FAQ: Answering the Questions You are Asking

We will continue to keep you updated on contract negotiations. Be sure to connect with your store leader about any questions you may have. You can also send any questions you have to [email protected].

1. Why does Fred Meyer refuse to bargain all areas at one formal bargaining table as we have done for years?

• Our time is best spent focusing on you and the unique communities you serve. Just as our stores cater to the specific needs of each neighborhood, our approach to your labor contract should be just as local and personalized—not a one-size-fits-all solution.
• We bargain all Fred Meyer and QFC contracts as required by law, but there may be differences between bargaining units, based on the needs of the business, location, and our associates. We have provided the union with available bargaining dates in September and October because we are eager to invest in your wages and benefits.
• We hope the union will schedule meeting dates soon, and we will update you when those are confirmed.

2. Why did Fred Meyer not present updated proposals to the bargaining committee on wages, healthcare, and retirement when it met with the union last week?

• Fred Meyer and the union had scheduled negotiations for September 11 and 12; however, the union submitted its latest counterproposal late Thursday and wanted to end negotiations at 4:30 p.m. Their counter did not include proposals on wages, healthcare, or retirement benefits.
• Our focus in these negotiations is to ensure market-competitive wages and benefits for you.
• The company is carefully reviewing the union’s counterproposal and will provide a response at the next scheduled bargaining session.

3. Why does the Company not consider the cost of living in Portland with its proposals.

• When reviewing wages, we consider both the cost of living, and the hourly wages paid by our competitors to develop our wage proposal.
• Our initial offer was based on thorough market research and is a historical offer.
• Currently, the average hourly rate for Fred Meyer associates in Portland is $20.98, which exceeds the average hourly wage for retail cashiers in Oregon ($16.53) and in Portland ($17.38), as reported by the U.S. Bureau of Labor Statistics.

4. Why did Kroger admit to price gouging in court without passing those profits on to associates?

• This cherry-picked email covers a specific period and does not reflect Kroger’s decades-long business model of lowering prices for customers by reducing its margins.
• What’s missing is the fact that Kroger’s retail prices include the costs of running a grocery store, including labor, transportation, advertising, and other expenses. Many of these costs have significantly increased since 2020.
• Kroger’s pricing decisions are impacted by factors beyond inflation. We work relentlessly to keep prices as low as possible for customers in our highly competitive industry. This is especially true for essential products like milk and eggs. Since 2020, these commodities saw significant cost fluctuations for a broad range of products.
• Despite these challenges, Kroger has maintained competitive pricing for milk and eggs, especially compared to Walmart.
• Reducing margins to lower prices over time so more customers shop with us is our business strategy, and it’s the strategy we will implement at Albertsons after our merger.

5. When are the company and union meeting again to negotiate the contract?

• The company has offered multiple dates in September and October for continued contract negotiations.
• We are currently waiting for the union to confirm their availability.
• We encourage the union to meet with us as soon as possible to reach a fair agreement that ensures market-competitive wages and benefits for our associates while also keeping groceries affordable for our customers