Colorado Grocery Worker Files Lawsuit Against Industry Giants
A King Soopers employee has filed a class-action lawsuit in Colorado, accusing Kroger and Albertsons of colluding during a 2022 strike to undermine union negotiations, ultimately harming workers and suppressing wages.
The Allegations
The lawsuit, filed by Valarie Morgan, claims that Kroger and Albertsons struck an illegal agreement to avoid hiring each other’s employees or soliciting customers during a work stoppage. This alleged pact, Morgan asserts, weakened the United Food and Commercial Workers (UFCW) Local 7 union’s bargaining power, forcing workers into less favorable contracts.
“The anticompetitive agreement was successful,” the suit states. “It reduced the union’s leverage while bolstering Kroger management’s position during contract negotiations.”
Morgan, who works at a Kroger-owned King Soopers location, is seeking justice not just for herself but for all workers impacted by what she calls “corporate abuse.”
“These companies rigged the system against us, undermining our right to fight for better pay and fair treatment through our unions,” Morgan said in a statement via the legal aid group Towards Justice.
The Response
Albertsons has yet to comment on the case, while Kroger has outright denied the allegations. In an email statement, a Kroger spokesperson said, “There were no non-solicitation or so-called no-poach agreements between Kroger and Albertsons.”
Background of the Strike
The allegations stem from a 2022 King Soopers strike in Colorado, involving 78 stores and thousands of employees. According to the Colorado Attorney General, emails exchanged between senior officials at Kroger and Albertsons suggest the companies agreed not to hire striking workers or solicit customers.
One email cited in the lawsuit quotes Albertsons’ senior vice president of labor relations stating, “We don’t intend to hire any King Soopers employees.” The suit further alleges that Albertsons refrained from encouraging customers to transfer prescriptions during the strike, aiding Kroger in retaining business during the work stoppage.
The Bigger Picture
Kroger and Albertsons, two of the nation’s largest grocery chains, are pursuing a $25 billion merger, sparking concerns over potential anti-competitive practices. Critics argue the merger would harm workers and consumers by driving down wages and increasing prices.
The Federal Trade Commission (FTC), along with several state attorneys general, filed a case earlier this year to block the merger. However, the future of this antitrust challenge remains uncertain under the incoming Trump administration, which is expected to take a less aggressive stance on antitrust issues compared to the Biden administration.
Both companies have defended the merger, claiming it would lead to lower prices for shoppers. Kroger also maintains that allegations of collusion during the 2022 strike are unfounded.
Union Stands Firm
UFCW Local 7, which represents unionized Kroger and Albertsons employees in Colorado, has voiced strong opposition to the merger. Kim Cordova, president of UFCW Local 7, said the alleged collusion undermined the union’s ability to secure stronger concessions during contract negotiations.
“We will never know what concessions we could have got from these employers,” Cordova stated. “We did well with our contracts, but we could have done even better.”
Conclusion
The lawsuit highlights growing concerns over corporate practices that may limit worker rights and fair competition. With the future of the merger and antitrust challenges hanging in the balance, this case could have significant implications for the grocery industry and its workforce nationwide.
Source: HUFFPOST
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