Resolution To Oppose the Kroger-Albertsons Merger

September 20, 2023

WHEREAS, in October of 2022, Kroger and Albertsons announced they would pursue a $24.6 billion mega-merger, joining together the two largest standalone U.S. grocery chains, and

WHEREAS, as sales soared during the COVID-19 pandemic, Kroger and Albertsons investors   prioritized cash profits for themselves over working families. Sales at Kroger have grown nearly 20% and sales at Albertsons nearly 23% over the past two and a half years, and

WHEREAS, UFCW 3000 represents Kroger and Albertsons workers across Washington State and bargains with both these employers, and 

WHEREAS, Kroger and Albertsons consistently fight against the wage increases and working conditions union members need to make their jobs livable, and

WHEREAS, the mega-merger is currently undergoing antitrust review by the Federal Trade Commission and has faced scrutiny from state attorneys general across the country, and

WHEREAS, Kroger and Albertsons dominate the industry and the Seattle metropolitan market, and there would be far less competition if the two companies merged. Combined the two chains have over 40% market share in the Seattle area, according to Metro Market Studies. Both chains have stores and manufacturing facilities in nearly every state and employ over 700,000 workers across their numerous local banners, distribution facilities and private label brands, and

WHEREAS, the merger would hurt grocery workers. Evidence from researchers at Columbia University and the University of Chicago found that in many parts of the country larger employers dominate parts of the labor market and they use this market power to lower wages, 

WHEREAS, food deserts and high food prices already harm consumers, and this merger would only make it worse. In 2012, the Federal Trade Commission found that mergers like this one tend to lead to price increases for consumers. Past grocery mergers have created and exacerbated food deserts, 

WHEREAS, Albertsons executives stand to gain huge amounts of cash, while consumers and workers face the consequences. Already, Albertsons’ private equity owners pulled out billions in cash for themselves instead of investing in employee wages and benefits. If the merger is approved, Albertsons CEO, Vivek Sankaran, will get over $43 million, the equivalent an average Albertsons employee working 1,355 years would earn, and

WHEREAS, on Friday, September 8th, Kroger and Albertsons announced plans to sell at least 413 stores across the country to C&S Wholesale Grocers (C&S) as part of the mega-merger of the two companies. An additional 237 stores may also be sold to C&S as part of the deal, depending on the results of the regulatory review of the merger with the Federal Trade Commission, and

WHEREAS, this disproportionately affects Washington families, as over 100 of the 413 stores to be sold to C & S are in Washington, and

WHEREAS, union members are concerned that this could result in a repeat of the 2015 sale of Safeway to Albertsons, in which Albertsons sold 100 stores to Haggen, a small private equity backed chain, to help pass antitrust review. Less than a year later, Haggen declared bankruptcy, stores were shut down, and thousands of workers lost their jobs. It was called the fastest bankruptcy in modern history, and

WHEREAS, a coalition of over 100 organizations has written numerous letters to the FTC and state Attorneys General, held meetings with federal and state elected officials and regulators, and hosted community events to oppose the merger, and

WHEREAS, working people, community members and consumers in the Pacific Northwest and across the country will be hurt by the approval of this merger if wages and food access goes down and food prices go up.

THEREFORE BE IT RESOLVED, that MLK Labor opposes the Kroger-Albertsons merger and will sign on and join the coalition to oppose the merger, and 

BE IT FURTHER RESOLVED, that MLK Labor will join in any local actions to express our concerns for workers and our communities, and

BE IT FURTHER RESOLVED, that MLK Labor will send a letter to the Federal Trade Commission sharing our stance on the merger as well as the C & S divestiture, and encourage other affiliates to do the same.