During Kroger’s annual meeting last week, shareholders voted against a proposal that could have secured higher wages for hundreds of thousands of workers employed by the grocery giant. The majority of shareholders—about 83%—ultimately rejected the proposal, which was brought by a trio of activist investors and urged the company to pay workers a living wage that would provide the “minimum earnings necessary to meet a family’s basic needs.”
This year, Target and Walgreens have faced similar proposals pushing for living wage policies, both of which were also struck down when put to a vote. At Kroger, however, the proposal comes amid the company’s planned acquisition of Albertsons, which has sparked resistance from workers and union members who worry the merger could drive down wages and lead to job losses. (Kroger did not immediately respond to a request for comment.)
In a lawsuit to block the deal, the Federal Trade Commission also argued that the merger could make it more difficult for unionized workers to negotiate higher pay. (Several states have either joined the FTC lawsuit or filed their own suits in response to the proposed merger.)
In 2023, Kroger increased average wages for its associates to about $18 an hour. But tools from the Massachusetts Institute of Technology and the Economic Policy Institute indicate that a living wage can be significantly higher depending on location and family structure.
