In a significant development for the grocery industry, the United Food and Commercial Workers Local 555 (UFCW 555) has withdrawn its endorsement of the proposed merger between Kroger and Albertsons. This decision comes amid ongoing bargaining sessions and concerns regarding wage commitments from Fred Meyer, a subsidiary of Kroger.
The retracted endorsement was first reported by The Oregonian following a meeting between UFCW 555 representatives and officials from Kroger, Fred Meyer, and QFC. UFCW Local 555 Communications Coordinator Miles Eshaia expressed strong dissatisfaction with Kroger’s handling of wage promises, particularly in light of a recent press release from the company stating that “Fred Meyer Delivers on Their Promise to Accelerate Associate Wages.”
Eshaia criticized this statement as “misleading at best,” asserting that the only wage increases Fred Meyer has agreed to were those negotiated by UFCW 555 after a one-day strike in 2021. He highlighted a troubling pattern of the company failing to meet its obligations, stating, “In fact, we were forced to file a federal lawsuit asking the courts to force Fred Meyer to live up to their commitments in the current contracts with UFCW 555.” Consequently, the union declared its opposition to the merger for Oregon, Idaho, and Washington.
The timing of the union’s decision coincides with a legal battle surrounding the merger. A judge is set to consider the Federal Trade Commission’s (FTC) request for a preliminary injunction against the merger on August 26. Earlier this year, a King County judge in Washington ruled that Attorney General Bob Ferguson’s antitrust lawsuit against the merger could move forward after Kroger and Albertsons sought to have the case dismissed.
The proposed merger, valued at $24.6 billion, would see Kroger and Albertsons divest more than 180 stores in Oregon and Washington. Despite the planned sales, a Kroger spokesperson previously indicated that they expect the stores to continue operating under new ownership after the sale.
The merger has faced significant scrutiny, with the FTC filing a lawsuit in February aimed at blocking the deal. This lawsuit is being supported by eight other states and the District of Columbia, reflecting widespread concern about the potential impact on competition and consumer choices in the grocery market alike.
