C&S Wholesale Grocers, which is positioned to purchase 579 stores from Kroger and Albertsons if federal regulators approve their proposed $24.6 billion merger, restated its commitment to honor all union contracts if the deal goes through.
A story in the Albuquerque Journal noted that workers at stores that could be divested in the state have worried that their jobs and benefits could be on the line, but Greg Frazier, president of United Food and Commercial Workers Local 1564, which represents roughly 1,500 Albertsons workers and 2,500 Kroger workers across the state, said C&S has committed to honoring the contracts.
Nine stores in New Mexico could be divested to C&S under the acquisition proposal. Four of those are Albertsons locations in Albuquerque, and two are Safeway stores in Farmington. Three more Albertsons locations in Los Lunas, Rio Rancho, and Taos would also be sold to C&S under the deal.
Supermarket News could not immediately reach union officials, but a C&S spokesperson responded with the following message: “C&S has committed to honoring all collective bargaining agreements including industry-leading benefits and retaining frontline associates, and we are confident the associates joining the C&S family will have an amazing opportunity to continue building a thriving career. We are working closely with the union and Teamster leadership to support all members and the retail operations as they move to the C&S Family of Companies. C&S’s strong operational focus and financial resources will position it to successfully operate and continue to grow and create healthier communities for years to come.”
The message mirrors a similar commitment from C&S in February when it told members of UFCW Local 555, which represents thousands of grocery workers in Oregon, Washington, Idaho, and Wyoming, that it would maintain all collective bargaining agreements.
That union endorsed the merger due to the commitment to continue supporting collective bargaining agreements, although the deal has been roundly rejected by most unions across the country whose workers would be impacted by the acquisition.
UFCW Local 555 Union President Dan Clay said in February that “C&S has the opportunity to bring a long-term strategy to a grocery industry focused on the short-term demands of shareholders and private equity investors.”
“Employees of Kroger and C&S will be better off than employees of other potential buyers whose actions never seem to match the image they project publically. In a refreshing change of pace, C&S seems poised to deliver a much needed fresh perspective for employees and customers alike,” Clay added.
Frazier of Local 1564 told the Albuquerque Journal that the letter from C&S committing to worker contracts has given employees some comfort.
“It’s really nice for the union members, because that enables them to keep their original hire date for seniority,” Frazier told the newspaper. “That means they don’t have to have a new probationary period. They got job security because it’s guaranteed in the contract that they’ve agreed to. That’s a lot different than the non-union side. Even though they can tell them there won’t be any changes, they don’t have an enforcement of that.”
The deal faces separate lawsuits from attorneys general in Colorado and Washington state. Meanwhile, the Federal Trade Commission has filed a multi-state antitrust lawsuit to block the deal. The trial in the FTC-led lawsuit is set to begin on Aug. 26 in Portland, Ore.