Ralphs Grocery Co. has agreed to pay $70 million to settle charges it illegally hired workers during the 2003-2004 grocery strike. The Kroger Co. supermarket unit in July pled guilty to five counts related to charges it illegally hired hundreds of workers under false names during the five-month labor dispute that locked out 19,000 Ralphs workers in Southern California. Prosecutors have said they believe some 1,000 workers were involved in the illegal hiring, although Ralphs has put the number at fewer than 300. The deal requires Ralphs to pay $20 million in criminal fines and $50 million into a restitution fund for employees who were locked out during the dispute and for union chapters that paid out lockout benefits. The chain was also placed on three years probation and it agreed to cooperate with the government as it pursues criminal charges against individuals in the company.
