Kroger and Albertsons Face Class Action Lawsuit for No-Poach Agreements
A long-time employee from a grocery store is taking legal action against two major grocery chains for allegedly engaging in illegal agreements that impacted workers during a recent strike. The lawsuit, filed by Denver-based nonprofit Towards Justice, targets King Soopers and City Market from The Kroger Co., as well as Safeway from Albertsons Cos.
The lawsuit claims that these agreements violated the Colorado State Antitrust Act, ultimately affecting the wages and economic opportunities of many grocery workers in Colorado. Valarie Morgan, a dedicated King Soopers employee and member of UFCW Local 7, is leading the charge as the main plaintiff, after being involved in the union’s contract negotiations during the strike.
The allegations suggest that these no-poach agreements between the grocery chains were crafted during a labor strike in January 2022, hindering Safeway from hiring King Soopers workers and preventing the solicitation of King Soopers pharmacy customers. This, according to the lawsuit, was done to limit competition between the two chains, an action that goes against state antitrust laws.
The Colorado Attorney General’s office has been investigating similar claims as part of a bigger challenge surrounding a proposed merger between Kroger and Albertsons, amounting to $24.6 billion. Attorney General Phil Weiser’s ongoing lawsuit seeks to halt the merger and impose penalties for the alleged agreements that took place during the strike.
In response to these legal actions, UFCW Local 7 President Kim Cordova expressed that the agreements impacted workers’ ability to secure better wages and benefits during the strike, ultimately hindering their progress. The aim of the class-action lawsuit filed by Towards Justice is to recover economic losses on behalf of affected workers and shed light on the situation.
These allegations come at a time when the grocery industry is under increased scrutiny for labor practices and consolidation. Critics are concerned that if the merger between Kroger and Albertsons moves forward, it could lead to limited competition and negatively impact workers within the industry. The outcome of these legal battles could have significant implications for grocery workers across the state.
Source: Progressive Grocer
