rich 1.0 Action Network https://actionnetwork.org <link href='https://actionnetwork.org/css/style-embed-v3.css' rel='stylesheet' type='text/css' /><script src='https://actionnetwork.org/widgets/v6/letter/thank-biden-for-stopping-albertsons-kroger-merger?format=js&source=widget'></script><div id='can-letter-area-thank-biden-for-stopping-albertsons-kroger-merger' style='width: 100%'><!-- this div is the target for our HTML insertion --></div> More Perfect Union https://actionnetwork.org/groups/more-perfect-union https://can2-prod.s3.amazonaws.com/share_options/facebook_images/000/464/048/original/GroceryPrices_(raw).jpg This week, President Biden’s Federal Trade Commission (FTC) announced it is suing to block the proposed mega-merger of grocery giants Kroger and Albertsons. Whether you shop at Safeway, Ralphs, Vons, Pavilions, Fry’s, QFC, Smiths, Harris Teeters, Shaws, Kings, Randalls, or any one of about 20 other brands, any grocery store you enter is likely to be owned by Kroger or Albertsons. If the merger goes through, the combined operation would include over 5,000 stores, about 4,000 pharmacies, and almost 700,000 employees, across 48 states. The proposed nearly $25 billion merger between the nation’s second and fourth largest grocery chains would consolidate over 15% of the U.S. market, compared to Walmart’s 27% and Costco’s 9%. The elimination of vigorous competition would drive up prices for consumers, and drive down wages for workers. This FTC antitrust lawsuit is a big deal. As it goes to U.S. District Court, the FTC’s action sets a precedent that could help shape antitrust efforts across the U.S. for years to come. You deserve thanks and congratulations! The Biden administration is taking these steps now largely because with your help, we took action. Working with our partners, we sent 92,021 direct messages to the FTC calling on the Biden administration to act. We can see the result. If approved, the merger would create the largest unionized corporation in the country, and there is cause for concern that it would use that power against workers. When Kroger’s profits surged up 90% during Covid, Kroger’s cost savings from layoffs went not to workers, but to rich executives and shareholders. The company gave “essential workers” a temporary $2/hour raise, but canceled it after just 6 months, then held two separate billion dollar stock buybacks from shareholders to artificially boost the stock’s value. Meanwhile, according to a study by Business Insider, 75% of Kroger employees reported having experienced food insecurity, and with a minimum wage that is still below a living wage, 14% reported having experienced homelessness. Further reducing workers’ choice of employers would jeopardize their ability to organize for better wages, benefits, and working conditions. Despite the illusion of a diverse market given by the variety of grocery store brand names, the merger would mean fewer choices for consumers as well. The loss of competition, at a time when both consumer costs and corporate profits are at record highs, would lead to still higher prices as well as lower quality products. As Kroger CEO Rodney McMullen infamously said, "A little bit of inflation is always good in our business." In fact, Kroger gouged consumers during the Covid shutdown, as 54 cents of every extra dollar the grocer charged went straight to profit. Fortunately, FTC Chair Lina Khan understands the problem. With President Biden’s support, she is leading the way to enforce antitrust law and break up mergers, while fostering the growth of cooperative, employee- and family-owned local groceries that serve diverse regional populations. Your messages made a huge impact. Now click ‘START WRITING’ to send a thank you to President Biden and FTC chair Lina Khan for working to protect workers, consumers and the economy by stopping the Albertson-Kroger mega-merger now. https://actionnetwork.org/letters/thank-biden-for-stopping-albertsons-kroger-merger