Albertson’s Chain Sued for Alleged Racial Bias

Albertson’s Inc., the second-largest U.S. supermarket chain, is being sued by 12 employees for alleged racial discrimination. News of the lawsuit came as the company said it tapped General Electric Co. executive Lawrence Johnston as chief executive and chairman. Johnston, who led GE’s appliances division, replaces Gary Michael, who is retiring. Albertson’s said it has looked into the claims of racial bias. The complaint was filed in state court in Oakland claiming that Albertson’s and a chain it acquired, Lucky Stores Inc., prevent the promotion of black employees to assistant manager or higher positions, lawyers for the plaintiffs said. The lawsuit also contends that advertisements for openings often aren’t posted or are put up only after the job has been filled by a nonblack employee. The employees, some of whom had been with the company for as many as 31 years, claim they have been passed over by nonblacks with less seniority. The plaintiffs are asking for changes in Albertson’s promotion practices, lost wages and benefits, as well as compensatory and punitive damages. The plaintiffs include one former and 11 current Albertson’s employees who seek to represent hundreds, if not thousands, of blacks who may have been denied promotions, said Ed Casey, an attorney for the plaintiffs. “I understand there were no laws violated, and we plan to defend it vigorously,” Johnston said. Shares of Boise, Idaho-based Albertson’s rose $2.15 to close at $30.95 on the New York Stock Exchange.