CINCINNATI, April 16, 2018 /PRNewswire/ -- The Kroger
Co. (NYSE: KR) today announced new and enhanced long-term associate
benefits following the Tax Cuts and Jobs Act, including an
industry-leading education assistance program called Feed Your
Future, accelerated investments in store associate wages, a
more generous 401(k) benefit, and enriched associate discount and
support programs.
"The Tax Cuts and Jobs Act is a catalyst that is enabling us to
accelerate investments in Restock Kroger, our plan to serve
America through food inspiration and uplift," said Rodney McMullen, Kroger's chairman and CEO. "We
intend to make significant investments in our associates, to
continue redefining the customer experience, and to return value to
our shareholders – sharing the benefit with all of our stakeholders
in a balanced way.
"I am especially excited to introduce Feed Your Future,
Kroger's new, industry-leading continuous learning and education
benefit. Many of our associates can attest to the life-changing
power of education, and I'm proud to be one of them. Feed Your
Future will support both full- and part- time associates,
wherever they are on their personal education journey, whether they
are pursuing GEDs, MBAs or professional certifications. In this
way, we're offering more than a one-time award – we're offering an
investment in our associates' future.
"Sharing the benefits of tax reform with our associates and
customers will create a more sustainable and stronger business
model to support Restock Kroger and beyond. This approach is also
consistent with living our purpose: to Feed the Human Spirit."
Feed Your Future: Embracing the Life-Changing Power of
Education
Lower federal taxes under the Tax Cuts and Jobs Act have enabled
Kroger to introduce Feed Your Future – an education program
to encourage lifelong learning and strengthen the company's
opportunity culture.
Kroger and its subsidiaries will now offer associates an
employee education benefit of up to $3,500 annually ($21,000 over the course of employment) toward
continuing education and development opportunities including a high
school equivalency exam, professional certifications and advanced
degrees.
Under the new benefit, Kroger expects to increase by five times
its total annual investment in employee education. And in addition
to a more generous individual and lifetime benefit, Feed Your
Future will now cover all full- and part-time associates
following six months of employment.
"We care about our nearly half a million associates' growth and
development, and we believe investing in education will support and
encourage lifelong learning and reinforce our 'come for a job, stay
for a career' opportunity culture," said Mr. McMullen. "We believe
that making education benefits available to more associates and at
more generous levels than ever before is the best way to support
their future."
As part of Feed Your Future, Kroger is also introducing a
new educational leave of absence that allows associates to take
time off work to focus on approved studies, while maintaining a
role with the family of companies and their seniority.
Raising Starting and Overall Wages for Store
Associates
In order to increase starting wages and overall wage rates in
certain markets, Kroger is utilizing the benefits of the Tax Cuts
and Jobs Act to accelerate some of the previously-announced,
incremental $500 million investment
in associate wages, training and development over the next three
years as part of Restock Kroger.
Last month in Cincinnati, for
example, Kroger associates ratified a labor agreement with UFCW
Local 75 that set the stage for starting wage and overall wage
increases in multiple markets across the country. The agreement
raised starting wages to at least $10
per hour, and accelerated wage progressions to $11 an hour after one year of service, for store
associates in the Cincinnati/Dayton area. Those wage increases went into
effect on April 1.
Supporting Associates' Financial Well-Being – Today and in
Retirement
To support associates' financial well-being, Kroger and its
subsidiaries will increase the company match in the 401(k) Plan to
5% of pay, compared to a 4% match today.
The family of companies is also making its associate discount of
10% off Our Brands products a more consistent benefit across
supermarket banners, which will apply to more associates and in
more locations than before. This new commitment will expand on the
existing associate discount for Our Brands products, which
allowed associates to save $53
million in 2017 alone. New associate discounts on general
merchandise, home, apparel, and jewelry are also being offered.
Helping Hands: More Help in Times of Need
Kroger's long-standing Helping Hands program, an internal
support fund that aids associates during hardships, will receive an
additional $5 million in funding and
be easier to use across the family of companies.
"It is a point of great pride for Kroger that we are part of the
fabric of our communities, and our associates always step up to
take care of our customers, neighbors and each other in times of
need," said Mr. McMullen. "Helping Hands is just one example
of how at Kroger we show care every day and uplift each other in
every way – especially when people need it most."
Last fall, as part of the Helping Hands program, Kroger
awarded $700,000 in financial grants
to support 1,100 associates enduring hurricane-related
hardships.
"At Kroger, we are thrilled to have a talented, diverse and
unique workforce," said Tim Massa,
group vice president of human resources & labor relations. "We
care about our associates, and we took the time to thoughtfully
consider how to live our purpose and offer meaningful, personalized
benefits while helping individuals, families and communities thrive
today and in the future."
All of these investments were contemplated in
previously-announced guidance.
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose:
to Feed the Human Spirit™. We are nearly half a million
associates who serve nine million customers daily through a
seamless digital shopping experience and 2,800 retail food stores
under a variety of banner names, serving America through food
inspiration and uplift, and creating #ZeroHungerZeroWaste
communities by 2025. To learn more about us, visit our newsroom and
investor relations site.
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SOURCE The Kroger Co.