Freedom of association and collective bargaining are fundamental human rights under internationally recognized human rights frameworks. The United States has seen a “revival of union power” leading to significant changes in employee contracts in multiple industries.[1] A Gallup poll found that almost 70 percent of Americans approve of unions, this support has held steady for the last five years and is the highest approval rating of 60 years.[2],[3]

Should The Kroger Co. (Kroger) brand be linked to poor union practices, it risks losing customers. Moreover, the presence of unions has been positively correlated with low turnover, improved diversity, investment in training, and reduced legal and regulatory violations.[4] Conversely, companies that actively oppose unionization experience declines in productivity relative to those that are less opposed; “the overall negative effects are driven by manager’s or owner’s dislike of working with unions rather than economic costs of unions.”[5]

Kroger’s Human Rights Policy states “We commit to the corporate responsibility to respect human rights as defined by the United Nations Guiding Principles on Business and Human Rights (UNGPs). We also commit to respect internationally recognized human rights as defined by . . . [t]he ILO Declaration on Fundamental Principles and Rights at Work.” Kroger also commits to “embed this Human Rights Policy in our company’s culture, operations and supply chain, conduct human rights due diligence, and provide access to remedy as appropriate.”[6]

The last clear update to this policy was in 2022, and the last progress update to its “Commitment to Respect Human Rights” was for fiscal 2021.[7]

Despite its stated commitments, in the Richmond and Tidewater areas in Virginia, it has been alleged that Kroger is refusing to recognize unions at 11 stores, despite a majority of associates at these stores having agreed to unionization. The local labor union, UFCW Local 400, believes that the company has engaged in an effort to keep the union out of new stores, in violation of the collective bargaining agreement they have in place. Concerns have also been raised that Kroger has closed union stores and replaced them with non-union stores.

Given this inconsistency, a review is requested of the company’s implementation of its stated policies. This would provide investors with greater confidence that Kroger is appropriately managing its relationship to labor.

[1] https://hbr.org/2023/10/are-we-seeing-a-revival-of-union-power

[2] https://www.afge.org/article/new-gallup-poll-70-of-americans-approve-of-labor-unions/

[3] https://news.gallup.com/poll/694472/labor-union-approval-relatively-steady.aspx

[4] https://www.workerscapital.org/our-resources/shared-prosperity-the-investor-case-for-freedom-of-association-and-collective-bargaining/

[5] https://www.census.gov/content/dam/Census/newsroom/press-kits/2023/assa/unionization-employer-opposition-preview.pdf , p.3

[6] https://www.thekrogerco.com/wp-content/uploads/2022/02/Kroger-Human-Rights-Policy-Feb-2022.pdf?utm_source=chatgpt.com

[7] https://www.thekrogerco.com/wp-content/uploads/2022/02/Kroger-Human-Rights-Progress-Update-Policy-Feb-2022.pdf?utm_source=chatgpt.com