Bargaining Total Compensation

Today, Kroger shared an improved economic proposal with UFCW Local 400 as new contract discussions continued for Stores 524, 542, 554, 577 and 580. We’re proposing each store have the opportunity to bargain for terms that are right for them. Each store would have its own three-year agreement upon ratification.

Before organizing, associates at these five stores received merit-based wage increases annually. The company’s proposal would move associates off that system and onto the Richmond-Tidewater contract’s three-step wage scale, which is based on hours worked.

How the proposed transition would work:
Step 1 of scale is for associates at entry rate. Movement through the steps is based on hours worked, with Top Rate at Step 3.

• Eligibility is set by service time. Associates with less than 2 years of service as of October 1, 2026 (and averaging 36+ hours/week) would be eligible for Step 2. Associates with more than 2 years would be eligible for Step 3.
• A measurement period determines final placement. For associates who don’t immediately qualify for Step 2 or 3, a measurement period runs from roughly October 1, 2026 to October 1, 2027, after which they’re placed on the scale based on that year’s hours.
• No one takes a pay cut. Associates currently earning above the applicable step keep their current rate — it doesn’t drop to meet the scale.
• Associates below Step 1 would move to Step 1 on 1/1/2027
• Associates Above Step 3 Receive Lump Sum on January 1, 2027 ($200 part-time / $400 full-time)
  Above-scale pay is red-circled, until the Richmond-Tidewater rate exceeds it.

Healthcare, Retirement and Paid Time Off
Your total compensation is more than the number on your paycheck. Two of the biggest investments Kroger makes in you–healthcare and pension–work quietly in the background, protecting your income and retirement, but barely get noticed on your check stub. Here’s how our improved economic offer addresses healthcare and pension:

• Healthcare:Associates would remain on the current Kroger company plan for healthcare benefits through the end of 2027, then transition to the Company-funded Heartland Health and Welfare plan effective January 1, 2028.
• Retirement:Associates would become eligible for the company-funded Kroger Consolidated Pension as early as January 1, 2027, pending trustee approval.
• Paid time off:Current vacation and sick-day accrual would end December 31, 2026. Personal days and vacation accrual under the Richmond-Tidewater structure would begin January 1, 2027.

The bottom line: Our offer gives associates in Stores 524, 542, 554, 577 and 580 the opportunity for a greater voice in deciding their first contract. This improved economic offer provides single store agreements giving associates in each store the opportunity to ask the union to bargain for what matters most to them.

What Happens Next

• Bargaining continues October 5–7.
• Updates will be posted on KrogerMidAtlanticCBA.com and shared in huddles.
• Questions? Talk to your store leader or visit the website’s Contact page.