Press Release: King Soopers Sets the Record Straight

Honoring their commitment to transparent and honest communication

Denver, CO (January 29, 2025) – King Soopers reaffirms its dedication to open and honest communication by addressing misconceptions surrounding the collective bargaining process and its Last Best and Final Offer (LBFO). With a focus on providing accurate information, the Company aims to clarify misunderstandings and share the facts about the current state of negotiations.

“At King Soopers we firmly believe in transparency, honesty, and integrity,” said King Soopers President, Joe Kelley. “We remain focused on rewarding our hardworking associates, while keeping groceries affordable for families, which ensures our stores remain strong contributors to the community, even in the face of non-union competition.”

MISCONCEPTION FACT
King Soopers has failed to bargain in good faith, leading the Union to file Unfair Labor Practices (ULPs). This is why the Union is taking a strike authorization vote. The National Labor Relations Board has not determined King Soopers has committed an Unfair Labor Practice during these negotiations.

 

These are merely allegations, which the Company will unequivocally defend against.

 

To propose a ULP strike based on unfounded allegations is reckless.

The King Soopers’ strike in 2022 resulted in concessions from the company. The contract ratified after the strike in 2022 did not include any additional investments. In fact, once the 2022 contract was ratified after the strike, the total value of the offer decreased by $18 million over the life of the contract.
King Soopers wage investment is not enough. The Company’s Last, Best and Final Offer includes significant wage investments over the four year contract. The offer provides up to a 6% increase in the first year. This investment adds to the employee’s total compensation package that includes industry-leading healthcare and a secure pension, which the Union does not contribute to.
King Soopers is making associates and customers pay for the failed merger.  To compare the merger and stock buybacks to the Company’s investment in associates is like comparing apples to oranges – a stock buyback is a one-time payout, while associate wages are a long-term investment.

King Soopers business model is built on a simple philosophy: invest in associates and communities, enhance the customer experience, and deliver value to our shareholders. This balanced combination allows the Company to provide associates with an opportunity culture, invest in our communities, all while keeping groceries affordable for customers.

King Soopers scheduling best practices are inadequate. King Soopers prioritizes staffing as these decisions are critical to ensuring stores run smoothly, associates have a positive work environment and are able to deliver the exceptional service customers expect. Staffing is a complex issue, and the Company remains willing to engage in good faith discussion on the topic with the Union. The Company has offered to expand the Joint Labor Management Committee, giving associates a collective stake in staffing discussions.
King Soopers does not prioritize safety. Safety is a top priority for the Company, as evident by their strong track record of investing in cutting-edge safety measures, training programs, and resources to protect both its associates and customers. Additionally, throughout the negotiations process the Company has committed to expanding its Master Safety Committee and has proposed stronger emergency protocols.

The Company will continue to work in partnership with local law enforcement as part of their safety efforts.

 

About King Soopers/City Market
At King Soopers/City Market, a company of The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human Spirit®. We are 23,000 associates who serve customers daily through a seamless shopping experience throughout Colorado. We are committed to creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

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