The United Food and Commercial Workers Union (UFCW) Local 1564, which represents thousands of grocery store employees in New Mexico, announced Monday afternoon that it has reached a deal on a new contract with Smith’s just days after 97% of its members at Albertsons and Smith’s Food and Drug Stores approved a strike authorization.
The Smith’s agreement requires a vote by union members before it becomes official. If it does, the preliminary deal would be for four years and raise wages by about $1 per hour for retail and meat workers
The union plans to work with Albertsons later this week to reach a similar deal.
Last week, workers at Albertsons and Smith’s locations in Albuquerque authorized the strike based on Unfair Labor Practice (ULP) charges brought by the union earlier this month, citing ongoing contract disputes and alleged violations of labor law.
The vote followed formal charges filed by the union earlier this month, accusing both companies of delaying grievance and arbitration processes, withholding key bargaining information and colluding during negotiations.
“Our hard-working members love their customers,” said UFCW Local 1564 President Greg Frazier in a written statement. “They know them personally and every day they help them put food on the table. Our members shouldn’t have an expiring contract hanging over their heads as they do their jobs. They don’t want to strike, but they’re ready to if they don’t get the respect at the negotiating table that they deserve.”
The current contracts with Albertsons and Smith’s expired June 15 but have been temporarily extended through June 28 while union and company representatives continue negotiations.
UFCW Local 1564 represents approximately 2,500 Smith’s employees and 1,200 Albertsons workers across the state, including locations in Albuquerque with 14 Smith’s stores and 10 Albertsons.
The union had also criticized a previously proposed merger between Kroger, Smith’s parent company, and Albertsons.
The deal was blocked in 2022 by the Federal Trade Commission, with a federal court later upholding the decision.
UFCW Local 1564 opposed the merger, citing concerns about worker protections and market consolidation.
“We want to negotiate and come to an agreement, but we can’t do that if the employers are playing games. By sending this powerful message to both Albertsons and Smith’s, UFCW 1564 members are making clear that it’s time to negotiate in good faith and they’re united in that stance,” Frazier added.
UFCW Local 1564 is part of the UFCW International, the largest private-sector union in the U.S., representing 1.2 million workers across industries including grocery, retail, food processing and healthcare.
The union said it would withdraw its unfair labor practice charges against Smith’s after agreeing to the deal Monday but keep them in place against Albertsons.
For more information, visit www.my1564.com. Details on the 2025 negotiations can be found here.