The Vons in Stevenson Ranch has been publicly listed among the 63 stores that Kroger and Albertsons have planned to divest from as a result of their merger.
The Federal Trade Commission dismissed the company’s original plan to divest from 413 stores and assets in February and is seeking a court order to dismiss the merger on antitrust grounds, according to the FTC website. In April, Kroger and Albertsons responded with a revised plan that now included 579 stores and non-store assets that would be divested to C&S Wholesale Grocers.
“We have reached an agreement with C&S for an updated divestiture package that maintains Kroger’s commitments to customers, associates and communities, addresses concerns raised by regulators, and will further ensure that C&S can successfully operate the divested stores as they are operated today,” Rodney McMullen, Kroger’s chairman and CEO, said in a statement released by Kroger officials.
Critics of the merger have stated that they believe C&S is not strong enough to own and operate these new additions. Specifically in California, C&S will not be obtaining any new warehouses, leading people to speculate about how they will properly operate these new stores, Kathy Finn, president of United Food and Commercial Workers 770, said in a news conference.
The FTC argues that this is the largest supermarket merger in U.S. history and will eliminate competition, raise grocery prices, and threaten workers’ ability to secure higher wages, better benefits and improved work conditions.
The UFCW union locals, including two California chapters of the UFCW union 324 and 770 released a statement last week in opposition to the merger.
“Today’s announcement changes nothing. The merger is not a done deal – far from it. We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago, because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal,” the labor groups said in a news release last week.
John Marshall, a financial analyst for UFCW locals 3000 and 324, said in a press conference that this merger has the potential to be a repeat of the Haggen merger in 2015 if it goes through. Six months after Vons or Albertsons stores were sold to Haggen, they announced they were closing most of them.
“This is about enforcing the antitrust laws that are on the books,” Marshall said.
Kroger has reiterated that this newly updated plan will ensure that no stores will close as a result of the merger, will maintain benefits and bargained-for wages, and ensure frontline associates remain employed.
“C&S will recognize the union workforce and maintain all collective bargaining agreements. We are committed to retaining frontline employees and further investing in growth,” Lauren La Bruno, vice president of communications, change management and community relations for C&S, said in an emailed statement. “C&S is well prepared to successfully operate these stores for many generations to come. We have an experienced management team with an extensive background in food retail and distribution, and the financial strength to continue investing in growth.
Jessica Crowley, UFCW 770 member, said in the press conference, “History shows we can’t take merger promises at face value.”
It is difficult for workers to believe statements when the merger has been problematic and aggressive, she said.
