A report from the Economic Policy Institute reveals the deal could lead to lower grocery store employee wages.
The report finds the merger could lower wages for over 746,000 grocery store workers in about 50 cities across the country. The total annual loss of wages would be $334 million or an average loss of about $450 per year in wages for workers.
Ben Zipperer, an economist at the Economic Policy Institute, attributes the loss to the increasing trend of concentration among grocery store chains. This trend has led to a decrease in competition, which has allowed grocery store chains to raise prices and reduce wages.
“They will have fewer options. They have or will have less leverage in negotiating, better pay, better working conditions and so forth,” Zipperer said. “And so what that means is that wages tend to get depressed in those kinds of markets where there’s a lot of employer concentration.”