Class Action Against Kroger and Albertsons for Worker No-Poach Agreements

A long-time grocery store employee has stepped forward as the lead plaintiff in a recent class-action lawsuit, claiming that two major grocery chains engaged in illegal no-poach agreements during a labor strike in 2022. The lawsuit, filed by Denver-based nonprofit Towards Justice, takes aim at The Kroger Co.’s King Soopers and City Market divisions, as well as Albertsons Cos.’ Safeway division.

The lawsuit alleges that these agreements violated the Colorado State Antitrust Act, ultimately leading to suppressed wages and limited economic opportunities for numerous grocery workers across Colorado. Valarie Morgan, a dedicated employee at King Soopers and a member of United Food and Commercial Workers (UFCW) Local 7, is the lead plaintiff in the case. Morgan actively participated in the union’s contract negotiations during the strike last year.

It’s claimed in the lawsuit that these no-poach agreements were established during a strike by UFCW Local 7 against King Soopers earlier this year. These agreements reportedly prohibited Safeway from hiring King Soopers employees and prohibited the solicitation of King Soopers pharmacy customers. The lawsuit argues that these actions were intended to reduce competition between the two chains, which goes against state antitrust laws.

Colorado Attorney General Phil Weiser’s office is already conducting investigations into similar allegations as part of a larger dispute related to a proposed $24.6 billion merger between Kroger and Albertsons. Weiser’s lawsuit, currently awaiting resolution in Denver District Court, aims to halt the merger and enforce penalties for the alleged agreements.

In a previous statement, Weiser highlighted, “King Soopers was worried about losing employees and customers to Safeway during the strike and reached an agreement with Albertsons…. Such no-poach and non-solicitation agreements are illegal under the Colorado State Antitrust Act, as they represent agreements to refrain from competing.”

Furthermore, while the Attorney General’s lawsuit is focused on penalizing the companies, the class-action lawsuit by Towards Justice is striving to recover any economic losses experienced by affected workers. UFCW Local 7 President Kim Cordova noted that the alleged agreements prevented employees from securing better wages and benefits during the strike.

Cordova emphasized, “This case seeks to shine a light on the situation and bring justice to the 18,000 unionized grocery store workers, as well as the many non-union grocery store employees, who were negatively impacted by this secretive and unlawful arrangement between King Soopers, City Market, and Safeway parent companies Kroger and Albertsons. Our members went on strike and secured a significant new contract, but it’s now evident that we could have achieved even greater gains if these corporations hadn’t broken the law behind our backs.”

These allegations come at a time when labor practices and consolidation within the grocery industry are under increased scrutiny. If the Kroger-Albertsons merger moves forward, it could establish one of the largest grocery chains in the U.S., a development that critics argue could lead to further competition suppression and harm workers.