Following strike threat, New Mexico Albertsons and Smith’s workers ratify four-year union contracts

Grocery workers at Albertsons and Smith’s stores across New Mexico will get raises and improved benefits after voting to finalize new union contracts, narrowly avoiding a potential strike.

The two grocery chains reached an agreement with United Food and Commercial Workers Local 1564 late last month, about a week after 97% of union members voted to authorize a strike in response to claims of bad-faith bargaining by both companies.

The four-year contracts approved Thursday provide workers across all departments with “significant” guaranteed annual wage increases, along with changes to vacation, retirement and overtime policies, said UFCW Local 1564 President Greg Frazier.

“I think anytime the workers stand together, the employers hear it, and in this case, they responded favorably,” Frazier said.

UFCW Local 1564 filed charges with the National Labor Relations Board against Albertsons and Smith’s in early June, alleging the companies violated federal labor laws by colluding with one another to negotiate without the union’s consent. The union, which represents more than 3,700 employees from both grocery chains, also claimed the businesses failed to address grievances that arose under the old union contracts and refused to provide the union with required information for negotiations.

Albertsons spokesperson Abie Rampy did not address the collusion allegations in a June statement to the Journal, but said the company respects “the rights of workers to engage in collective bargaining” and remains “committed to negotiating in good faith.”

Rampy did not respond to an email about the new union contract.

Tina Murray, spokesperson for Kroger — the company that owns Smith’s — called the allegations of unfair labor practices “unfounded” in a statement last month and said this week the new union contract provides employees with “meaningful” wage and benefit changes.

“The newly approved agreements reflect our ongoing commitment to our associates, who are the heart of our business,” Murray said.

Grocery workers at Kroger and Albertsons subsidiaries King Soopers and Safeway in Colorado went on strike this year amid stalled contract negotiations and allegations of unfair labor practices.

Kroger had planned to purchase its rival Albertsons for nearly $25 billion in what would have been the biggest grocery store deal in U.S. history, until two separate judges blocked the merger last December. Both companies have since filed lawsuits against each other.

Carl Trujillo, a meat cutter at Smith’s in Santa Fe, said the company insinuated to employees that it couldn’t meet the union’s demands because the failed merger had affected its finances.

“It was kind of frustrating on our end to be hearing that,” Trujillo said. “We, as employees and as union brothers and sisters — we had nothing to do with any of that.”

Trujillo said the wage increases will provide him and his coworkers with more peace of mind during a time of rising costs and economic uncertainty.

“Now that we got a raise, and now that we’re able to see a little bit more money in our pocket, it just gave us a little more security, as far as being able to purchase groceries or rent and gas and all that kind of stuff,” he said.