Colorado Attorney General Weiser’s Team Has Done Excellent Job in Trial to Stop Kroger/Albertsons Merger Proposal
For Immediate Release
December 11, 2024
Contact: Kim Cordova | kcordova@ufcw7.com | 303-425-0897 ext. 402
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
Denver, CO (December 11, 2024) – 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.”
Meanwhile, here in Colorado, union grocery workers are at the bargaining table with King Soopers, City Market, Safeway, and Albertsons, as the contract negotiated at the conclusion of the 2022 strike is set to expire in early January 2025. UFCW Local 7 President, Kim Cordova, stated “Now that the proposed anti-competitive merger is behind us, it’s time for the companies to get serious about fixing the problems that have developed while executives were busy wasting money on the merger. Understaffing within the stores is rampant, with too few workers and too few hours, which leads to bare shelves and poor customer service. At the same time, wages and benefits have failed to keep pace with inflation, threatening the stability of our communities. Both of these companies are flush with cash, and now is the time for them to invest seriously in the stores, by increasing staffing, raising wages, and lowering prices.”
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Local 7, is the largest private-sector Union in Colorado and Wyoming. It is affiliated with the United Food and Commercial Workers International Union which represents over 1.3 million workers in the United States and Canada, one of the largest private-sector Unions in North America. UFCW members work in a wide range of industries, including retail food, food processing, agriculture, retail sales, and health care.