C&S: We will honor NM union contract if Kroger/Albertsons merger goes through

When Regina Chavez took a job at Albertsons Market at 18, she didn’t know it would be permanent.

But as time went on, Chavez saw potential in a career at Albertsons — realizing the department she works in now at the South Valley store was unionized under United Food and Commercial Workers Local 1564, allowing for better benefits and pay.

“At 18, I didn’t think I’m going to be there for 21 years,” said Chavez, now 39. “But eventually, once I got into the meat department, I saw there was potential … to make a living, to actually have some sort of a career.”

Chavez is one of about 1,500 Albertsons workers across the state represented by UFCW Local 1564. The union also represents about 2,500 Kroger workers in New Mexico. Kroger operates the Smith's supermarket brand.

In Albuquerque, the union represents meat cutters at two of the four stores up for sale to C&S Wholesale Grocers as part of the planned Kroger and Albertsons Cos. merger, which is currently on hold as a court considers an antitrust lawsuit from Colorado’s attorney general to permanently block the deal.

C&S, which owns the supermarket brands Piggly Wiggly and Grand Union, could take ownership of nine Albertsons and Safeway supermarkets in New Mexico — part of a larger sale that could result in 579 stores, six distribution centers and a dairy plant sold to the company by Kroger and Albertsons.

UFCW Local 1564 President Greg Frazier said workers questioned if they would have to reapply for their jobs or if they’ll lose certain benefits. However, he received a letter from C&S last month that said the company would honor union members' collective bargaining agreement.

“The letter will confirm that, effective on the closing date, we will recognize UFCW Local 1564 as the collective bargaining representative of all employees covered by the existing collective bargaining agreement(s) between the Union and the seller(s) at the acquired facilities,” reads a portion of the letter sent from Jaime Powell, C&S’s vice president for Labor & Employment Law.

The letter continues, “Further, there will be no material changes to the terms and conditions of employment for bargaining unit employees — the ownership change will have no impact on wage rates (including overtime premiums), wage scales will be followed, benefits will be mirrored or continued, deductibles will be credited and years of service will be honored.”

Frazier said the letter puts guarantees in writing, something that gives workers a sigh of relief.

“It’s really nice for the union members, because that enables them to keep their original hire date for seniority,” Frazier said. “That means they don’t have to have a new probationary period. They got job security because it’s guaranteed in the contract that they’ve agreed to. That’s a lot different than the non-union side. Even though they can tell them there won’t be any changes, they don’t have an enforcement of that.”

C&S spokeswoman Lauren La Bruno wrote in an email to the Journal that the company also plans to extend those promises, like keeping benefits in place, to non-union employees at the New Mexico stores it acquires.

The company, if the merger goes through, will acquire four Albertsons Market stores in Albuquerque, one in Taos, one in Rio Rancho, one in Los Lunas, as well as two Safeway supermarkets in Farmington — all brands owned by subsidiaries of Albertsons Cos.

Frazier said the union has representation in six of the nine Albertsons and Safeway stores that could be sold to C&S, including the South Valley store at 1625 Rio Bravo SW and the Northeast Albuquerque location at 8100 Ventura NE. The other union-represented stores include two in Farmington, one in Taos and one in Rio Rancho, he added.

Frazier said bargaining for union workers will take place next June.

The $24.6 billion merger faces a steep road ahead.

A trial is set for Sept. 30 for the lawsuit filed by Colorado’s attorney general.

A hearing for a lawsuit filed by the Federal Trade Commission and nine attorneys general, including New Mexico Department of Justice Attorney General Raúl Torrez, is set for Aug. 26 in the U.S. District Court for the District of Oregon.

And a lawsuit filed by Washington’s attorney general has a trial scheduled for Sept. 16, according to the news site Grocery Dive.

But if the merger goes through and Chavez’s store is sold, she’s ready to take on what’s in front of her.

“Sometimes change can be a good thing,” she said. “But I’m just hoping for the best.”