By AMY KAUFMAN Special to the Daily Press
WEST LA — Solace came to some local supermarket workers early Monday morning, when a federal judge approved a plea agreement ordering the Ralphs grocery store chain to pay $70 million to settle claims that it illegally hired locked-out workers during the highly publicized Southland supermarket strike of two years ago.
Following Monday’s judgment, Ralphs must pay $50 million to nearly 17,000 clerks and unions involved in the scandal, in addition to a fine of $20 million.
Ralphs was accused of secretly rehiring almost 1,000 locked-out workers in an effort to keep business moving during the strike. The rehired employees were forced to work under false names and social security numbers, avoiding the costs of health care and pension contributions for the store, according to the United Food and Commercial Workers (UFCW) union.
Ralphs pleaded guilty in July to five federal counts involving conspiracy, identity fraud, money laundering, concealment of facts from an employee benefit plan and obstruction of justice.
“We’re pleased that the judge accepted the plea agreement that was negotiated with the Justice Department,” said Michael Straeter, president of the local 1442 UFCW, which represents Santa Monica employees.
Employees were the ones to initially notice the illegal activity, hearing things “through the grapevine” or seeing Ralphs workers beginning to show up in different locations than their normal place of employment, said Straeter.
A “Special Master” was appointed by U.S. District Judge Percy Anderson to allocate the payments to Ralphs employees.
The case stems from the largest and longest U.S. supermarket labor dispute in history, which involved 900 Safeway (Vons and Pavilions), Kroger (Ralphs) and Albertsons stores and ran for 20 weeks from October 2003 to March 2004. Grocery employees went on strike to fight to keep affordable health care, as well as ensure their job security with pensions.
Nearly 70,000 grocery workers picketed, drawing immense media attention to their plight and even causing the Port of Los Angeles to shut down temporarily in support of the fight.
Ralphs’ corporate office had no comment on the agreement Monday.
“We were very excited,” said Rev. Alexia Salvatierra, Executive Director of Clergy and Laity United for Economic Justice (CLUE). “As religious leaders, we have many of the workers in our congregations and we saw their suffering and now we’re seeing them get some respect.”
Though the agreement marks the largest settlement for retail unionized workers in the history of the United States, according to Straeter, some members of the community still feel they are owed greater restitution.
“I wish we could have gotten more for the workers — a larger restitution fund than $50 million. I’m sure the workers all feel that way too, and wish they’d been given a $100 million fund,” Straeter said.“I don’t have a crystal ball. But I can tell you that a bird in hand is better than two in the bush.”
Bob Barron, who has been a cashier at the Ralphs store at 12057 Wilshire Blvd. for the past 40 years, admits “not one” employee was initially happy with the contract.
“After four months, they wore us down,” he said. “People just couldn’t hold out any longer.”
Barron served as a picket captain during the strike, which was the largest of four he has been a part of throughout his career. Protesting six days a week was “frustrating,” Barron said.
“You wanted to be working,” he said. “It was discouraging because the company did not have respect for us as workers.”
While the contract did not largely effect Barron due to his seniority, he said that new hires remain dramatically affected by the implemented policies. He has kept his cashier position, he said, because he likes his job.
“I enjoy greeting people,” Barron said. “It keeps me alert and active.”
Ralphs still hasn’t recovered from the strike, claims Barron, who estimates that what was a 27-percent market share for the company has decreased to 20 percent.
“It’s a whole new industry now — 40,000 employees have left since the strike; two-thirds of the work force left,” said Barron.
The judge is expected to formally sentence Ralphs on Nov. 1, but the trial may have more complications in store. Straeter said he is hopeful the Justice Department will pursue indictments against the Ralphs executives who orchestrated the criminal conspiracy.
“Morale in the stores is still low,” Barron said. “I would personally encourage any young employee entering the union to work for Whole Foods, Bristol Farms, Trader Joe’s... they give a better hope for the future.”
Originally published in the Santa Monica Daily Press print edition on October 18, 2006. Read the original PDF.