"Kroger's commitment to increase wages and ensure our associates have access to world class, affordable, secure and reliable health care benefits is a core priority for the company," said Joe Kelley, president of Kroger's Houston division.
The announcement comes months after negotiations between Kroger and UFCW Local 455, which represents Kroger associates. Kroger says the union didn't schedule a vote to allow members to vote on this.
"Our plan removes any uncertainty frontline associates experience with their current health and welfare trust fund plan," Kelley said. "We believe this is the right path forward for our associates."
With the new investment, every frontline worker will receive an increase in pay over the next six months. This comes after Kroger already increased wages earlier this year and an $8 million increase in 2019.
Kroger Houston will also spend more than $75 million a year on health care for hourly associates.
Kroger Houston operates more than 100 stores in southeast Texas and Louisiana, and employs more than 18,000 associates.
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