We have some huge news to share – yesterday, a federal judge in Oregon and a judge in Washington state both issued rulings blocking the proposed merger of Kroger and Albertsons. And this morning, Albertsons officially terminated its merger agreement. The mega-merger that we’ve been opposing for more than two years is officially dead! We did it!
This mega-merger would have been a disaster that threatened thousands of grocery jobs, raised prices, increased food deserts, and further monopolized an industry that is already ruled by only a handful of corporations.
Without the work of our members testifying before the Federal Trade Commission, meeting with members of Congress, speaking out to the media, protesting in the streets, and more, this would have never happened. We couldn’t be more proud of you for sticking together through this fight.
And to be clear, this deal absolutely would have been a disaster. If Kroger acquired Albertsons, there would be even less competition in the grocery industry. That means customers would have fewer choices of where to shop and what to buy, and prices would go up higher than they already are. If you could no longer go across the street to get a better deal, Kroger would have no reason to keep prices low.
It also would have been bad for our members in grocery stores. Kroger would no longer compete with other employers for the same workforce, which would lower wages and benefits. If you can’t go across the street to a competitor and get a better job, there’s no incentive for Kroger to improve your wages or benefits.
Not only that, the merger threatened farmers, suppliers and food producers. It threatened communities with store closures and increased food deserts. It threatened union members by lowering our leverage at the bargaining table to win better contracts.
Now that the merger is dead, we call on Kroger and Albertsons to turn their focus back to where it belongs: operating grocery stores. The companies should take the billions of dollars they would have spent on this deal and redirect it to investing in their associates. Investing in you – the workers who create value for these companies – through better staffing, better wages, and better benefits will lead to better customer service and a more successful business.
Once again, we thank each and every member who helped to make this victory happen. It was a long road over more than two years, but we never gave up. Our union will never stop fighting to protect our members. You should all be proud of the work you did to stand up to these corporations. There is power in a union and you proved it.