Governor Signs Worker Protection Bill Championed by UFCW 3000 Grocery Store Workers into Law

OLYMPIA, WA – This morning, Governor Inslee signed into law Senate Bill 6007, a bill intended to protect grocery store workers and communities from the negative impacts of corporate megamergers in the grocery industry. Drafted in response to the news that grocery giants Kroger (owner of Fred Meyer and QFC) and Albertsons/Safeway are threatening to merge into one huge company, ESSB 6007 saw enormous support from local Washington grocery store workers and community allies, who advocated throughout the legislative session for its passage. 

“As I explained to legislators, we’ve already learned the hard way through past grocery chain mergers about the upheaval it causes for workers and shoppers when these chains merge and close or sell off neighborhood grocery stores,” said Yasmin Ashur, a UFCW 3000 member and checker at the Port Orchard Albertsons who testified in support of the bill and was on hand to see the governor sign it today. “We saw it in Port Orchard with the Albertsons/Safeway merger not that long ago. I am so proud to say I stood up with my fellow workers and helped pass legislation that will help protect our jobs.” 

This new legislation puts in place basic guidelines for large grocery stores when they change hands, like in an acquisition or merger, to ensure that essential food workers’ lives and our communities’ access to food and household necessities are not thrown into chaos. It requires public notice of new ownership, a period of job protection or re-hire for eligible current employees, protection of current working conditions and collective bargaining agreements, and mandatory engagement with local government if a merger would cause the closure of a store in an existing food desert. 

“The difference between unemployment caused by a pandemic and job loss caused by corporate buyouts is that the potential harm of a merger is foreseeable,” said Britt Leggett, a UFCW 3000 member and deli clerk at the Fred Meyer in the Ballard neighborhood of Seattle who also testified in support of the bill and attended the bill signing today. “That’s what this legislation seeks to remediate: to help workers keep their jobs and seniority when their stores changes owners. The law also ensures that constituents will be served by grocery workers who they know well, who have the skills to do their jobs, and follow the health rules to keep food safe.” 

Hundreds of grocery store workers with UFCW 3000 across the state sent messages to lawmakers encouraging the passage of SB 6007, and some traveled to Olympia to meet lawmakers in person.  

“It’s a big sacrifice for everyday working people to take time out of their busy lives to try and engage with the local political process,” said Joe Mizrahi, Secretary Treasurer of UFCW 3000. “But being in a union means we can share the load, work together, and make real change that impacts entire industries.” 

Update on Efforts to Oppose the Proposed Kroger + Albertsons Mega-Merger

Our efforts to stop the proposed mega-merger of Kroger and Albertsons reached a major milestone on Monday February 26 when the Federal Trade Commission (FTC) and nine State Attorneys General filed a lawsuit to challenge the merger. UFCW 3000 has been a national leader in opposing the proposed merger since the day it was announced in October of 2022. Since that time, we have been actively working with a core group of other UFCW locals as well as a wide range of over 150 diverse partner organizations across the nation and developed a “No Grocery Merger” coalition.
 
The effort to oppose the merger is not over yet. Kroger and Albertsons have both said they will challenge the lawsuits in court, so we expect it could be many months until an outcome is known. We will keep up the fight. And for right now we will also celebrate this major win in the struggle to protect workers, shoppers, and communities from the greed and over-reach of Kroger and Albertsons.
 
Another example of our effort to protect workers was our recent win on February 22 when we were successful in getting the Washington State Legislature to pass SB 6007 – a new law to provide protections for grocery store workers from the harm that can result when chains merge and the consequences include layoffs and store closures. 
 
For the thousands of members who have acted together – we are making a difference. The actions have included signing petitions, handing out leaflets to customers, raising our voices in local and national news stories, signing in support of our new WA law to protect workers, and so much more. And it shows that when workers and community come together and act as one, we can push back against some of the largest corporations in America.
 
Instead of spending all this time and money on a proposed merger that if allowed to proceed would lead to higher prices, closed stores, lost jobs, a reduced ability for union workers to negotiate strong contracts, and giving away billions to wealthy investors, these companies should be doing the necessary work to provide better wages and working conditions, and making stores safer.

More Detailed  Information:
On Monday February 26, 2024, the Federal Trade Commission (FTC) challenged the proposed mega-merger of Kroger and Albertsons siting concerns about how the merger would harm consumers and workers. Nine State Attorneys General (Arizona, California, District of Columbia, Illinois, Nevada, New Mexico, Oregon and Wyoming) joined the legal action as well. These are above and beyond the two other Attorneys General lawsuits from Washington and Colorado. Your support of the “No Grocery Merger” coalition is an important part of what led to this success. The 150 organizations across the nation who joined together last year to fight this merger was a show of both the power of solidarity and a diverse array of interests.

We remain committed to continue our diligent efforts to defend workers, customers and communities from the devastating harm that would be caused if such a merger were to proceed. And we also look forward to beginning to fix the broken food systems in this nation.

Additional information and past updates

1. FTC Press release: FTC Challenges Kroger’s Acquisition of Albertsons. Largest supermarket merger in U.S. history will eliminate competition and raise grocery prices for millions of Americans, while harming tens of thousands of workers, FTC alleges

2. FTC Complaint: Kroger's/Albertsons: Administrative Part 3 Complaint (Public) (ftc.gov)

3. Our press release including link to coalition partners and highlights of some of the activities over past 16 months to fight the proposed merger.

FTC Rejects Kroger - Albertsons Proposed Megamerger!

Press Release: UFCW Locals 5, 7, 324, 400, 770, 1564, 3000

For immediate release: February 26, 2024
Contact: Tom Geiger, UFCW 3000, 206-604-3421

UFCW Local Unions Applaud the FTC Decision to Reject Kroger and Albertsons Proposed Megamerger

UFCW local unions representing more than 100,000 grocery store employees working at Albertsons and Kroger-owned stores in over a dozen states and the District of Columbia applaud the FTC Decision to reject this proposed megamerger.

UFCW local unions 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.

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.

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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 including Supermarket News story titled “UFCW cites ‘echoes of Haggen’ in proposed C&S deal”

9/27 – UFCW local 7 hold 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 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/

2/22 – The Washington State Legislature passed SB 6007 – a new law to provide protections for grocery store workers from the harm that can result when chains merge and the consequences include layoffs and store closures. 

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:

• Statement from UFCW International after a unanimous vote at the UFCW Convention to oppose the proposed merger: https://www.ufcw.org/press-releases/americas-largest-union-of-essential-grocery-workers-announces-opposition-to-kroger-and-albertsons-merger/)

• Statement from Teamsters International in opposing the proposed divestiture: https://teamster.org/2023/12/teamsters-call-on-ftc-to-reject-kroger-albertsons-proposed-asset-sales-to-cs/

Stop the Merger Telephone Town Hall Call Thursday!

Attention all UFCW 3000 Grocery Store Members. You are invited to join our live Telephone Town Hall on Thursday, February 1 at 4pm to hear updates on our efforts to oppose the Kroger and Albertsons’ proposed merger, and a live Question and Answer session with members on this important topic. We will be joined by our union’s top officers, experts, and also our partners from Teamsters 38.

When your phone rings Thursday at 4pm, just answer and you will join the call. If for some reason you do not get a call or you get disconnected, you can also join us by dialing 1-888-652-0383 and entering meeting ID 7803 during the time of the call.

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

Update on Our Efforts to Protect Workers and Customers from the Proposed Kroger-Albertsons Merger/C&S Divestiture

We wanted to provide you with an update on our efforts to oppose the proposed merger between The Kroger Company (parent company of Fred Meyer and QFC) and Albertsons Companies, Inc. (parent company of Safeway, Albertsons and Haggen stores) and their proposed divestiture of stores to C&S Wholesale Grocers.

1. On Monday, January 15, Washington State Attorney General Bob Ferguson filed a lawsuit in King County, Washington court to block the proposed merger. Our UFCW 3000 endorsement of this legal action and a quote from UFCW 3000 grocery store member Yasmin Ashur who works at the Port Orchard Albertsons was part of the news coverage in the Seattle Times news article linked above and other news stories nationwide.

2. The Federal Trade Commission (FTC) is continuing its review of the proposed merger, and we continue to work closely with them. Many analysts feel it is more than likely that the FTC will challenge the merger. Our local union, in coalition with other local unions from across the United States, has provided extensive information about the proposed merger to the FTC. We remain hopeful that the FTC will also challenge the proposed merger. Both the courts and the FTC have the power to potentially block the merger from being completed.

3. Recently, Kroger and Albertsons have announced a delay to the merger timeline, until potentially as late as August. No doubt this delay is in response to both news of the lawsuit and the pressure campaign mounted by a broad swath of consumer groups, unions, farmers, ranchers, and others committed to preventing the harmful effects of this merger.

JOIN US!

All our grocery store members are invited to join us for a webinar on Tuesday, January 23. Please go to the link below to register for your preferred webinar:

MORNING MEETING:

Tuesday 1/23/24

8 AM

EVENING MEETING:

Tuesday 1/23/24

5 PM

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Additional information:

• This is far from a done deal: Kroger and Albertsons cannot sell stores to C&S Wholesale Grocers unless and until a merger were approved by regulators, and now, because of the Washington State lawsuit, the courts.

• Contrary to comments made by these companies, this proposed merger is not at all necessary. Nor does their announced divestiture plan remedy our concerns. Both Kroger and Albertsons are doing well financially and making strong profits.

• The proposed merger is really about greed. These two companies have already profited so much from the labor of grocery store workers all while often under-staffing stores and over-charging customers. Instead of investing in improved working conditions and reduced prices, they have prioritized high CEO pay, large dividends, including an Albertsons $4 Billion give away in early 2023, and massive stock buy backs.

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Keeping up the Effort to Protect Workers and Customers

Our efforts over the past year and a half, from actions at the store level, to meeting with regulators, to helping to educate the public and generate hundreds of TV, radio and newspaper stories across the nation, have and continue to have an impact. We can’t let up now. The proposed Kroger-Albertsons merger would no doubt be disastrous for consumers in the form of higher prices, for workers in the form of lost jobs, lower wages, and crippling losses to pension and health benefit plans, for farmers and ranchers who will lose a major buyer of their products,  and for thousands of Americans who would find themselves living in food and drug-store deserts without adequate access to everyday necessities. If you haven’t done so already, please tell the FTC and you can also write to Washington’s Attorney General to thank him for his recent lawsuit and let him know why you oppose the proposed merger.

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.

Update on Proposed Kroger/Albertsons merger

To all of our members and #StopTheMerger coalition partners and allies:

We wanted to share a brief update with you on where things stand with the proposed Kroger/Albertsons merger and our collective efforts to stop this harmful deal.
 
First off, we want to clarify where things stand right now. Despiterecent news reports to the contrary,the Federal Trade Commission (FTC) does not need to make a decision this week.
 
The bottom line is this: based on the information we have now, we expect the FTC to make a decision on the proposed merger early in the new year. This is consistent both with our understanding of the process and with public statements made by FTC chair Lina Khan.
 
Once the FTC has completed its investigation of the merger deal, there are three possible outcomes:

1. The FTC can seek to stop the transaction by filing a preliminary injunction in federal court and the case will go to administrative trial. We believe our campaign has in part made this the most likely outcome and the trial will take many months to conclude.
   or

2. The FTC can enter into a negotiated consent agreement with the companies and allow the deal to go forward under certain conditions, e.g.divestitures. This is how past mergers of this kind have been treated under previous administrations, but we believe it is unlikely in this case under the Biden administration.
   or

3. The FTC closes its investigation and allows the deal to move forward unchallenged. We believe this is the least likely scenario.

Secondly, we’d like to draw your attention to some recent activities and developments:

• A new report was issued by economist MarshallSteinbaum from the University of Utah demonstrating how the deal could dampen labor power and thus lead to devastating outcomes for workers. You can download the report and view our press release highlighting it, which was picked up in a few media stories.

• This week, our union siblings at the Teamsters International union have come out against the companies’ plans to divest hundreds of stores to C&S. You can read their press release here.

• Last month, our friends at American Economic Liberties Project hosted a great virtual event on the “disaster in the making” that is this merger, featuring workers, independent grocers, farmers, and consumers that the proposed merger would directly impact. Check out the video on YouTube.

• Today, UFCW members in Southern California will meet with California Attorney General Rob Bonta and shared their stories about previous mergers in the grocery industry and their concerns with the proposed merger between Kroger and Albertsons.

Lastly, we’d like tothank all of you for being a part of this effort to protect workers and our communities from the devastating impacts of this proposed mega-merger.As always, please do not hesitate to reach out to us if you have any questions or suggestions.
 
In solidarity,
#StopTheMergerCoalition
www.nogrocerymerger.com