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January 31, 2004

Cali AG Sues Supermarkets

Attorney General to File Antitrust Suit against the supermarkets conspiring to share resources to lockout their workers:

The state attorney general said yesterday he will file suit over a mutual aid deal reached by the grocery chains involved in the Southland grocery strike, alleging the pact violates antitrust law.

Lockyer argues the aid pact is outside the bounds of any immunity available to management during labor disputes because it includes Food 4 Less, which is not affected by the strike or the collective bargaining process, and because the revenue-sharing agreement is to remain in effect for two weeks after the strike ends.

An order barring the chains from implementing the pact is also being sought.

So including a non-striking company in the pact could fatally undermine the supermarkets. If Lockyer wins, this could be a huge loss for the supermarkets trying to slash health care for their workers.

Posted by Nathan at January 31, 2004 01:41 PM