Ralphs Plea an Important Victory

On July 26, Ralphs Grocery Co. pleaded guilty to federal charges that it secretly employed hundreds locked-out workers under false names and Social Security numbers during the 2003-04 Southern California retail food strike and lockout.

After months of hedging and scapegoating low-level managers, Ralphs finally admitted that it committed serious crimes. These crimes extended the duration of the labor dispute, causing severe financial hardship to Union members.

In its plea agreement, Ralphs agreed to pay $20 million in fines and $50 million in restitution. It was the largest settlement of its kind in the history of labor Unions.

Some 17,000 locked-out Ralphs’ members of the seven Southern California UFCW Locals will be compensated according to a formula that takes into account their job classifications, their full-time or parttime status, and the income they received from other sources during the lockout.

Those who crossed picket lines at Ralphs, Albertson’s, Vons and Pavilions stores to work during the strike and lockout will not be eligible to participate in the settlement. That is as it should be. Scabs should not be rewarded for their betrayal.

The seven Southern California UFCW locals presented proof of Ralphs’ criminal behavior to the United States Department of Justice, seeking its help in bringing the company to justice. Federal prosecutors agreed to pursue the case, which was set to go to trial in August, if a plea agreement had not been reached.

This landmark agreement puts employers on notice that they are not above the law when they try to undermine the ability of workers to negotiate fair wages, benefits and working conditions.

Regardless of where we work, all Union members should be glad that justice, however incomplete, was achieved.

Our congratulations go to the seven Southern California locals who persevered in bringing Ralphs to account for its illegal actions.