State Won’t Drop Suit Over Pact by Grocers

California Atty. Gen. Bill Lockyer won’t drop his antitrust suit against the three supermarket chains involved in the California labor dispute even if union members ratify a proposed contract and end the 20-week strike and lockout, his office said Friday.

“We definitely intend to pursue the case,” Lockyer spokesman Tom Dresslar said.

The suit was filed in U.S. District Court in Los Angeles over a mutual-aid pact that was entered into by Albertsons Inc., Ralphs parent Kroger Co. and Safeway Inc., which owns Vons and Pavilions.

The pact, which called for the stores to share an undisclosed amount of cash to help each other during and after a labor dispute, has “discouraged competitive pricing” in violation of federal antitrust laws, the suit alleges.

The companies have denied any wrongdoing.

Members of the United Food and Commercial Workers union in Central and Southern California will vote on the proposed contract this weekend. Meanwhile, the union and the supermarkets have agreed to drop all litigation, sources said. The UFCW had filed several suits, alleging, among other things, that the stores failed to pay back wages owed to striking and locked-out workers.

Investors on Friday took the proposed contract as a cue to sell the companies’ stocks. They had moved higher in recent weeks, but analysts noted that the chains still faced multiple contract negotiations around the country in the months ahead that could create more disruption.

On Friday, Kroger shares fell 23 cents to $19.22, Albertsons slipped 12 cents to $24.74 and Safeway lost 66 cents to $22.87, all on the New York Stock Exchange.

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Times staff writer James F. Peltz contributed to this report.