Union officials announced Friday that grocery workers across New Mexico have ratified new four-year contracts with Albertsons and Smith’s Food and Drug Stores, securing wage increases and stronger benefits.
The agreements, approved by members of United Food and Commercial Workers Local 1564, cover approximately 3,700 workers statewide — 2,500 at Smith’s stores and 1,200 at Albertsons locations. The contracts include annual wage increases, improved paid time off policies and enhanced retirement benefits.
“I’m proud of all UFCW 1564 members for ratifying this strong new contract,” said Greg Frazier, president of the union, in a statement released by the organization. “They held tough and stayed united throughout our negotiations with Albertsons and Smith’s. By using their voices and power, they won the wage increases and benefits that they deserve.”
The contracts emerged from contentious negotiations that began in May and nearly led to strikes at both grocery chains. In June, 97% of union members voted to authorize strikes, citing unfair labor practices. The companies reached tentative agreements just before the June 28 deadline.
Anthony Carl Trujillo, a meat cutter at Smith’s in Santa Fe who served on the union’s bargaining committee, said the contract addresses workers’ concerns about rising costs of living.
“People are worried about the high cost of living, I hear that from both our members and from our customers,” Trujillo said in the union’s statement. “I’m excited we were able to secure more money for our members in this contract, so they can have more security and peace of mind.”
The new contracts guarantee wage increases every year over the four-year term for workers across all job classifications. The agreements also include improved vacation and paid time off policies that allow workers to receive payment for unused vacation time at year’s end.
The contracts also include improvements to retirement benefits and, for Albertsons workers, a new process for accessing additional work hours when available.
“We’re focused on reaching a balanced agreement—one that increases wages for our associates while keeping groceries affordable for New Mexico families,” Smith’s said in an earlier statement during negotiations.
The ratification votes concluded Thursday, with union members voting by secret ballot over two weeks. The contracts take effect immediately and run through 2029.
The successful negotiations come as grocery workers nationwide have been pushing for better wages and working conditions. The agreements also follow the recent collapse of a proposed merger between Kroger, Smith’s parent company, and Albertsons, which was blocked by federal courts in December 2024.
UFCW Local 1564 represents workers at grocery stores across New Mexico, including Smith’s, Albertsons, Safeway and other retailers. The union’s membership includes workers in both retail and meat department divisions.
The contracts mark the end of a challenging negotiation process that began in late spring and included the filing of unfair labor practice charges with the National Labor Relations Board. Union officials said both companies have agreed to withdraw those charges as part of the final agreements.