Kroger Shifts Distribution from Louisville DC: Report

CINCINNATI -- Facing continued union opposition in its attempt to turn over control of its Mid-South warehouse to a third party, Kroger has shifted some distribution from a warehouse in Louisville, Ky., to a facility near its headquarters here, according to a report in the Louisville Courier-Journal newspaper. Kroger announced plans to transfer ownership and operation of its Mid-South distribution center in Louisville to third parties late last year but has encountered opposition from Teamsters, who argue the new managers could cost its members jobs and wages. The report said Kroger sent its warehouse employees a letter saying it has had tremendous difficulty providing timely service to stores in recent weeks, and that worker absenteeism had risen by around 25% since the transfer announcement. The report said the Cincinnati facility was providing dry-goods distribution for 23 stores previously serviced from Louisville. Officials of Kroger and Teamsters Local 89 were not available for comment.