Supermarket Merger May Cost Jobs

MESA, Ariz. (AP) — About 500 Fry's Food Stores truck drivers and warehouse workers will lose their jobs if parent Kroger Co. and Fred Meyer Inc. merge.

Company officials said last week that Fry's will close its Phoenix distribution center if the merger goes through as expected by the end of June. Employees were told on Monday. St. if parent

roger Co. completes its pending merger with rival Fred Meyer Inc., company officials announced Thursday.

The merger is expected to be complete by the end of June.

Jim Nygren, Fry's director of labor relations, said Fry's will try to find jobs for 80 to 100 of the displaced workers at Fred Meyer's Tolleson distribution center.

Nygren said Ruan Transportation Systems, which carries Fred Meyer's goods, may take on some of the drivers.

Cincinnati-based Kroger announced the $13 billion buyout of rival Portland, Ore.-based Fred Meyer in October.

Fred Meyer shareholders approved on Monday, Kroger shareholders were to vote on Tuesday, and negotiations seeking Federal Trade Commission approval were under way.

Fred Meyer owns 17 Fred Meyer Marketplaces, 43 Smith's Food and Drug Stores and two PriceRite Warehouse stores in Arizona. Fry's has 60 Arizona supermarkets.

The Smith's stores are to be transformed into Fry's stores after the merger. Some may have to be sold to deal with competitive concerns.