Hundreds of truck drivers and warehouse workers walked off the job at Associated Grocers Northeast’s distribution facility in Pembroke, New Hampshire, after their five-year union contract expired last month, and the fallout is already showing up on grocery shelves well beyond the Granite State. Teamsters Local 633 members began striking after the contract lapsed on Oct. 17, with the union saying a fight over pension benefits sits at the center of the standoff.
According to NHPR, the union represents about 255 people at the facility, including drivers, warehouse workers and maintenance staff, though other outlets have given slightly different counts. The Union Leader reported at least 255 Teamsters on strike, while WMUR put the number at more than 255 union members, including truck drivers and warehouse workers. The union says the dispute centers on AGNE’s proposal to end its company pension and replace it with a 401(k) savings plan, a move NHPR reports workers overwhelmingly rejected at the bargaining table.
What Pushed Workers to the Picket Line
Local 633 members authorized the strike in a Sept. 26 vote, with 98% of union voters backing the move, the Union Leader’s report notes. Beyond the pension fight, the International Brotherhood of Teamsters says warehouse workers and drivers are also demanding higher wages, better benefits and safer working conditions.
The pension dispute did not emerge overnight. Per the Union Leader’s reporting, AGNE first explored withdrawing from the pension fund back in September 2025, and the company later sued the fund in June after seeking more information about the potential liabilities it would face if it pulled out. AGNE President and CEO Michael Violette has said company leaders remain at the negotiating table and hope for a resolution to the contract dispute, the same outlet reports.
Ripple Effects Reach Vermont Shelves
The union says the strike has already disrupted grocery deliveries across New England and New York, and reports from Vermont suggest those disruptions are landing on real store shelves. VTDigger reports that some Vermont grocery and convenience stores are seeing reduced stock and delayed deliveries, with the distributor described as serving over 600 grocery and convenience stores between Pennsylvania and Maine.
In Derby, Vermont, one store told the Newport Vermont Daily Express it had already missed two deliveries, leaving shortages of meat, produce and dairy products. WCAX reports the strike could lead to shortages of canned goods, frozen food and other nonperishables at independent grocery stores if deliveries remain disrupted. NHPR, meanwhile, notes that the broader impact on as many as 1,000 independent stores that are members of the co-op throughout New England and New York remains unclear.
Company Says It's Preparing for the Holidays
Violette has said AGNE has a contingency plan in place to avoid service disruption during the holiday season, according to the Union Leader’s report, even as the picket lines in Pembroke continue. CBS News Boston also covered the walkout, reporting that CBS News found independent grocery stores across New England running low on stock as a result of the strike, with WBZ-TV’s Paul Burton reporting on the story for the station.
For now, the dispute remains unresolved, with both sides describing ongoing talks but no announced agreement. Shoppers at independent grocers from New Hampshire into Vermont may continue to notice gaps on the shelves as the standoff over pensions, wages and benefits plays out at the negotiating table.
