Allegations of Collusion Between Kroger and Albertsons Against Grocery Workers’ Union
The grocery titans Albertsons and Kroger are facing accusations of unlawful collusion to undermine the bargaining power of workers amid strikes and contract negotiations in 2022, as per a lawsuit filed by Colorado’s attorney general this week.
Coordinated Efforts to Weaken Workers’ Leverage
According to the lawsuit, as employees at 78 Kroger-owned King Soopers stores in Colorado prepared to strike in January, an Albertsons labor relations executive communicated to their Kroger counterpart, affirming that Albertsons would refrain from hiring strikers during the labor dispute. This alleged agreement aimed to diminish the bargaining power of the United Food and Commercial Workers Union Local 7, which was leading the strike at King Soopers and engaging in negotiations with Albertsons-owned Safeway for a new collective bargaining agreement.
Strategic Measures to Maintain Control
Albertsons reportedly went further by agreeing not to encourage King Soopers customers to transfer their prescriptions to Albertsons’ in-store pharmacies, potentially aiding King Soopers in retaining customer loyalty during the strike.
Legal Action and Alleged Consequences
Colorado Attorney General Philip J. Weiser’s lawsuit seeks to block the proposed $25 billion merger between Kroger and Albertsons announced in 2022. It aims to prohibit any no-poach agreements between the companies and calls for each company to pay a $1 million civil penalty for any alleged agreements.
Jennifer Crumbley Reflects on Michigan School Shooting During Trial
Denials and Contradictions
A spokesperson for Kroger denied the existence of non-solicitation or no-poach agreements between Kroger and Albertsons, asserting that employees frequently transition between the two companies and other retailers.
Potential Ramifications and Opposition
The lawsuit suggests that such agreements could suppress workers’ wages and bargaining power, particularly during strikes, by restricting their ability to seek employment elsewhere. UFCW Local 7 president Kim Cordova expressed concern that such agreements hindered workers’ opportunities during the King Soopers strike and may have impacted bargaining outcomes unfavorably.
Political and Union Responses
Senator Elizabeth Warren criticized the alleged collusion, emphasizing the importance of competition to benefit consumers and workers. UFCW Local 7 has opposed the Kroger-Albertsons merger since its announcement, citing concerns about reduced competition, lower wages, and higher grocery prices.
Conclusion: Implications for Workers’ Rights and Industry Competition
The allegations of collusion between Kroger and Albertsons underscore the challenges faced by workers in maintaining leverage during labor disputes and contract negotiations. The outcome of the lawsuit and the proposed merger could significantly impact workers’ rights and competition within the grocery industry.
