David Livingston

Grocers Face Antitrust Suit in California

August 18, 2010

FROM RETAILWIRE:
Albertsons, Ralphs and Vons must face an antitrust lawsuit over a pact the three competitors signed in 2003 to share profits if any one of the three were singled out by the United Food and Commercial Workers (UFCW) union for a strike in California, according to Bloomberg News. Do you think the companies engaged in anticompetitive behavior?      [more...]

In all fairness, it seems that if labor can organize and go on strike, why can't supermarket chains organize to protect the interests of their investors? Are the wages of union labor any more important than the profits for investors?

If labor unions can use "economic weapons" then supermarket chains should be able to use similar weapons. The government should not be involved in this matter. It is a private matter that should be left up to labor and management to work out. I was outraged to read "It is a primary object of our nation's laws to protect the rights and interests of working persons..." Really, the primary objective? Seems unfairly one-sided. Consumers are not hurt because they can simply shop other grocers not involved like Wal-Mart, etc., so I doubt prices increased.