In 2022, it is alleged that Kroger and Albertsons banners violated state no-poaching laws during a strike by workers at the King Soopers chain. United Food and Commercial Workers Local 7 has filed the lawsuit on behalf of 18,000 grocery workers in Colorado.
According to the complaint, the Kroger Company and Albertsons Corp. entered into an agreement to reject employees from employment by their respective banners. This alleged agreement was concluded during a 2022 strike.
Colorado Attorney General Phil Weiser has independently filed an antitrust lawsuit to block the Kroger-Albertsons merger and the State is also demanding $1 million in civil penalties.
The lawsuit filed by United Food and Commercial Workers claims recovery of loss wages and penalties for workers who are harmed “by a hidden and illegal deal between King Soopers, City Market and Safeway.” In a joint statement by Kroger and Albertsons, the companies claim that litigation by the Colorado Attorney General mischaracterizes facts since there was no agreement between Kroger and Albertson’s subsidiaries. The companies claim that workers have the right to seek employment at-will including competitors Walmart, Amazon, Costco and other retailers.
A decision on the Colorado filing to block the merger has yet to be handed down by Judge Andrew Luxen of the Denver District Court. Decisions are outstanding in federal cases heard in Washington and Oregon by the Attorney General of Washington State and the Federal Trade Commission in the Oregon case.