Labor relations took center stage at the US Federal Trade Commission’s case regarding Kroger Co.’s acquisition of Albertsons Cos., as Kroger’s lead labor negotiator testified just as workers in Oregon went on strike. The local union in Oregon is seeking wage increases and similar terms as stores in the Seattle region, despite differences in the cost of living. The strike has shuttered 28 stores in the Portland area until after Labor Day.
Kroger operates with a large unionized workforce and has pledged to invest $1 billion annually in improving wages. The company looks at various factors in determining local wages, including other companies in the area. However, UFCW President Daniel Clay testified that the union often plays Kroger and Albertsons against each other during negotiations.
The unions express concern about C&S Wholesale Grocers, the company set to buy nearly 600 stores if the acquisition goes through, citing lack of experience in operating retail supermarkets and pharmacies. The unions fear that less experienced employees may end up at the divested stores, affecting competition.
The strike and labor negotiations are crucial as the FTC and state attorneys general have raised concerns about how the proposed deal would impact labor competition between Kroger and Albertsons. The unions’ ability to leverage strikes and negotiations plays a significant role in shaping the outcome of the acquisition and its impact on workers and competition in the grocery industry.
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