130 truckers & mechanics to be laid off in AZ after failed Teamsters negotiations with Kroger

130 truck drivers and mechanics will lose their jobs by the end of the summer after failed Teamsters negotiations with Kroger led to a cancelled contract. 

Vice President of of Teamsters Local 104, Josh Graves, says that the Teamsters had a contract with Ruan Transport Corporation, which contracted with Kroger to hire truck drivers and diesel mechanics at the Kroger warehouse in Tolleson, Arizona. A three year contract between Ruan and Kroger was signed in 2023, which included a clause allowing Kroger to exit the contract with a 90 day notice, reported AZ Central.

In July, the Teamsters union was notified that Kroger had chosen to cancel the contract with Ruan and will soon be working with Swift instead. The last day of employment for truck drivers and mechanics contracted through Ruan will be August 27th. The Teamsters and Ruan have since offered concessions to Kroger in an attempt to keep the contract, but their offers were not accepted. 

The WARN notice filed by Ruan lists a total of 144 that will soon lose their jobs. Arizona Senator, Ruben Gallago, sent a letter on July 22nd, urging Kroger executives to reconsider the decision he says was sparked by failed Teamsters negotiations. 

“I am concerned with your recent decision to terminate your longstanding relationship with Ruan Transportation, an action that puts good-paying jobs at risk and impacts community stability,” Gallego wrote in the letter.

“Kroger had previously attempted to displace union workers but ultimately failed under the scrutiny of workers and the public alike,” Gallego wrote in his letter. “The latest decision appears to be another attempt to undermine Teamsters Local 104 and circumvent the collective-bargaining process.”

“Terminating this contract puts their livelihoods at risk and jeopardizes Kroger’s reputation in the communities it serves,” Gallego wrote. “Indeed, as noted by the union, some employees who will be affected have worked at the distribution center for 26 years or more and are at ages when starting over in their careers will be difficult and daunting.”

A Fry’s spokesperson has made the following statement about the layoffs: “After careful consideration, we’ve decided to transition a portion of our transportation services to Swift, a Phoenix-based carrier. “o help minimize disruption for all parties and maintain the high standards our associates and customers expect, we’ve identified a tiered transition plan.” 

Kroger owns Fry’s Food Stores.