Sen. Smallwood-Cuevas Joins Grocery Workers to Support Protective Bill Package
Senator Lola Smallwood-Cuevas (D-Los Angeles) today joined grocery store workers from across California who traveled to the State Capitol to rally in support of a suite of bills that would address the harmful effects of grocery mergers. This comes on the heels of a proposed deal between Albertsons and Kroger – the nation’s two largest grocery store chains with an outsized presence in California – to ink a $24.6 billion merger.
“The astronomical cost to grocery workers of the proposed Kroger-Albertsons merger is a reminder that we have a responsibility to protect the communities we represent through public policy,” said Senator Smallwood-Cuevas. “That is why I am proud to author SB 725, which institutes a mandatory severance pay for workers who are laid off due to a grocery merger or acquisition. It sends a clear message that we will not allow grocery companies to enrich themselves on the backs of their employees.”
Like countless merger deals before it, this mega-merger will rob workers of hundreds of millions in annual earnings to enrich corporate executives. In California alone, the Kroger-Albertsons merger is expected to create a $103 million loss in annual earnings for more than 210,000 workers. That’s a significant loss at a time when the vast majority of grocery workers are struggling to put food on the table and pay the rent amid inflated costs with low emergency savings.
“In my 30-plus years in the grocery industry, I have seen firsthand how mergers can hurt workers, their families and local communities,” said Mark Ramos, President of the United Food and Commercial Workers (UFCW) Western States Council and UFCW Local 1428. “Some lose their jobs, and those lucky enough to still have a job are often forced to travel long distances to work at a new store. Communities lose a reliable source of fresh food. California lawmakers must take action to protect grocery workers, pharmacy workers and the communities they serve by passing this important legislative package."
This bill package contains three critical pieces of legislation:
- SB 725 (Sen. Smallwood-Cuevas) – Safety Net for Grocery Workers Act
Requires a grocery establishment that conducts layoffs as a result of a merger or acquisition to provide workers with one-week severance pay for every year of service.
- AB 853 (Asm. Maienschein) – Californians’ Right to Know on Essential Goods and Services
Requires grocery or drug-retail companies to provide 180 days notice in advance of finalizing a proposed merger and an impact report on wages, benefits, food access, and more.
- AB 647 (Asm. Holden) – Grocery Worker Protection Act
Ensures workers keep their jobs and seniority in case of store closures due to a merger.
“Powerful grocery companies shouldn’t be able to finalize harmful merger deals behind closed doors,” said Assemblymember Brian Maienschein. “AB 853 gives workers much needed time to respond to a proposed merger or acquisition by requiring grocery companies to give six months notice, shining a light on deals that could cause harm to workers, their communities and small businesses.”
“As a 55-year-old less than two years from retirement, a grocery chain merger could completely upend my life and the lives of hundreds of thousands of workers,” said Robert Launius, a meat cutter for Gelson’s. “When chains merge, stores close. Workers get laid off. We shouldn’t have to live in fear of losing our jobs. California must pass these bills to make sure workers like me aren’t caught in the crossfire of the next major grocery merger.”
“In the wake of a merger, corporate profits soar while workers suffer pay cuts and job loss, leaving workers struggling to pay for basic necessities, like food and rent,” said Christopher Sanchez, Policy Advocate for Western Center on Law and Poverty. “Workers, who are the backbone of California’s economy, deserve a safety net to protect them from harmful mergers. Our communities deserve better than being left to suffer the consequences of a merger that will create food insecurity for many who already struggle to access nutritious food. The Legislature should waste no time in passing AB 853, AB 647 and SB 725.”
Senator Lola Smallwood Cuevas represents the 28th Senate District, which includes the communities of South Los Angeles, Culver City, West Los Angeles, Century City and Downtown Los Angeles. Senator Smallwood-Cuevas spent more than two decades serving as a labor organizer, civil rights activist and community advocate before her election to the State Senate. She resides in the View Park community of Los Angeles with her family.
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