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Unions and Washington attorney general press to block Kroger'Albertsons merger, citing risks to workers and shoppers
Summary
Union leaders and Attorney General Bob Ferguson urged a federal court to block Kroger's planned acquisition of Albertsons, saying the deal would reduce competition, threaten jobs and raise prices — and highlighting evidence from company documents and prior divestitures.
Union leaders and Washington Attorney General Bob Ferguson held a press conference to oppose Kroger's proposed acquisition of Albertsons, arguing the merger would harm workers, reduce competition and raise prices for consumers across the state.
"These companies wanted to quietly give away $4,000,000,000 to their wealthy investors," said Faye Gunther, president of UFCW 3000, describing what she called an unacceptable corporate windfall that could have been spent on store investments, staffing and safety. Gunther said Washington would be disproportionately affected because 124 stores in the state are slated for divestiture to a buyer identified in court filings as CNS Wholesalers.
The coalition of unions and community groups brought grocery worker testimony and research to the event. "I am a mom. I'm a grandmother," said Yasmin Asher, a 25'year grocery worker and UFCW member, who said the proposed sale of her Port Orchard store to an inexperienced buyer threatens wages, health care, pensions and local grocery access.
Katie Garrow, executive secretary-treasurer of MLK Labor AFL-CIO, pointed to academic research and past enforcement actions to argue the merger would concentrate market power and depress wages. "In many parts of the country where larger employers dominate parts of the labor market, they use this power to lower wages," Garrow said, and she cited a 2012 Federal Trade Commission finding that similar supermarket consolidations have led to price increases.
Attorney General Bob Ferguson said his office is presenting the state's case in federal court in Portland. "Kroger's plan to acquire Albertsons would be the largest supermarket merger in U.S. history and a disaster for Washington consumers," Ferguson said, adding that the state will introduce internal company documents showing executives discussed pricing and competition. He said Kroger and Albertsons together account for nearly $250,000,000,000 in annual sales and roughly half of supermarket sales in Washington.
Ferguson framed the litigation as the state enforcing its laws to protect fair competition and consumers. He acknowledged uncertainty in litigation outcomes but said his office rarely loses in court and that the trial will allow a judge to weigh evidence about market effects, pricing and whether the merger violates state law.
The press conference closed with organizers urging public support and with Ferguson offering to take a few questions about the case; he said lawyers will present the evidence and that the process will unfold in court.
The federal antitrust trial challenging the proposed merger is underway in Portland; the state's next procedural steps will continue in that court proceeding.
