Five Southern California UFCW Presidents: Expected Ralphs Agreement is a Victory for Workers Everywhere

Business Wire, June 30, 2006

LOS ANGELES -- Company Would Agree To Pay $70 Million in Fines and Restitution to Workers Harmed by Criminal Acts in 2003-2004 Labor Dispute

The presidents of five UFCW Local Unions in Southern California hailed the expected agreement between Ralphs Grocery Co. and federal prosecutors.

According to the UFCW, in the expected agreement, Ralphs admits that it illegally hired back hundreds of locked-out workers under false names and Social Security numbers during the 4 1/2-month Southern California strike and lockout of 2003-2004. These criminal actions improperly extended the duration of the labor dispute, causing severe financial hardship to the UFCW Local Unions and their members. The extended strike and lockout also created serious hardship for shoppers and slowed Southern California's economic recovery.

The company is expected to agree to pay $20 million in fines to the federal government and $50 million more in restitution to about 17,000 UFCW Ralphs employees who did not cross picket lines to work.

If the expected agreement is approved by a federal judge, a total of $70 million will be paid out by Ralphs, making it the largest settlement of its kind in the history of labor unions.

In a joint statement released today, Presidents Mickey Kasparian (UFCW Local 135), George L. Hartwell (UFCW Local 1036), Bill Lathrop (UFCW Local 1167), Connie M. Leyva (UFCW Local 1428) and Michael Straeter (UFCW Local 1442) said the agreement constituted "an historic moment."

The presidents noted that their Unions presented overwhelming evidence 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.

"This expected agreement is a victory for workers everywhere because it sends a message to all companies that they are not above the law," the presidents said.

(Full text of the statement is attached to this press release.)

The United Food and Commercial Workers Union represents 70,000 supermarket workers who were affected by the Southern California strike and lockout of 2003-2004.

STATEMENT ON THE RALPHS AGREEMENT
              BY FIVE SOUTHERN CALIFORNIA UFCW PRESIDENTS

The following statement was released on June 30, 2006, by five
presidents of UFCW Local Unions in Southern California:

This is an unprecedented moment. In an expected agreement with federal
prosecutors, Ralphs Grocery Co. has agreed to pay $20 million in fines
and $50 million in restitution.

This will be the largest settlement of its kind in the history of
labor unions.

During the strike and lockout of 2003-2004, Ralphs illegally hired
back locked-out workers and required them to work under false names
and Social Security numbers. Ralphs not only violated the law, its
actions prolonged the labor dispute significantly.

The UFCW Local Unions in Southern California presented overwhelming
evidence 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.

In the expected agreement, Ralphs admits its guilt and pledges to pay
restitution. It affects about 17,000 Union employees of Ralphs who
were hired before March 2004 and did not cross any picket lines to
work.

This expected agreement is a victory for workers everywhere because it
sends a message to all companies that they are not above the law.

Mickey Kasparian, president, UFCW Local 135 (San Diego County/Imperial
County)

George L. Hartwell, president, UFCW Local 1036 (Ventura County/Central
Coast/Kern County)

Bill Lathrop, president, UFCW Local 1167 (Inland Empire)

Connie M. Leyva, president, UFCW Local 1428 (San Gabriel Valley)

Michael Straeter, president, UFCW Local 1442 (Santa Monica/Westside/
South Bay)