Trucking company layoffs after Kroger contract ends

Cardinal Logistics Management Corp. said more layoffs will occur December 2nd.

A transportation and logistics company laid off 69 people this year after losing a contract with Kroger, and there are more layoffs on the way.

Kroger is a Cincinnati based company. Kroger is the third-largest retailer in the world and the second largest private employer in the United States.

Cardinal Logistics Management Corp. said more layoffs will occur December 2nd, according to The Roanoke Times. It is unclear at this time where the layoffs will occur.

The company stated, “[we have] experienced an unexpected termination of a major business contract, causing a substantial reduction in business that will result in a mass layoff.”

On Tuesday Kroger commented, “a business decision not to move forward with one of its current contract carriers that deliver[s] products to our stores.”

Most employees losing their jobs will be truck drivers.

Jeff Stupp, a general counsel at Cardinal, said that the company will make efforts to reassign the drivers to other positions.

Kroger said workers displaced from their jobs by the contract change “may apply to the carrier that received the additional work.”

Kroger has not yet released what company will be taking over the contract.

Just yesterday, it was reported by the Cincinnati Business Courier that Kroger stock surged as investors weighed rumors that Kroger might be looking to make a major acquisition.

A similar situation has also come to light Monday evening as 50 Kroger store employees from southern West Virginia rallied together in front of their store. They gathered to send Kroger a message about its soon expiring contract with the United Food and Commercial Workers (UFCW) Local 400.

According to WV Metro News, this contract is set to end Saturday, October 7 at midnight. If the union and Kroger do not make another agreement to move forward together, approximately 4,200 union employees across West Virginia, Kentucky and Ohio could lose their benefits.

Kroger commented, ““We are confident, if both parties stay focused on having productive dialogue at the table, we can reach an agreement that is good for our associates and right for our business.”

Further, “Kroger’s goal is to provide our associates a competitive and solid compensation package of pay and benefits. That includes affordable health care and pension to provide our associates a secure retirement.”

Whether or not these new developments involving Kroger are related is unclear at this time.