Grocery Update #6: Food4Less Workers Fight For Pay Equity
Racial Redlining At A California Grocery Chain?
Discontents: 1. Pay Equity For Food4Less Workers: our analysis, followed by perspectives from grocery clerks and cashiers. Exclusive to The Checkout!
First, A Note To Our Subscribers:
The Checkout Grocery Update is unique in food media.
We are full time grocery industry professionals and write both for the industry and a general audience. We are proud to platform the change makers in our industry, from innovative emerging brands, to brilliant retail merchandisers, to rank and file workers standing up for better pay and treatment. You will find this nowhere else in the world.
The latter stakeholder group is a case in point. Food media rarely lets food workers speak for themselves. Issues of economic justice get few column inches in trade publications.
The Checkout Grocery Update is proud to be different. We are committing this whole issue to the voices of grocery clerks, cashiers and meat cutters who are negotiating a new contract with their employer, the Kroger-owned Food4Less.
These essential workers are serving their communities every day. They are almost all women of color. How often is it that grocery trade media lets these workers speak for themselves?
They deserve so much better. We all do.
Food4Less is a high volume, California-based division of Kroger that caters to value-oriented shoppers.
These high volume stores are among the most profitable in their respective divisions. After years of being underpaid and overworked to keep up with post-pandemic customer demand, workers at these Food4Less stores are standing together for better pay rates and store safety measures.
Kroger is the U.S.A.’s largest full service supermarket chain, with over 10% national market share and over 20% market share in most of California and the west coast. As a grocer, it is second only to Walmart in sales volume. Banners such as Ralph’s, Smith’s, Harris Teeter, QFC, Fred Meyer and Vitacost are among the other chains acquired by and absorbed through Kroger’s aggressive expansion strategies over the years. While growth has slowed recently, the grocer sold over$150 billion in groceries in 2023 and generated over $2.2 billion in profits. The chain has grown over 20% in sales since the pre-Covid era because, like most grocers, they took advantage of supply chain strains to raise prices above the rate of received costs increases, leading to record profits throughout 2021, 2022 and 2023. Kroger is also among the most tech-savvy retailers, with extremely effective customer data acquisition, loyalty programs and digital marketing that also informs their assortment, merchandising, pricing and store layouts. They are a very smart operator.
Kroger and rival Albertsons announced a merger in October 2022, alongside a store divestment plan to sell varied locations to C&S, a $30+ billion a year wholesaler that also operates a handful of its own stores. The $25 billion combination has been opposed by regulators, employees, lawmakers, grocery unions, community groups and suppliers. The FTC, alongside over a dozen states’ attorneys general, have filed lawsuits to prevent the merger.
Kroger is also the largest unionized grocer by a longshot. While rival Walmart has kept wages low and resisted unionization attempts, tens of thousands of Kroger employees have affiliated with United Food and Commercial Workers (UFCW) locals, making UFCW the second largest private sector union after the UPS-affiliated Teamsters. Many UFCW contracts have come up for renewal in recent years, with workers threatening and even going on strike in parts of Colorado, California, and the Midwest.
Food4Less occupies a unique market niche in the California grocery sector.
Unlike other Kroger banners on the west coast such as Ralph’s and QFC that are more middle market to premium in their pricing and assortment, Food4Less services mostly diverse, low income communities.
Food4Less employees are mostly Black and Latin American, disproportionately women, and vastly underpaid relative to their peers at other Kroger banners, sometimes by up to $4-$7 an hour to do the same tasks. Grocery clerks at Food4Less earn 16%-30% less than their Ralph’s peers, depending on their seniority. Over 78% of Food4Less workers are Latin American, and over 52% are parents. They live in some of the most expensive cities in the country, where living wages, according to MIT, are over $53,000 for single households and far above $100,000 for households with kids. Kroger’s CEO makes over $15 million a year, a 500 to 1 pay ratio to the median Kroger employee. These inequities contribute to why over 78% of Kroger workers have been food insecure and more than 1 in 7 have been homeless.
Kroger has made major public commitments to diversity, equity and inclusion to appease shareholders but also stay on top of customer expectations regarding social responsibility. The Food4less contract negotiations are where this rubber meets the road. The Food4Less workers have mobilized to change their circumstances for the better.
Nearly 6,000 workers across 7 UFCW locals from Central California to the Mexican border are negotiating new contracts. Workers are leading the bargaining.
They are pushing for fair wages and improved safety and security measures in their stores. The company has been pushing back and employees are mulling going on strike.
Stayce Martin is a cashier at a Los Angeles Food 4 Less with over 30 years of service. “This contract campaign is about equity and fairness. We’ve been undervalued and understaffed for way too long. We’re not only providing for our communities, but we’re building wealth for Kroger with our labor. It’s time that we get a fair contract that recognizes us as the essential workers that we are.”
Susana Carazo is a cashier at Food 4 Less in Fullerton, California. “All Food 4 Less workers deserve a better contract from Food 4 Less and Kroger with fair pay and benefits for the essential work we do. We are not just numbers for Kroger, we are essential, and we are the ones who see our community every day when they come to get food to put on their table. Today we’re showing we’re stronger together and that we’re willing to fight for our rights to live fairly. It’s time for Kroger to give us what we deserve.”
Elena Gonzalez is a cashier at Food 4 Less in Bell Gardens. “It's very unfair that we work for a big company and we don't make ends meet. We're struggling to pay our mortgages and to put food on the table. We work for a big company and we make a lot of profit for them. We’ve always been there for the company, especially with Covid, we were there (for them).”
Judith Michel is a front end lead at Food 4 Less in Pico Rivera. “Food 4 Less is owned by Kroger, one of the largest grocery chains in the country and also one of the greediest employers. I’ve witnessed their greed first hand at the bargaining table. They argue we don’t deserve to be paid the same as Ralphs even though we do the same work. This excuse is unacceptable and enough is enough. Everything is more expensive, from rent, gas, lights and water. It’s time Kroger and Food 4 Less appreciate us, our hard work and what we bring to the company.”
Kathy Finn is President of UFCW Local 770, one of the union locals involved in negotiations. “Food 4 Less workers, who are majority Black and Latinx and serve majority Black and Brown communities, are doing the same work as their Ralphs counterparts who serve more affluent communities, but they aren’t getting paid the same. In fact, they turn a higher profit for Kroger, but they get paid less. It’s pretty much like racial redlining."
Yvonne Wheeler is the President of Los Angeles County Federation of Labor. “A union job at a supermarket used to signify a pathway to the middle class, yet with Food 4 Less, it appears more akin to a race to the bottom. The fact that these essential, frontline grocery workers sometimes can’t even afford to buy groceries themselves is shameful. While companies like Kroger revel in record profits, they must recognize their responsibility to pay workers a livable wage – one that allows them to adequately provide for their families. It's time for meaningful change that prioritizes the dignity and well-being of our workforce.”
Alexis Armenta is a meat cutter at Food 4 Less in Arleta, California. “I live with my parents and two sisters, one of whom is blind and relies on me for help with medications and daily necessities. Despite my own struggles, I support my family by contributing with part of the $1,200 rent plus utilities.
“Working 20 hours a week in the meat department, I face extremely challenging conditions. I lift 70-80 pound boxes of meat, which led to a back injury. I work in a fast-paced environment, and my store is understaffed, forcing me to do the job of two people. I cut meat and serve customers, causing an overload of work and high levels of stress and pressure.
“The company's progression steps require employees to work thousands of hours for minimum wage increases. To get a $0.10 raise, I would need to work over seven months. It's frustrating and unfair. The cost of living in California is too high and as workers, we are always struggling to keep up with inflation.
“I'm also concerned about scheduling. I work closing shifts and early mornings. Unfair scheduling practices violate the Fair Work Week law that went into effect in April of 2023 in the City of Los Angeles. My co-workers and my union presented “a notice to cure” to management to fix these scheduling issues within 15 days.
“These challenges have taken a toll on my mental health. I've experienced panic attacks, dissociation, and suicidal thoughts. Two weeks ago (as of 5/9/2024), I started therapy for support.
“It's disheartening to work tirelessly to provide food for others while struggling to put food on my own family's table. My dedication to my job is unwavering, but the company seems uninterested in reciprocating, denying me additional work hours that could help me save for a car. I currently walk over a mile to get to work.
“I feel let down by a company that appears to disregard its workers' well-being, despite our critical role in making the business profitable.”
Marlena Rebollar has been a cashier at Food4Less for 12 years. “I'm a single mother of two boys and have a disabled mom. I'm the head of household, and it's really tough. Sometimes I'm there scanning groceries, and then I think about, like, I can't even afford it. Either I pay my rent or I eat.
“We want good pay. And safety at work. Some of my coworkers have gotten pepper sprayed by the customers.
“We were going to do what we have to do. We're going to go on strike. I feel like we're on the same page, all of us. And we agree that, we will do whatever it takes for them to hear us.”
Priscilla Zubia is a Service Deli Clerk at Food 4 Less in Los Angeles. “I am also a proud member of UFCW Local 770, and part of the negotiations team.
“As Bargaining Committee members, we have been trying to get a fair deal for all of us Food 4 Less workers, but the company is only offering tiny raises to some of us and nothing at all to others. This isn't right, especially for a big company like Kroger that makes so much money in profits thanks to our hard labor.
“Since we started negotiations with Food 4 Less in April, the company has refused to address our demands at the bargaining table. The entire month of May we tried to make our voices heard at the store level, bringing petitions to different stores in California.
“Some managers were respectful but others wouldn't even take our petitions. Then, the company accused us of doing something wrong, which isn't true. So we had to file unfair labor practice charges about how they treated us.
“All of us have been working hard during the pandemic, even when it was scary and dangerous. My sister, who works with me, got COVID, and then all of us in our family got sick, including our dad. Sadly, he passed away.
“When it comes to recognizing our hard work and sacrifices, the company representatives turn their heads the other way. I work 32 hours a week, making $17.20 an hour. That's not enough to pay my bills, rent (I live in an apartment with 3 siblings and one nephew), and buy food for me and my pets (I have 3 dogs & 3 cats). The cost of living in California is too high and as workers, we are always trying to keep up with inflation.Sometimes, I go to the church near my house to get food. A lot of us who work at Food 4 Less don't even have cars, and we have to bike, walk or take public transportation to get to work.
“The cost of living in California is too high and as workers, we are always struggling to keep up with inflation.It is disappointing that we work at a grocery store which is one of the highest selling stores and some co-workers say they’re not doing good, that they’re hungry. Safety is a big issue at my store. Last month, a security guard got a gun pulled on him; and many times shoplifters attack workers.
“We are the ones making money for the company, so why don't they care about us? Our dedication and sacrifices must be acknowledged and fairly compensated! Food 4 Less workers are doing too much for less pay, less benefits, and less safety. This has to change. Food 4 Less workers need more, not less! We deserve better, and we're going to keep fighting until we win a fair contract!”
The UFCW Food 4 Less/Foods Co. Bargaining Committee gave us the following statement:
“When we started contract negotiations with Food 4 Less/Foods Co., we made it clear that it’s important to us that we reach a tentative agreement before contract expiration and we came to the table willing to put in the time and work to get that done. But instead of working with us towards a reasonable contract, our employer would rather play games with our livelihoods and offer proposals that grossly underestimate our value and their wealth.
“While we are trying to bargain a fair contract for all 6,000 Food 4 Less co-workers, the company has engaged in multiple labor violations from discrimination and unlawful surveillance of workers, to prohibiting us from participating in union activity, unilaterally changing our contract, and blocking us from talking to our Union Representatives. These actions are nothing more than an attempt to strong-arm us into accepting an offer that is less than what we deserve and less than what their parent company, Kroger, provides other grocery workers in the area.
“Everyone deserves a wage that reflects their work and no one deserves to be bullied at their job. By violating our rights, Food 4 Less and Kroger are making it harder to help our customers and keep our stores well-serviced, which is why we’ve been forced to take a strike authorization vote next week.
“Moving forward, we will continue to stand together with our fellow UFCW members, our customers, and our community as we take this important next step in making our voices heard.”
Kroger recently issued its own statement about the contract negotiations, "We are negotiating with local UFCW, which is an essential part of the collective bargaining agreement... Food 4 Less looks forward to continuing to negotiate in good faith a contract that puts more money in our associates' pockets, maintains industry leading healthcare and a retirement for our associates' future. We will continue to balance our desire to invest in our associates, while keeping groceries affordable for our customers and maintaining a sustainable business for the future. Our associates are the most important piece of our business and we will continue to negotiate for an agreement that is in the best interest of our people."
We hope so.
Thank you for reading this special edition of The Checkout Grocery Update. More to come.
peace.