In a significant legal development for grocery store workers in Colorado, a class action lawsuit was filed on November 26 against major retailers King Soopers and City Market, both divisions of The Kroger Co., as well as the Safeway brand operated by Albertsons Cos. This case, brought forth by Towards Justice, a public interest law firm based in Denver, centers around allegations of unlawful no-poach agreements that allegedly hindered employment opportunities for grocery workers during a 2022 strike.
Valarie Morgan, a veteran grocery worker and member of UFCW Local 7, serves as the lead plaintiff in this case. Her involvement is particularly notable as she was part of the union’s contract negotiation team during the pivotal negotiations in 2021 and 2022. The lawsuit argues that during a critical strike period, King Soopers entered into clandestine agreements with Albertsons to prevent competition for employees.
Colorado Attorney General Phil Weiser has been conducting an investigation regarding a proposed merger between Kroger and Albertsons, which is estimated at a staggering $24.6 billion. This ongoing investigation has led to separate legal actions contesting both the merger and the alleged no-poach agreements. Weiser’s assertion highlights that King Soopers acted out of concern for potential employee departures to Safeway, hence the formation of these agreements.
The allegations against the grocery giants suggest that King Soopers sought to safeguard its workforce by agreeing with Albertsons that Safeway would neither recruit King Soopers employees nor solicit their pharmacy customers, based on internal communications among company executives. This behavior, as pointed out by Weiser, violates the Colorado State Antitrust Act, which prohibits agreements designed to limit competition.
While the aim of Weiser’s lawsuit is to impose legal penalties for these alleged agreements, the class action suit takes a different approach by seeking restitution for the workers affected. It aims to recover lost wages and other economic benefits—losses that would not have occurred without the alleged unlawful agreements.
Kim Cordova, president of UFCW Local 7, emphasized the impact of these agreements on employees. In her statement, she noted, “This case is an attempt to bring light and justice to the 18,000 unionized grocery store workers, and the thousands of non-union grocery store workers, who were harmed by this hidden and illegal deal.”
The defense from Kroger argues sharply against these allegations. A spokesperson for the company stated that no non-solicitation or so-called no-poach agreements existed between Kroger and Albertsons, asserting that they compete for talent in a broad labor market. This spokesperson also emphasized that, according to the data, only a small percentage (ranging from 1% to 2.5%) of Kroger associates originate from or transition to Albertsons.
Both Kroger and Albertsons are formidable players in the North American grocery sector. Kroger operates with nearly 420,000 employees and serves over 11 million customers daily through a diverse range of banner names. Meanwhile, Albertsons runs over 2,000 retail food and drug stores across 34 states, employing thousands of workers.
As this legal battle unfolds, it sheds light on critical issues regarding employee rights, competition practices, and the ethical responsibilities of large corporations in their treatment of workers. Beyond the legal implications, the outcomes of these lawsuits could profoundly change labor dynamics within the grocery sector, potentially enhancing protections for employees against similar agreements in the future.
The class action lawsuit not only seeks justice for workers who may have lost their livelihood due to unfair corporate practices, but it also represents a broader movement advocating for transparency and fair treatment within labor relations in the retail space.