Rep. Peltola, Alaska Teamsters voice concerns around Albertson-Kroger merger

ANCHORAGE, Alaska (KTUU) – Rep. Mary Peltola and the Alaska Teamster Union Local 959 emphasized their disapproval of the ongoing merger of major grocery retailers Albertson and Kroger on Thursday at the Anchorage Teamsters Office.

As part of finalizing the merger, Kroger Company and Albertson, Inc. plan to divest hundreds of stores — including 14 in Alaska — to C&S Wholesale Grocers, LLC. As a result, Peltola cited at the roundtable that as many as six grocery stores in Alaska could close and called the merger “no laughing matter” and “a serious issue.” In addition to the congresswoman and union members, several Alaska legislators in attendance agreed that the merger is a real issue.

“The more power and the more consolidated they are the more challenging it is [to negotiate fair wages],” Peltola said. “And we see that with every sector but certainly the grocery sector is no different and so that is a real clear threat and I think one we should be speaking to and making sure … that wages won’t go down, that sick leave, things like that, the benefits that are negotiated, aren’t diminished.”

Peltola’s other concerns are with grocery prices, stores being at reasonable distances and keeping shelves stocked. Meanwhile, Kroger has said the merger would lead to lower prices and more choices for fresh food for customers.

“This is something that’s going to affect all of us one way or another, with what we can buy at the grocery stores, what we have access to, and a huge part of food security,” said Patrick Fitzgerald, the Alaska Teamsters Local 959′s political coordinator. “I mean, it’s going to affect our whole way of life no matter how it comes down.”

Frank Mutchie, the president of the Alaska UFCW Local 1496, was mainly concerned for his members, the vast majority of whom work for one of the two retailers.

“This mega-merger, or so call it, affects everyone throughout the state,” Mutchie said.

Another representative for union members spoke about working in retail for 20 years, saying that without the job and its benefits, “my children and myself would have never had the future that we have.”

Albertson-Kroger and the representatives at local Safeway, Carrs and Fred Meyers did immediately respond to requests for comment.

Previously, Fred Meyer & QFC Corporate Affairs Manager Tiffany Sanders wrote that the company believes the divestment would not bring about some of the fears held by Alaskans.

“We are confident C&S’s experienced, purpose-driven leadership team and more than 100-year history of food industry experience will enhance the competitive marketplace,” she said. “Importantly, C&S agreed to honor all collective bargaining agreements, securing the future of good-paying union jobs and protecting associates’ industry-leading health care and pension benefits as well as bargained-for wages.”

The specific store locations in Alaska that will be divested still have not been announced.

“Because we are still in the regulatory process, we are not in a position at this time to share the specific locations that will be divested to continue serving the community under a different owner. We anticipate being able to share these details closer to closing,” Sanders said.

At the end of the roundtable, Peltola maintained once the merger is done, there would be no do-over. She encouraged Alaskans to submit letters with concerns to the Federal Trade Commission.

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