Ralphs Files $20-Million Boycott Suit Against Unions

Trying to halt a boycott of its supermarkets by union members, Ralphs Grocery Co. filed a lawsuit Friday in Orange County seeking $20 million in punitive damages and an order to halt random picketing.

However, eight union locals representing about 8,000 of the company’s 12,000 workers won a transfer of the suit to U.S. District Court in Los Angeles.

The unions announced the boycott earlier this week in the wake of a continuing dispute over demotions and layoffs at the grocery chain.

“We don’t know how many customers they’ve turned away--there’s no way to ascertain that. We only know it’s a substantial number,” said Thomas S. Kerrigan, attorney for Ralphs.

Kerrigan accused the United Food and Commercial Workers Union of a stalling tactic in maneuvering the case into federal court.

The unions have the right under court procedure to “remove” or transfer a case from state to federal courts when issues involve federal law.

Union officials say that Ralphs, one of the largest retail food chains in Southern California, has laid off or demoted 1,800 workers since early 1984 in violation of its contract. The union claims the company has been replacing veteran employees with younger, less experienced workers who earn lower salaries.

Ralphs says it laid off only 173 workers, though many others have been shifted to lower-paying positions. The company claims its actions are legal under the contract and are needed to cut labor costs and remain competitive.