The United Food and Commercial Workers International Union is opposing the proposed merger between the Kroger Company and Albertsons.  The transaction would result in a chain of close to 5,000 stores and employ more than 710,000 with 50 manufacturing plants and 70 distribution centers.

Kroger and Alberstons have offered to invest $1 billion in wage increase and benefits, to reduce prices to shoppers by $500 million and to spend $1.3 billion on store upgrades.  As part of the transaction, Kroger and Albertsons have agreed to sell 650 stores.  This will be a prerequisite for approval by the Federal Trade Commission.

According to Marc Perrone, President of the UFCW International, management has been less than transparent on the effects on workers.  Based on recent history involving Albertsons and Safeway, there is concern over the ability of divested stores to survive with heavy debt load.

The FTC has embarked on a detailed evaluation of the grocery retail market and the possible effects of the merger with respect to groceries, pharmacies and employment.

Under the current Administration, the FTC will be receptive to input from unions countering the optimism expressed by the CEOs of the respective companies in a recent article in the Cincinnati Enquirer that the deal is on track to close early in 2024.