As a mega-merger with Albertsons looms, Kroger makes another big payroll error
For almost a year, Kroger employees across the country have been plagued by payroll problems.
It started around last Labor Day when, as Salon Food reported, the supermarket chain migrated to a new payroll platform called MyTime and a glitch in that program caused thousands of late, partial and missing paychecks
According to a November email sent to an area manager in the Midwest that was reviewed by Salon Food, management at Kroger were “”aware of the issue with relief [pay] being entered, but not paid out.” However, they didn’t indicate to employees when the issue would be resolved. Employees and their union representatives pushed the company for answers for months before eventually four class-action lawsuits against Kroger were filed in five states.
And now — as the chain is already facing increased scrutiny for its proposed mega-merger with its competitor, Albertsons — Kroger has made yet another payroll error and workers are speaking out about the experience.
As WCPO Cincinnati’s Dan Monk reported, 50 bakery managers in the Greater Cincinnati Kroger stores received incorrect bonus amounts in March when they were included for the first time in a new incentive program run by the company.
Kroger issued a statement about the error, which read, in part:
Kroger’s values include honesty and integrity, which means when we make a mistake, we acknowledge it and act quickly to resolve the issue. Several months ago, a small percentage of local associates were paid more than their earned incentive. This was due to a clerical mistake. We immediately identified the error, notified and provided the affected associates with options to return the mistaken overpayments in a way that respects both their personal financial situation and integrity.
But in the case of Tabitha Gilven, one of the impacted bakery managers, she was promised a $3,134 bonus. Instead, she received $6,653.93 from the company in three bank deposits on March 24. Initially, the company requested that the overpaid employees return the extra funds via an overnighted cashier’s check, however that was ultimately vetoed after some workers pushed back on having to absorb the cost of both a certified check and the overnighting costs.
Then, as Monk reported, Kroger’s payroll department sent Gilven a letter on April 14, claiming she was “overpaid a gross amount $6,794.48” and warning of “further collection efforts” if she failed to choose one of four options for repayment. The letter did not address why the company was seeking to collect over $140 more than they had deposited into her account, nor when she would get her $3,134 bonus after sending the money.
As of now, Gilven hasn’t sent the money back while she waits for her union representative to land on a repayment structure that won’t impact next year’s taxes for the overpaid employees.
“It feels like a slap in the face,” Gilven said. “I worked hard to get that bonus. I just want what’s supposed to be mine.”
Kroger’s pattern of payroll errors has caused some critics to question whether its proposed $24.6 billion merger with Albertsons, which is currently under review by the Federal Trade Commissions, should be approved. Kevin Garvey, Local 75 president of the United Food and Commercial Workers union, told WCPO Cincinnati that there are various reasons people are concerned about the merger.
“Potential loss of (union) membership, liability to the trust funds, pension and health care, but I’m sure the payroll’s a big part of it as well,” he said. “You definitely don’t want to mess with peoples’ pay, right?”
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In May, the United Food and Commercial Workers International Union (UFCW) and its 1.3 million members voted unanimously to reject the merger. UFCW International President Marc Perrone said at the time: “Given the lack of transparency, and the impact a merger between two of the largest supermarket companies could have on essential workers – and the communities and customers they serve – the UFCW stands united in its opposition to the proposed Kroger and Albertsons merger.”
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