The Impact of Corporate Mergers on Grocery Workers: Leonard De Monte’s Story

Leonard De Monte’s Journey Through Corporate Change

In 2015, Leonard De Monte felt a sense of stability in his life. At the age of 31, he had secured health insurance and was earning a union wage at Vons grocery store located in Woodland Hills, California. Having dedicated over a decade to the bakery section, he developed strong relationships with many regular customers, often remembering their favorite orders.

However, everything changed with a corporate merger. Albertsons, the parent company of Vons, acquired its rival Safeway, resulting in significant shifts within the organization. As part of this transaction, Mr. De Monte’s store was sold to a different chain, and shortly after, that new owner declared bankruptcy. Suddenly, Mr. De Monte found himself without a job.

Fortunately, former customers who recognized his dedication came forward to support him, helping him secure a new position at a local Pavilions, another grocery chain under the Albertsons umbrella. Unfortunately, the change meant he lost his seniority and had to start anew at minimum wage. Mr. De Monte reflected on this transition, stating, “All my hard work was flushed down the toilet.”

Fast forward nearly a decade, and Mr. De Monte, now almost 10 years older and having worked his way back up to an impressive wage of nearly $27 per hour, finds himself in a landscape of uncertainty once again. Albertsons is currently pursuing a merger with Kroger in a monumental deal worth $24.6 billion, which, if approved, would mark the largest grocery combination in history. To appease antitrust regulators, both chains have agreed to divest 579 stores out of their approximately 5,000 locations, and regrettably, the Pavilions where Mr. De Monte is employed is included on that list.

The anxiety surrounding mergers is palpable among workers, as they often face the threat of job losses or diminished benefits due to corporate consolidations. The United Food and Commercial Workers International Union (U.F.C.W.), which represents most of the in-store employees at both Kroger and Albertsons, has publicly opposed the proposed merger, though its power to halt the deal is limited.

Nevertheless, the union has a significant ally in this battle: the Federal Trade Commission (FTC). The agency has initiated a lawsuit to block the merger, and a trial to determine whether the two grocery giants can join forces is set to commence in federal court in Oregon on Monday.