Like many others his age, Lopez worked more than half his life under the impression that his remaining years would be funded by a retirement plan or pension. Union officials fear that the potential merger between grocery giants Kroger and Albertsons could endanger the pensions — and livelihoods — of retirees just like him.
United Food and Commercial Workers Local 7, a Denver-based union that is one of the largest private-sector worker reps in Colorado, manages a large pension fund that is paid out to any union grocery store employee who has been part of Local 7 for at least five years and is now retired. The amount that is paid out goes up the longer someone works and remains a union member.
The pensions are funded by the owners of the unionized grocery stores, which are made up of various companies and chains throughout the state and up into Wyoming. Per the union contracts, each company pays a certain amount into the fund on behalf of their employees for every hour that an employee works.
The concern with the Kroger-Albertsons merger, according to Local 7 president Kim Cordova, is that it will result in a significant amount of store closures, meaning there will be a drastic reduction in the amount of workers contributing to the pension fund.
"I can't afford to lose any of the money or any of the benefits," Lopez says. "It would be devastating."
"I would think that there's a lot more members that are retired that the effect [of the merger] would be a lot more devastating to them," he notes. "I would never want anybody to think that I'm an old man crying for more and more. I'm fighting for what I earned and for what is right."
The risk to retirees is yet another concern in a long list of issues that communities and leaders from the state and country at large have with the merger, including threats to a significant number of jobs and higher grocery prices as a result of decreased competition among grocers.
Kroger announced its intention to purchase Albertsons in a $24.6 billion deal in October 2022. The deal, which would close in early 2024, has caused an outcry from hundreds of community organizations and unions, which banded together into a unified opposition group called Stop the Merger back in March.
According to Stop the Merger, Kroger would become the largest supermarket by revenue in the country if the deal — which has caught the attention of the Federal Trade Commission — goes through. Colorado Attorney General Phil Weiser is currently on a statewide listening tour to hear community concerns about the merger, while weighing whether to take action to block it from going through.
According to the attorney general's website, "Kroger operates 148 stores in Colorado under the King Soopers and City Market banners; and Albertsons operates 105 stores under the Safeway and Albertsons banners."
On its website, Kroger claims it "will not close any stores, distribution centers or manufacturing facilities or lay off any frontline associates as a result of the merger." However, Cordova claims that history tells another story.
"The employers won't do the right thing," she asserts.
Axios reports that Americans retiring now are the first generation to do so without pensions. But for people of Lopez's age, pensions have always been the norm.
United Food and Commercial Workers Local 7, a Denver-based union that is one of the largest private-sector worker reps in Colorado, manages a large pension fund that is paid out to any union grocery store employee who has been part of Local 7 for at least five years and is now retired. The amount that is paid out goes up the longer someone works and remains a union member.
The pensions are funded by the owners of the unionized grocery stores, which are made up of various companies and chains throughout the state and up into Wyoming. Per the union contracts, each company pays a certain amount into the fund on behalf of their employees for every hour that an employee works.
The concern with the Kroger-Albertsons merger, according to Local 7 president Kim Cordova, is that it will result in a significant amount of store closures, meaning there will be a drastic reduction in the amount of workers contributing to the pension fund.
"All of the money that comes in is so important," Cordova says.
She recalls how the 2008 financial crisis once put the Local 7 pension fund into "critical status." Active retirees at that time didn't lose benefits, but future retirees took a big hit on their pension plan. Now, Cordova says, "if this mega merger results in hundreds of stores closing or thousands of workers losing their jobs, it would quickly throw us back into critical status.
"It will affect thousands of people," she adds.
Other than a stint in the Army during the Vietnam War, Lopez has lived in the Denver area all his life. He spent his entire 42-year career — between 1963 and 1995 — working in grocery stores, and has been an active member of Local 7 since 1964.She recalls how the 2008 financial crisis once put the Local 7 pension fund into "critical status." Active retirees at that time didn't lose benefits, but future retirees took a big hit on their pension plan. Now, Cordova says, "if this mega merger results in hundreds of stores closing or thousands of workers losing their jobs, it would quickly throw us back into critical status.
"It will affect thousands of people," she adds.
"I can't afford to lose any of the money or any of the benefits," Lopez says. "It would be devastating."
Lopez recently spoke at a mayoral forum hosted by Coloradans for the Common Good on May 25 about his history as an active union member. "I have participated in every contract negotiation to date," he said. Not only has he fought — and now must continue to fight — for his own benefits and pension, but he has continued to participate in strikes and stand on picket lines with people who are still working.
"I would think that there's a lot more members that are retired that the effect [of the merger] would be a lot more devastating to them," he notes. "I would never want anybody to think that I'm an old man crying for more and more. I'm fighting for what I earned and for what is right."
The risk to retirees is yet another concern in a long list of issues that communities and leaders from the state and country at large have with the merger, including threats to a significant number of jobs and higher grocery prices as a result of decreased competition among grocers.
Kroger announced its intention to purchase Albertsons in a $24.6 billion deal in October 2022. The deal, which would close in early 2024, has caused an outcry from hundreds of community organizations and unions, which banded together into a unified opposition group called Stop the Merger back in March.
According to Stop the Merger, Kroger would become the largest supermarket by revenue in the country if the deal — which has caught the attention of the Federal Trade Commission — goes through. Colorado Attorney General Phil Weiser is currently on a statewide listening tour to hear community concerns about the merger, while weighing whether to take action to block it from going through.
According to the attorney general's website, "Kroger operates 148 stores in Colorado under the King Soopers and City Market banners; and Albertsons operates 105 stores under the Safeway and Albertsons banners."
Cordova explains that right now, many Kroger-owned stores like King Soopers operate in very close proximity to Albertsons-owned grocery stores like Safeway. To cut costs, she feels confident that Kroger will close and consolidate many of those currently competing stores.
On its website, Kroger claims it "will not close any stores, distribution centers or manufacturing facilities or lay off any frontline associates as a result of the merger." However, Cordova claims that history tells another story.
"The employers won't do the right thing," she asserts.
After a merger between Safeway and Albertsons in 2015, "43 stores closed" in Colorado, according to Cordova. The Denver Post reported that nine of those closures were in the metro area.
Cordova believes that Kroger is likely to give preference to closing unionized stores when another, non-union store is nearby. "We believe they've been on a path to be union-free," she warns.
In a statement to Westword, a spokesperson for Kroger did not address the concerns around retirees, but did say, "The proposed merger with Albertsons Co. will benefit our customers, our associates and our communities. Our customers will experience lower prices and more choices as we bring high-quality, affordable food to more people. Our associates will have even more opportunities to grow their careers with Kroger. And we will bring our vision of zero-hunger communities to life in more places, supporting healthy, thriving neighborhoods."
Cordova believes that Kroger is likely to give preference to closing unionized stores when another, non-union store is nearby. "We believe they've been on a path to be union-free," she warns.
In a statement to Westword, a spokesperson for Kroger did not address the concerns around retirees, but did say, "The proposed merger with Albertsons Co. will benefit our customers, our associates and our communities. Our customers will experience lower prices and more choices as we bring high-quality, affordable food to more people. Our associates will have even more opportunities to grow their careers with Kroger. And we will bring our vision of zero-hunger communities to life in more places, supporting healthy, thriving neighborhoods."
Axios reports that Americans retiring now are the first generation to do so without pensions. But for people of Lopez's age, pensions have always been the norm.
Cordova explains that in a situation where a union's pension fund loses money, a federal agency called the Pension Benefit Guaranty Corporation is supposed to step in and supplement funding. According to her, however, "There's not enough money in that fund."
Cordova adds that a Bush-era law called the Pension Protection Act of 2006 allows regulators to restrict pension benefits, and the Kroger-Albertsons merger would make things even worse.
A representative from PBGC tells Westword that the agency "does not provide comment on ongoing plans."
Cordova adds that a Bush-era law called the Pension Protection Act of 2006 allows regulators to restrict pension benefits, and the Kroger-Albertsons merger would make things even worse.
Disabled workers and retirees are especially vulnerable, she says, noting that "these grocery stores do hire a lot of folks with disabilities."
Haven Rohnert — who has worked at a Safeway in Denver for fifteen years and experiences cognitive issues related to epilepsy — has spoken out against the merger to both the FTC and to Attorney General Weiser. He tells Westword: "While aging can hold uncertainty for anyone, it is especially true for people with disabilities. Even though I plan on working through retirement, I may not be able to, and the pension I have worked for may be a crucial part of my survival. This merger creates even more uncertainty in our lives."
