Update on Ongoing Efforts to Stop Mega Merger as We Build Collective Strength to Protect and Improve Grocery Store Workers' Jobs

/

Good News on Stopping the Proposed Mega-Merger

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.

What's Next in This Legal Process?

The legal process will likely continue for some time until one of two things happens:

  1. 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:

  1. 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.

What’s Next for Our Grocery Store Companies?

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.

UFCW Local Members Taking Action Together for Stronger Contracts

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.

FAQ - Does Albertsons Need to Sell? No!

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.

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

/

For Immediate Release: February 20, 2024

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

 

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

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

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

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

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

/

For Immediate Release – Wednesday January 24th, 2024

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

Virtual Press Conference. Register HERE in advance

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

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

Who: 

  • Faye Guenther, President, UFCW 3000 (WA)

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

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

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

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

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

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

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

/

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

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

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

/

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

#-#-#

UFCW Local Unions Disappointed by Washington State Supreme Court Ruling to Allow Albertsons Massive $4 Billion Dividend as Part of Proposed Mega Merger

/

UFCW Local Unions React to Washington State Supreme Court Decision on Massive $4 Billion Albertsons Dividend as Part of Proposed Mega Merger

Jointly Issued Press Statement by :
UFCW 3000 of WA & Northern ID
UFCW 400 of MD, DC, VA, WV, KY, OH, & TN
UFCW  7 of CO & WY
UFCW 770 of Southern CA
UFCW 5 of Northern CA
UFCW 324 of Orange County, CA and Southern Los Angeles County
UFCW 367 of South Puget Sound, WA
Teamsters 38 of Snohomish Country, WA

FOR IMMEDIATE RELEASE
January 17, 2023

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

UFCW Local Unions Disappointed by Washington State Supreme Court Ruling to Allow Albertsons Massive $4 Billion Dividend as Part of Proposed Mega Merger

“We are disappointed to see a ruling that favors a small number of ultra-wealthy shareholders over the many thousands of essential workers and millions of Americans who will be left to suffer the consequences of the outright financial looting of Albertsons. Despite this setback that allows the $4 billion dividend to be issued, the delay allowed the United States Senate to scrutinize the dividend payment as well as the mega-merger, and alerted the public to the disastrous consequences if the merger were to go through. We applaud Washington State Attorney General Bob Ferguson and his staff for their efforts fighting to protect our members and the communities we serve. Our unions will not stop working to protect our members and our communities from the harmful impacts of this proposed mega-merger of Kroger and Albertsons. It is now even more important that the Federal Trade Commission take swift and decisive action to block the acquisition.”

Background:

From the first day the proposed merger was announced, UFCW Local 5, UFCW Local 7, UFCW Local 324, UFCW Local 367, UFCW Local 400, UFCW Local 770, UFCW Local 1442, UFCW Local 3000 and Teamsters 38 have been taking action to intervene and stop this devastating deal. 

On November 1st, Washington state Attorney General Bob Ferguson filed a lawsuit in state court seeking to stop the payout and a temporary restraining order was granted through December 9th.

On Tuesday November 29 the US Senate Judiciary Subcommittee held a hearing to scrutinize the proposed Kroger/Albertsons mega merger, along with an alarming, up to $4 billion “special dividend” announced by Albertsons in connection with the merger agreement. In a letter to the Federal Trade Commission urging the agency to intervene, more than two dozen antitrust experts and local unions representing Albertsons’ workers decried the payout as “nothing less than an out-and-out looting of the company” and a brazen attempt to destabilize the company ahead of regulatory review of the merger. 

On December 9th, the Superior Court Judge in King County Washington ruled against issuing a preliminary injunction, but delayed the effect of the decision until December 19th to allow time for an appeal by the WA AG to be considered by the State Supreme Court. On December 16th, the WA State Supreme Court issued a ruling granting the State AG’s Injunctive Relief and extended the Temporary Restraining Order on the Albertsons dividend until further order of the court.

# # #

Stop the Kroger Albertsons Merger and the Cash Grab - Add your name!

/

Stop the Kroger Albertsons Merger and the Cash Grab - Add your name!

We would like to send an email to the FTC’s AntiTrust division and add your name to the growing list endorsing the letter we sent on 11/3 expressing concern about this proposed merger.

On November 3, 26 organizations, including UFCW 3000, wrote a formal letter to the Federal Trade Commission raising serious concerns regarding the proposed merger of Kroger and Albertsons. That letter concluded with the following:

 “The bottom line is that this proposed merger is bad for workers, bad for consumers, bad for communities, bad for the economy—indeed, bad for everyone not associated with Cerberus Capital Management or owning shares in these two companies. We urge you to take immediate action to stop the special dividend payment and block this merger altogether.”

Essential Grocery Store Workers’ Unions Issue Joint Statement in Response to Proposed Kroger/Albertsons Merger

/

UFCW 7 - UFCW 324 - UFCW 367 - UFCW 770 - Teamsters 38 - UFCW 3000

FOR IMMEDIATE RELEASE: October 13, 2022
Contact: Tom Geiger, 206-604-3421

Proposed Kroger/Albertsons Merger Would Be Devastating for Essential Workers and Customers 

Seattle, WA -  Today it was reported that grocery store giant Kroger could announce a deal this week to buy rival grocery store company Albertsons, resulting in a potential merger that would significantly harm local grocery store industries, essential grocery store workers, and customers across the western US from Southern California to the Canadian border to Colorado.

“The proposed merger of these two grocery giants is devastating for workers and consumers alike and must be stopped. Just as our UFCW workers stood together to negotiate landmark new contracts with both Kroger and Albertsons/Safeway within the last year across the western US, we will stand united to fight for access to nutritious food, a safe shopping experiences, and investments in good jobs in our communities. Essential UFCW grocery store workers emerged stronger from the COVID-19 pandemic, winning improved protections against the virus, store violence and other threats. Standing together, we know our voices are stronger than the corporations’ anti-worker rhetoric,” Faye Guenther, President of UFCW 3000.

This proposed merger of two of the largest grocery companies in the nation will no doubt create a monopoly in the grocery industry for many communities, with one company owning a $47 billion market share.

UFCW’s members have been a leading national voice on enforcing federal and state antitrust laws as well as forwarding the values of protecting a fair marketplace that prevents corporations from using monopoly power to exploit customers and workers. We are asking the appropriate administrative and elected officials to step in and stop this merger and protect workers and consumers.

# # #

Union Members of Approve Historic Merger – Creating the new UFCW 3000

/

Union Members of UFCW 1439 and UFCW 21 Vote to Approve Historic Merger – Building Power for Essential Workers and Creating the New UFCW 3000

In December, the Boards of Directors of UFCW 21 and UFCW 1439 voted to approve a merger agreement and to send this question of a merger to the overall membership. In January the members of UFCW 1439, who work largely in grocery stores, food processing and other industries in eastern Washington, northeast Oregon and northern Idaho, held their merger votes. Then in February, the membership of UFCW 21, made up of grocery and retail store workers in western Washington as well as health care workers and others all across the state, held their merger votes. The merger was approved by both memberships by at least 95%.
 
“Now that we are united, we have over 50,000 workers’ voices across the state coming together as one, we have more resources to win better contracts and enforce those contracts. We also have over $33 million in our Strike and Defense Fund and over 110 staff to bargain and enforce our contracts,” said Kyong Barry, a Front End Supervisor at Albertsons in South Auburn, and Derek Roybal, a Cardiac Cath-Lab Technologist at Providence Sacred Heart in Spokane. They are both leaders in UFCW 21.
 
Their enthusiasm was shared by Shannon Corrick, a UFCW 1439 member who works in the Cheney Safeway doing File Maintenance. She summed up the sentiment of many members when stating, “The corporations we work for are getting bigger all the time and they treated us very poorly during COVID. This merger makes us a much bigger union so we can take them on, and win better wages and safer workplaces. Get more control over our lives.”
 
Benefits of the merger include:

  • Building power across industries like grocery stores, meatcutters, retail, healthcare, packing and processing, and others to help win better contracts, and organize more workplaces where workers want a union but don’t yet have one.

  • Doubling the size of our collective membership in Eastern and Central Washington Counties.

  • UFCW health care members and retail grocery store members acting together in counties in western Washington have already made great strides together – in places like Kitsap and Snohomish counties. The merger will expand that kind of solidarity to Spokane, Tri-Cities, Wenatchee and many other areas in the central and eastern parts of the state.

  • The newly merged union will have an expanding Member Resource Center hotline where members can call to get quick answers to questions including on weekends and late-night hours. We will also have a new Member Education Department and invest in Workforce Development and Training.

  • The newly created UFCW 3000 will be the largest UFCW local in the country.

The merger will go into effect on March 1, 2022.