The United Food and Commercial Workers (UFCW) local unions have called for the immediate removal of Kroger CEO Rodney McMullen. This demand follows Kroger’s abrupt announcement of a $7.5 billion stock buyback after its failed merger with Albertsons.
Union leaders criticized McMullen’s decision, labeling the buyback a short-term strategy to appease shareholders at the expense of customers and workers.
Massive Buyback Overshadows Promised Investments by Kroger CEO
During the merger negotiations, Kroger pledged significant investments in consumer price reductions and employee wages. However, the stock buyback dwarfs these commitments, fueling union frustration.
“At a time when stores need repairs and staffing, it’s outrageous for McMullen to announce a giveaway to shareholders,” said Kim Cordova, UFCW Local 7 president.
Unions Cite Missed Opportunities to Build Market Share
During trials to block the merger, Kroger highlighted threats from competitors like Walmart, Amazon, and Costco. Yet, critics argue that McMullen chose a $7.5 billion payout instead of addressing these challenges.
“This money could have gone to lower prices, higher wages, or new stores,” said Kathy Finn, UFCW 770 president. “Instead, it’s being used to save McMullen’s job.”
According to UFCW estimates, the buyback funds could have funded Kroger’s construction of 280 new stores, remodeling of over 3,200 existing locations, or discounts for loyal shoppers.
Related Article: Kroger Terminates Albertsons Merger, Boosts Share Buyback
Union Leaders Demand Change of Kroger CEO
Union officials pointed to McMullen’s track record, including staffing cuts and the failed $1 billion Ocado warehouse initiative, as evidence of mismanagement.
“As the leader of a union representing 11,700 Kroger workers, I don’t make this demand lightly,” said Faye Guenther, UFCW 3000 president. “McMullen has mismanaged this company. It’s time for him to go.”
Focus on Future Investments and Growth
Union leaders emphasized Kroger’s role in communities and its responsibility to address consumer and worker needs. They urged the company to redirect funds toward store improvements, lower prices, and competitive wages.
“These billions could reduce food deserts, improve service, and strengthen the supply chain,” Finn said. “This money isn’t McMullen’s to use as a personal piggy bank.”
The UFCW’s unified demand for new leadership underscores growing discontent with Kroger’s current direction. As competition in the grocery sector intensifies, the unions argue that only a bold shift in strategy can secure the company’s future.