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Ralphs Settles Calif. Labor Case; Will Pay $70M in Fines, Restitution

COMPTON, Calif. - Kroger-owned Ralphs yesterday agreed to cooperate with an ongoing investigation involving its employees and executives during the lockout which took place in 2003 and early 2004.

According to published reports, the retailer will also pay a $20 million fine and $50 million in restitution to the United Food and Commercial Workers Union. Los Angeles U.S. District Court Judge Percy Anderson accepted the agreement yesterday.
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The union had filed suit in January 2004, claiming Ralphs used fake names and social security numbers to hire approximately 50 union workers as temporary replacements during the lockout. Ralphs pleaded guilty in July to charges of conspiracy and identity fraud related to the fraudulent hires.
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