New Mexico grocery workers authorize strike, accuse Albertsons and Smith’s of collusion in contract talks

SANTA FE — The union representing thousands of Albertsons and Smith’s workers in New Mexico announced late Friday that it has authorized a strike in response to what it calls collusion by the two companies over contract negotiations.

The decision by the union’s members comes about a week after the United Food and Commercial Workers Local 1564 filed unfair labor practice charges against the grocery chains with the National Labor Relations Board. The charges allege that the two companies constructed “a multi-employer bargaining unit without the union’s consent” by working together despite Albertsons’ and Smith’s parent companies’ failure to merge successfully last year.

Albertsons and Smith’s, two of the largest grocery chains in New Mexico, with dozens of stores spanning from Las Cruces to Farmington, are owned by Albertsons Cos. and Kroger Co. The two companies in December failed to complete a $25 billion merger after two separate judges temporarily blocked the deal. Albertsons ultimately backed out of the merger, suing Kroger a short time later in a battle that continues as workers in New Mexico eye what they hope are new, fair deals with the companies.

The union, which represents more than 3,700 employees from both grocery chains, alleges Smith’s and Albertsons have failed to provide information requested by the union to allow it to bargain new contracts and accuses the chains of refusing to arbitrate grievances that have surfaced under the current agreements.

The union met with officials from both grocery chains, starting Monday, in hopes of striking new deals. The current contracts between the union and the grocery chains end June 28, meaning if talks don’t develop successfully, workers could strike as soon as the following day, said UFCW Local 1564 President Greg Frazier.

Frazier said the union held meetings in Santa Fe, Taos, Albuquerque, Gallup, Farmington, Roswell and Clovis, where union members cast their ballots to authorize a strike. Roughly 97% of voting members chose yes. While a strike is now authorized, the union can still hold votes in Los Alamos, White Rock, Silver City, Las Cruces and Carlsbad, Frazier said.

“The hope is that Kroger and Albertsons both will see that their employees are demanding things change and that there will be a completely different negotiating attitude from them at the table so we can start making ground on the issues we need to make ground on,” Frazier said.

For Carl Trujillo, a union member and meat cutter at the Smith’s on Cerrillos Road in Santa Fe, the vote to authorize a strike comes as he says his store’s workers have battled persistent understaffing and have tried to fight for fair wages that keep up with inflation.

“Everything’s just so expensive,” said Trujillo, who has worked at Smith’s for 20 years. “Ground beef right now is $5.99 a pound; I’ve never seen it that high. In Santa Fe, rent is always going up. ... That’s what we really need is a livable wage.

“We understand we are not going to get rich working in a supermarket, but we want to be able to provide for our families and live a somewhat comfortable life.”

Frazier said that in negotiating new contracts, the grocery chains have not provided vendor agreements that have taken responsibilities away from store workers. Smith’s, for instance, had failed in the past to provide documents outlining its agreement with PepsiCo, the owner of Gatorade, which now stocks the sports drink at the stores.

“These companies continue to try to get other people to do their work other than the employees so that they don’t have to pay health benefits — so that they don’t have to pay towards their retirement,” Frazier said.

The union is also looking for information on how the companies are utilizing artificial intelligence and how that could affect union workers’ jobs, Frazier said.

An Albertsons spokesperson didn’t directly respond to the union’s accusations or the strike authorization.

“We respect the rights of workers to engage in collective bargaining and remain committed to negotiating in good faith to reach an agreement that is fair to our employees, good for our guests and allows our company to remain competitive,” said Abie Rampy, the Albertsons spokesperson.

A Smith’s spokesperson provided the same statement it did to the Journal earlier this month, saying that the “claim of an unfair labor practice against Smith’s by UFCW Local 1564 is unfounded.”

“We’re focused on reaching a balanced agreement — one that increases wages for our associates while keeping groceries affordable for New Mexico families,” Smith’s spokesperson Tina Murray said. “The path to a fair and peaceful resolution is at the bargaining table. We urge the union to stay engaged in the process and work with us to find common ground that benefits everyone.”

Trujillo, who worked the Saturday following the union’s announcement that it had voted to authorize a strike, said he hopes UFCW Local 1564 and the grocery chains can reach an agreement.

“When you’re in the heat of the moment and you’re at work, it’s something you don’t really think about,” Trujillo said. “When you feel it most is when you are at home and you see it on Channel 7 news or Channel 4 news or when you’re talking to your wife about everyday stuff — groceries, rent, utilities — that’s when you think, ‘Wow if we do strike, it’s going to be hard.’ But we’ll be able to make it. We’ll squeeze through.”

Matthew Narvaiz is the Albuquerque Journal’s business editor. You can reach him at mnarvaiz@abqjournal.com.