Kroger Reaches Tentative Labor Agreement with Southern California Workers, Averting Strike

The Kroger Co. (NYSE:KR) is one of the most undervalued NYSE stocks to buy now. On July 8, Grocery Dive reported that the labor unions representing 45,000+ employees of Kroger and Albertsons in Southern California reached a tentative agreement on a new contract. The announcement was made last week by the United Food and Commercial Workers/UFCW locals involved in the bargaining process.

The proposed deal is subject to worker approval and includes provisions for higher pay, increased pension contributions, and improvements to health benefits. Workers are scheduled to vote on this proposal over three days beginning on July 9. The agreement followed 40+ hours of negotiations between the grocers and UFCW Locals 135, 324, 770, 1167, 1428, and 1442.

The breakthrough came weeks after these grocery workers had voted to authorize an unfair labor practice/ULP strike. The strike authorization was a response to what UFCW Locals 324 and 770 described as “labor violations throughout negotiations.” Specifically, a June 27 statement from UFCW Local 770 alleged that Kroger and Albertsons had broken the law by surveilling and interrogating employees.

The Kroger Co. (NYSE:KR) is a food and drug retailer in the US.

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Disclosure: None. This article is originally published at Insider Monkey.