Friday, March 8, 2024 | 2 a.m.
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Throughout history, union jobs have long been the bedrock of the grocery industry. However, their prominence in this space has waned over the years. Kroger and Albertsons, both major players in the unionized grocery sector, face an uphill battle as non-union giants like Walmart, Amazon and Costco continue to expand their market dominance. Illustrating this dominance, Walmart, Costco, Amazon and other such national discounters, account for approximately $700 billion in annual grocery sales, while traditional grocers account for approximately $400 billion annually.
A floating myth of the proposed Kroger-Albertsons merger has been that stores will close and jobs will be lost. This is not the case. Kroger has committed to keeping all existing stores open and ensuring all frontline positions are retained. Kroger has a solid history of providing competitive wages and benefits for their employees.They have vowed to not only continue this once the merger is completed, but to build on it by investing in continued wage increases and additional benefits.
Even further, the proposed merger presents a pivotal opportunity to strengthen unionized grocery work, potentially establishing Kroger as the nation’s largest union company.
Ensuring the vitality of frontline associates, preserving existing collective bargaining agreements, and safeguarding industry-leading health care and pension benefits are paramount aspects of this merger. In 2003, half of all grocery jobs were unionized; today, that figure has dwindled to a mere 15%.
The shifting tides of the market underscore the urgency of this merger. While supermarket grocers once commanded 80% of the market share, they now struggle to maintain a foothold with less than 40%, while national discount chains reign supreme.
Two decades ago, Kroger’s market position was trailing Walmart by $24 billion. Fast forward to 2023, and that gap has widened to a staggering $205 billion, with Walmart boasting 29% of the market compared with Kroger’s modest 10%.
With increased scale and competitiveness, Kroger pledges to continue its trajectory of lowering prices for customers. The infusion of $500 million to immediately slash prices and $1.3 billion to enhance customer experiences underscores Kroger’s dedication to consumer satisfaction and community well-being.
The proposed merger represents a critical juncture in the grocery industry. It offers a chance to level the grocery playing field, foster greater competition, lower prices and expand consumer choice. As stakeholders weigh the merits of this merger, they must recognize its potential to reshape the future of unionized labor in the grocery sector while championing broader social and economic prosperity.
Rudy Pamintuan is the chief of staff to Lt. Gov. Stavros Anthony. He oversees tourism, transportation, economic development, workforce development and outdoor recreation portfolios, and the Office of Small Business Advocacy.
