domestic violence is 100% preventable!
In addition, our other summer fun events have been popular each year and continue to be a great way to celebrate with family and union friends:
all day access to Silverwood Theme Park and Boulder Beach Water Park
all you can eat buffet picnic-style lunch @ the banquet pavilion (starting at 12pm noon)
unlimited drink refill wristband
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
As you may have heard, on February 26, after a massive 16-month effort by our collective of UFCW Local unions and others, we accomplished an important goal of getting the Federal Trade Commission (FTC) to officially file a lawsuit to stop the proposed mega-merger of Kroger and Albertsons. Nine states’ Attorneys General joined that FTC legal challenge. The Attorneys General of the states of Washington and Colorado also filed separate lawsuits on January 15 and February 14, respectively.
This is very good news in our campaign to protect workers, shoppers, and the community from the negative impacts that would result if this proposed merger were allowed. But the effort to stop the merger still has a way to go.
The legal process will likely continue for some time until one of two things happens:
- The Federal Judge in Portland, OR, has set a date for August 26, 2024, for the trial to begin on the FTC case. The WA and CO trials can move ahead separately, but they could be coordinated with others as well. Those trials could continue until an outcome is determined.
Or:
- The Merger Agreement of Kroger and Albertsons has an “outside date” of mid-October 2024 (two years after when it was announced) after which the companies can simply abandon the deal without paying any financial penalty to the other party, so it is also possible that Kroger and Albertsons will simply withdraw their proposed merger.
It’s time for Kroger and Albertsons to invest in grocery store workers, our customers, and our communities instead of wasting years and billions of dollars on a failed merger proposal. These companies have been doing very well and have made billions of dollars in profit in recent years. They should be making more investments in better-staffed stores, in higher retention of workers with better pay, benefits, and training, and in lower food prices for shoppers. These investments will result in Kroger and Albertsons becoming stronger companies.
In addition to fighting the proposed mega-merger that would cause harm to thousands of grocery store workers and millions of customers, our collective group of local UFCWs is also taking action to affirmatively improve our contracts, organize more unionized grocery stores, and more.
Local 770+324 held a Rally for Food 4 Less Workers starting Contract in Southern California. Here is a video from the event as well as local ABC 7 TV News coverage from Los Angeles.
UFCW Local 7 and 770 Members featured in national In These Times article: “The Mega Grocery Merger That Would Pay the Price For, The Kroger-Albertsons merger is a threat to grocery workers everywhere. Let’s join the fight to stop it.”
UFCW Local 5 members at the Kroger-owned Foods Co recently ratified a new contract that includes some major improvements including: $4.50 wage increase over term of contract for top rate, large ratification bonus, an increase in all wage progressions, and a reduced amount of time to reach the experienced rate for all purpose clerks.
Kroger workers vote to join Local 3000 in central Washington and hold Informational Pickets in eastern Washington city of Spokane for a stronger contract. KHQ 6 TV Spokane, WA covered the action for local news.
After the merger is stopped, some have said that Albertsons will just be sold to some other company. That’s just not true. Before the merger proposal, a super-majority of Albertsons’ stock was owned by six massive private equity investors who wanted to sell their shares to a single buyer. But during the past 24 months, those large investors have sold the majority of their shares in Albertsons, and we expect they will continue to sell their remaining shares on the NY Stock Exchange after the merger is blocked.
The alternative—trying to sell Albertsons in whole or in part to a different buyer—would be very unlikely. Court documents show that in the summer of 2022, there were no other bidders aside from Kroger, so a new buyer would likely offer a significantly lower value for the company. Based on Albertsons’ current stock price (which is still significantly below the Kroger buyout price), the company’s total enterprise value is approximately $20 billion, or nearly $9 million per store. To put that in perspective, the current divestiture plan to C&S Wholesale proposes to pay about half of that amount. So, selling to C&S or to anyone else at that price would destroy significant value for Albertsons shareholders. And again, the company is doing well financially, and there is no need to sell. Recent quarterly reports show Albertsons is doing even better than Kroger.
Our union came into 2023 with some great successes, like winning a "best in a generation" contract for 25,000 Western Washington grocery store workers, but we also faced some huge challenges. Health care workers continued to be crushed by severe staffing shortages at hospitals that threatened both patient and caregiver safety alike, and at the same time, we had just learned of a proposed mega-merger between Kroger and Albertsons that threatened layoffs, store closures, and higher prices. 2023 was shaping up to be a big year.
UFCW 3000 members working in health care, grocery stores, food processing plants, retail businesses, and many other industries are fundamentally linked to the communities we work and live in. We are the essential workers that our communities depend on every day. That is why the challenges we face, like ferocious corporate greed that under-staffs us to make huge record profits, or the extreme and growing inequality between the wealthiest one percent and everyday working people are not just a problem for our workplaces —they are problems for our entire community. Greed and inequality are also underlying and insidious drivers of systemic racism and sexism —pitting us against each other, while an economic appetite of extraction and churn threatens the future of humanity itself. These toxic realities of greed and inequity also threaten our most cherished aspirations of democracy, freedom, and a better life for the next generation.
If together, as organized workers and communities, we want to fight back and build a better future, we are going to have to face these challenges head-on. While we recognize we still have a lot of problems and a lot of work to do to make things better in 2024, we also think it is important to celebrate the fact that we have been a leader in our region and around the nation —attacking these problems, making an impact, and being part of the movement to turn things around for the better.
Here’s a snapshot of some of our accomplishments from 2023, our wins as a collective union of workers in action.
We won important reforms at our UFCW International Convention and began the much-needed campaign for greater reforms in the future. Learn more about our local's fight to bring democracy to the UFCW >>
We joined the 'year of strikes' when thousands of UFCW 3000 members voted to authorize ULP strikes: The nurses at Providence Everett and workers at Macy’s in Southcenter, Alderwood, and Bellingham went on strike in 2023. Both strikes were joined by hundreds of community supporters while thousands signed petitions in support of these striking workers.
Providence strike recap video >>
Macy's strike recap video >>
We passed a Safer Staffing Law! Working in a first of its kind in the region, a coalition with SEIU Healthcare1199NW, WSNA and UFCW 3000 worked to pass the historic ESSB 5236 Safe Staffing legislation that will take steps towards ensuring safer hospital staffing levels across WA. Learn more about the Safe Staffing legislation >>
We opened a new Union Hall in Des Moines! After completing the sale of our flagship office of over 20 years in Seattle to the Seattle Labor Temple, we held an open house in our brand new union hall in Des Moines. This new location will save money, be more accessible to members (it is located on the new Light Rail route), and be a gathering space for members. Learn more about UFCW 3000 office locations >>
Our elected Executive Board made of rank-and-file members adopted a powerful new 5-year strategic plan to guide our union and prioritize our work until 2028. Learn more about the Strategic Five Year Plan >>
Our Executive Board also helped begin a national call from labor unions for a ceasefire in Gaza. Learn more about the petition for peace >>
Had fun! Thousands of members and their families attended UFCW 3000’s summer events at Wild Waves in Federal Way, WA, and Silverwood in Idaho. Save the date for the next Summer Picnics at the Park: Silverwood is August 6 and Wild Waves is August 8.
Union member bargaining teams won 8 first-time contracts and ratified 30 new contracts with higher wages, improved benefits and better working conditions.
Held off the grocery store mega-merger by being instrumental in building a national coalition of unions that includes UFCW locals 5, 7, 324, 400, 770, 1564 and 3000 and community groups including 55 from our own region to oppose the Kroger and Albertsons mega-merger. We have successfully lobbied —through data, testimony, and evidence to the Federal Trade Commission (FTC) who has recently ruled in our favor and decided to reject this proposed mega-merger! Learn more about efforts to stop the mega-merger >>
In 2023 we organized hundreds of new members! New organizing wins from determined organizing committees both big and small resulted in hundreds of new members joining our union. Welcome Ferry County, Downtown Dog Lounge, REI Bellingham, MultiCare Auburn Pros, and Fred Meyer Port Orchard General Merchandise, and our first Cannabis producer contract at Mfused, who won a standard-setting contract in the cannabis industry.
People powered politics in action: Our member-led endorsement committee interviewed 57 candidates for local office. 68 members participated in our Political Action Advisory Committee and were able to help win a new just cause standard for grocery store workers around retail theft. Learn more about our People-Powered Politics agenda >>
The Essential Workers Organizing Academy is up and running! The program was broken up into three distinct phases: training, internal organizing, and external organizing/preparing for strikes. Apprentice organizers supported on campaigns that included Macy’s, Bartell Drugs, Fred Meyer, PCC, Providence Everett, as well as political and community projects. Congratulation to the first EWOA graduating class of 2023! Learn more about EWOA >>
Enforced our rights: Together as members, stewards, and union Reps we work hard to ensure members’ rights are protected and that the process is transparent, and management is held accountable to our members, our contract, and the law. In 2023 we had to file 182 grievances against management that could not be resolved at the worksite level.
Got the training to empower ourselves: Over 300 members participated in a union training in 2023. These trainings included topics like Weingarten training and enforcement, Leaders in Action, New Member Meetings, Grievance Training, Retirement Seminars, and more. Learn more about upcoming union trainings >>
No union should be an island. We support others in their struggles and UFCW 3000 attended strikes, showed solidarity and gave other support for Starbucks Workers United in Washington and around the nation.
We are the Union. The members of UFCW 3000 are over 50,000 members working in grocery, retail, health care, meat packing, cannabis, & other industries across Washington state, north-east Oregon, and northern Idaho. UFCW 3000 is a chartered member of UFCW International with over 1.4 million workers in North America.
To build a powerful Union that fights for economic, political and social justice in our workplaces and in our communities.
