Union reaches deal for Kroger’s workers
Voting on the contract begins this week among Houston-area employees
Houston-area Kroger employees this week are voting on a tentative contract agreement that the union reached with the grocer over the weekend.
“The agreement recognizes our associates for their hard work by delivering significant wage increases, maintaining affordable health care, and providing a pension for retirement,” Kroger said in a statement.
In a letter to union members, United Food and Commercial Workers Local 455 President Brandon Hopkins said the deal calls for wage increases for all employees over the next three years, a reduction in health insurance premiums, and a reduction in the minimum hours required to qualify for health insurance coverage, among other things. Further details were not revealed.
“The tentative agreement reached by your bargaining committee for a new three-year contract is a strong package that rewards your hard work,” Hopkins said.
The union is asking store associates to approve the tentative agreement. Voting will begin Thursday in stores, and continue through March 12.
Meanwhile, Cincinnatibased Kroger continues to pursue a merger with grocer Albertsons, which is headquartered in Boise, Idaho. Hoping to make the union palatable to regulators, the companies in September said they would sell 413 stores, including 26 in Texas, as part of the $24.6 billion deal.
Still, the Federal Trade Commission on Monday sued to block the merger, saying it would eliminate competition and lead to higher grocery prices for millions of consumers at a moment when the cost of staples is already straining many household budgets.
Kroger and Albertsons say the merger, proposed in 2022, would help them better compete with Walmart, Amazon, Costco and other big rivals. Together, Kroger and Albertsons would control about 13% of the U.S. grocery market; Walmart controls 22%, according to J.P. Morgan analyst Ken Goldman.
Both companies, immediately after the FTC announcement, said they will challenge the agency in court.
Kroger operates 2,750 stores in 35 states and the District of Columbia, including brands like Ralphs, Smith’s and Harris Teeter. Albertsons operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 700,000 people.