Press Release: UFCW Locals issue statement in response to Kroger and Albertsons release of store divestiture list

UFCW 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.”

UFCW 3000 Member Days at the Park! Tickets on Sale NOW!

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:

Sunday, June 16: Refuse to Abuse Mariners Game Day (Seattle, WA)
Mariners tickets on sale now through Friday, June 14 at 5pm >>
$35

​Tuesday, August 6: UFCW 3000 Day at Silverwood Theme Park (Athol, ID)
Tickets on sale now through July 19, while supplies last! >>
$40.00 adult/$25.00 youth or senior
Ticket includes:

• 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

Thursday, August 8: UFCW 3000 Day at Wild Waves Theme & Water Park (Federal Way, WA)
Tickets on sale now through July 19, while supplies last! >>
$20.00 adult/$15.00 youth or senior

Friday, September 13: UFCW 3000 Day at the Pendleton Round Up (Pendleton, OR)
Tickets on sale soon

UFCW Locals issue statement on Kroger's updated proposed divesture plan

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

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.

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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:

2. 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.

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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.

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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.

• Local 400 Kroger Grocery Store members in West Virginia approve new contract with major improvements after almost going on strike.

• 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.

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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.

Progress made in ‘23 – Building for more in ‘24

Progress made in ‘23 – Building for more in ‘24

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. 

In 2023...

• 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.

And in 2024 we’ll fight for even more.

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.

UFCW 3000 Executive Board Unanimously Endorses Movement to Vote “Uncommitted” in Upcoming Democratic Primary in Washington State

As the largest labor union in Washington State with over 50,000 members, and the largest UFCW local union in the nation, the UFCW 3000’s member-led Executive Board decided on Wednesday February 28th to endorse the effort to have people in the Democratic primary in Washington State vote “uncommitted” on the upcoming ballot.

While Biden has been an ally to workers over the last four years, low-wage workers cannot afford setbacks when it comes to the right to organize and the protections we’ve won during Biden’s time in office. To protect workers, we must give ourselves the best chance to defeat anti-worker forces in the General Election. The entire purpose of a primary election, unlike the general election, is for voters to cast their ballot to reflect their current wish for the party’s nomination.

Currently, many voters, and UFCW 3000 executive board, feel that the best path to have the best nominee, and to defeat Trump, is to vote “uncommitted” on the upcoming March 12 Washington primary. The hope is that this will strengthen the Democratic party’s ultimate nominee to defeat Trump in the General Election in November.

Once the Democratic National Convention takes place, our union is committed to sending staff, members, and resources to any swing state across the nation to support the Democratic nominee to win and defeat Trump.

We need a nominee who can run and beat Trump to protect workers across this country and around the world.

We stand in solidarity with our partners in Michigan who sent a clear message in their primary that Biden must do more to address the humanitarian crisis in Gaza. Biden must push for a lasting ceasefire and ending US funding toward this reckless war.

We have many members who are deeply impacted by the war. The best way to send this message for policy change is through a vote of “uncommitted” on the upcoming March 12 Washington primary.