January 17, 2008

Kroger Walks Out of Negotiations, Ends Contract Extension in Memphis

Local 1529-In Memphis, Local 1529 has been bargaining in good faith with the Kroger Company. Because of outstanding issues, Kroger and Local 1529 agreed on contract extensions since the contract expired in October.

However, during the last set of negotiations the Kroger Company presented members with an unacceptable proposal, and then walked away from the table. Furthermore, Kroger decided to end the most recent contract extension as of midnight, January 12th.

One result of this extension ending is that Kroger will be stopping dues check-off for members. This is simply an intimidation tactic that Kroger is using to get Local 1529 members to agree to an unacceptable contract proposal —one that does not reflect their hard work or the role they play in making Kroger one of the most profitable companies in the grocery industry.

Local 1529 has been attempting to negotiate the issue of health care with Kroger for several months. They’re offering solutions, putting out concrete proposals that would benefit both the company and 1529 members. On the other hand, Kroger is proposing to underfund members’ health and welfare fund, which would almost certainly result in benefit cuts for members and their families during the life of the contract.


Kroger has played this game before. In Houston, in Arkansas, and in Oregon, members believed Kroger’s word that the health and welfare funds would be adequately funded—and when health care costs went up, members suffered benefit cuts.

David Dillon, the CEO of Kroger, likes to talk about how great employees are. When reporting on the company’s record revenue and profits, he said, "We challenged our associates to help us improve our connection with customers. They accepted the challenge and raised the bar, as these market share gains clearly show."

It is time that Kroger shares the success and profits of its growing market share with the people Mr. Dillon says made it possible. Unfortunately, Kroger claims they need to be competitive in the Memphis area—but Kroger already has the number one market share in Memphis. Kroger executives are making millions, while they attempt to strip health care coverage from workers and their families. And that’s just not right.

We need to stand strong and send a message to Kroger—members will not be bullied by the kind of intimidation tactics that the company is trying to use. We will continue to stick together and speak up for a good contract that protects affordable, quality health care for all Local 1529 members.