Dive Brief:

• The International Brotherhood of Teamsters has announced its formal opposition to the proposed Kroger-Albertsons merger that is currently under review by the Federal Trade Commission, according to a Monday press release. 
• The union represents over 22,000 members in both Kroger and Albertsons stores, distribution centers and manufacturing plants, and its statement comes after months of discussions with both grocers over protecting the interests of Teamsters employees. 
• The Teamsters join the National Grocers Association as well as the United Food and Commercial Workers International Union in formally opposing the supermarket merger.

Dive Insight:

In its statement, the Teamsters union called out Kroger and Albertsons for only offering “vague promises” regarding to employees’ futures. 

“Kroger and Albertsons management likes to talk the talk on job security when they’re sitting in front of Congress but talk means little when it comes to protecting our members,” said Tom Erickson, international vice president and director of the Teamsters warehouse division. “Clearly, they are more interested in guaranteeing big payouts for management.”

Erickson also noted that the grocers have not agreed to recognize existing union contracts or to include successorship language for members’ stores sold to third parties in connection with the merger. 

“Instead of finding a path to ensure our members succeed in lockstep with the companies, Kroger and Albertsons apparently want to go down this road alone,” Erickson said. 

In response to the Teamsters’ announcement, a Kroger spokesperson stated: “We have and will continue to engage constructively with the Teamsters regarding the merger benefits and our divestiture plan, which includes no store closures or frontline associate layoffs as a result of the transaction. The merger is a win for our associates, customers and communities.”

An Albertsons Companies spokesperson, meanwhile, noted in a statement: “We have a rich history of creating quality jobs and working collaboratively alongside Teamsters. Our proposed merger with Kroger will secure the long-term future of union jobs by establishing a more competitive alternative to large, non-union retailers. The combined company will also invest in associate wages, training, and benefits to ensure it is able to bring even more value to the customers and communities our associates so proudly serve.”

The Teamsters union joins other labor organizations in voicing opposition to the pending mega-merger. In November 2022, six local UFCW unions representing over 100,000 Kroger and Albertsons employees called on regulators and members of Congress to oppose the merger. During a conference on Capitol Hill that month, union members said they feared the proposed $24.6 billion merger would decrease competition in the grocery industry, raise food prices for consumers and cause major job cuts due to store closures. 

Only a month before, the NGA released a response to the merger announcement, raising concerns over a “single supermarket giant gaining unprecedented dominance over the nation’s food supply” and putting smaller grocery competitors at an “unfair disadvantage” as well as increasing “anticompetitive buyer power over grocery suppliers.” 

In April, local UFCW unions held protests under a coordinated effort spearheaded by Stop the Merger, a group of more than 100 organizations opposing the deal. Workers at 34 stores under the Kroger and Albertsons banners participated in protests across Washington, West Virginia, California, Virginia and Washington, D.C.