Showing posts with label UFCW union. Show all posts
Showing posts with label UFCW union. Show all posts

Thursday, January 14, 2010

UFCW Union Launches Informal Boycott of Fresno CA Fresh & Easy Stores Today; One Day After the Stores Open

UFCW members picket at the Fresh & Easy store in Manhattan Beach, California on grand opening day, July 2, 2008. Read story here.

The United Foods & Commercial Workers union Local 8-Golden State, based in Roseville, California near Sacramento, launched informational picket lines at three of Tesco's Fresh & Easy Neighborhood Market stores in the cities of Fresno and Clovis in California's Central Valley today, just one day after the fresh foods and grocery chain opened the three stores in the two cities Wednesday morning.

The three Fresh & Easy stores are located at 2820 Tulare St. and 8059 N. Cedar Avenue in Fresno, and at 790 Shaw Avenue in Clovis. Clovis is a suburb of Fresno and is located right next door to the city.

Tesco also opened a Fresh & Easy market in nearby Lemoore in early December 2009. There are currently four Fresh & Easy stores in the Fresno region. An additional store is set to open next month in Fresno at 2047 West Shaw Avenue. More stores will be opening, likely in late February and early March.

Jacques Loveall, President of UFCW Local 8-Golden State, says the grocery clerks' union is asking shoppers in Fresno and Clovis not to shop at Fresh & Easy and to shop instead at UFCW- unionized grocery stores such as Save Mart, Food Maxx (Both owned by Modesto, California-based Save Mart Supermarkets) Kroger-owned Foods Co, Safeway Stores-owned Vons, local independent Ronnie’s Midway market and the local outlets of the Rite Aid drug chain.

"Tesco, which is Fresh & Easy’s parent company in the United Kingdom, is siphoning money out of our community," Loveall says, regarding the union's informal picketing of the three Fresno-area Fresh & Easy stores. "We are responding to that provocation."

The union local president added: "California has enough challenges without a foreign company (Tesco) coming in with substandard jobs that threaten good local companies that bring value and good jobs to our community. It’s bad enough good American jobs are exported overseas at an alarming rate. Now this global giant from the UK is coming to our country thinking it can take advantage of American workers on our own turf. We will not allow that to happen."

Loveall says Tesco's Fresh & Easy poses a threat to unionized food and grocery market share and to the living standards of UFCW union members' wages and benefits.

"Our members are prepared to do whatever it takes to ensure that workers at Fresh & Easy have the same access to the good pay, health care, pension and job security that are enjoyed by Union members," the UFCW union local president says.

The UFCW union has been campaigning against Tesco's non-union status with Fresh & Easy for over two years, as we've reported on and written about extensively for that period of time in Fresh & Easy Buzz. [Our first report was in 2007 here: UFCW Union to Organize Fresh & Easy Clerks in 2008.]

In late September 2009 UFCW Local 8-Golden State launched an informal picketing campaign at three then recently-opened Fresh & Easy stores in the Bakersfield, California region. Two of those stores are in Bakersfield; one at 11100 Olive Drive and the other at 5190 Stockdale Hwy. The third Fresh & Easy store is at 611 Cecil Avenue in nearby Delano. Bakersfield is south of Fresno in the southern Central Valley.

In 2008 the UFCW conducted a very aggressive multi-strategy tactical campaign against Tesco's Fresh & Easy. That campaign included: picketing at Fresh & Easy stores in Southern California, Arizona and Nevada; a multi-media public relations campaign in both the U.S. and UK; the authoring of a shareholder resolution at Tesco's annual meeting in the United Kingdom against Fresh & Easy's non-union status, which failed to pass; along with various other tactics to attempt to get Tesco to open Fresh & Easy to the union.

The UFCW union even was able to get then candidate and now President Barack Obama to sent a letter to Tesco requesting it open Fresh & Easy to union representation, as we reported in this June 2008 story.

Tesco's official position has been that it's the choice of the Fresh & Easy store-level employees, which are the workers the UFCW is attempting to unionize, to vote in favor of UFCW representation if they choose to but that the company has no position pro or con unionization for Fresh & Easy retail employees.

In September 2008, as we reported in this story [September 17, 2008: Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market] employees of the Fresh & Easy market in Huntington Beach in Southern California asked Fresh & Easy's senior management for recognition as a UFCW union shop.

But as we reported in this story in early October [October 2, 2008: Tesco Fresh & Easy Denies Huntington Beach Store Employees Request to Be Recognized As A Union Store; Next Step Likley to Be Open Ballot Election] Fresh & Easy's corporate management denied the store workers' request, which isn't an unusual conclusion in such matters.

No open ballot election has taken place for the Huntington Beach Fresh & Easy store employees to date. Our union sources told us last year that the main reason from their end for this is because they were waiting for the U.S. Congress to take up the Employee Free Choice Act legislation, which many thought Congress would do in 2009. However, health care reform prevented Congress from putting the legislation, also called "Card Check," on the agenda. It is expected to be debated this year.

A Fresh & Easy Buzz correspondent talked to a couple employees at the Huntington Beach Fresh & Easy in fall 2009 regarding the union issue. The consensus of the employees was that joining the union had sort of fizzled out as a priority for the workers because of the recession and high unemployment rate, particularly in Southern California. However, we also know the idea of being able to start the unionization process with Fresh & Easy with that one store is far from dead among UFCW organizers.

The UFCW's aggressive unionization campaign against Tesco and its Fresh & Easy chain went rather silent in late 2008, and remained that way for all of 2009.

The UFCW union's public relations media campaign came basically to a halt. The UFCW even stopped updating the Web Site and Blog - fresh & easy facts - it's used against Tesco's Fresh & Easy in the campaign. For example, it hasn't updated the articles part of the site since June 2008.

We don't see signs that the UFCW's campaign to unionize Tesco's Fresh & Easy is about to return to its aggressive 2008 stance anytime soon.

However it's important to note that Local 8-Golden State is one of the strongest and most successful of all the UFCW locals nationwide in terms of organizing and contract negotiations with existing unionized supermarket chains.

For example, in Northern California and the Central Valley, the local's territory, all of the leading supermarket chains - Safeway (Safeway and Vons), Kroger-owned Foods Co and what's left of Cala Foods, Raley's (Raley's, Nob Hill, Bel Air and Food Source) Save Mart (Save Mart, Lucky and FoodMaxx), Albertsons - and most of the small chains, multi-store independents and even many larger single-store independents are unionized.

What the local has been unable to do, even though its region is arguably the strongest unionized grocery market in the nation, is to be able to force non-supermarket food retailing operators like Walmart, Whole Foods Market, Trader Joe's, Winco Foods and a couple others to unionize, although it has tried and continues to try to do so.

There's significant pressure on the UFCW to unionize these chains, particularly in California, because the union chains like Safeway, Kroger and the others, are coming under continued pressure from these non-union operators in terms of increased competition and encroachment on market share. This is a fact the CEO's of Safeway, Kroger, Stater Bros., Save Mart, Albertson's, Raley's and the other chains with operations in California have made clear via their representatives to the union in contract negotiations.

Fresno could be the new battle ground for the UFCW's continued efforts to unionize the store-level employees of Tesco's Fresh & Easy. But thus far the union's efforts in Southern California, Arizona and Nevada haven't born fruit. We will be falling the developments closely. Stay tuned.


[Readers: Click here and here for an extensive selection of past Fresh & Easy Buzz coverage of the UFCW and Tesco Fresh & Easy unionization issue and related topics. Notice the various links to other stories at the posts at the two links above as well.]

Sunday, May 10, 2009

Safeway, Kroger Co. and UFCW Union Agree to Extension in Colorado Store Worker Contract Dispute; We Suggest A 'No Loser' Policy in Negotiations

Food & Grocery Retailing and Organized Labor: News, Analysis, Commentary

Safeway Stores, Inc.'s Colorado division and the United Food & Commercial Workers (UFCW) union avoided a potential employee strike at Safeway supermarkets in the western state when the grocery chain decided to extend its just-expired union contract until May 30, giving the retailer and UFCW local 7, which represents the store workers, more time to negotiate a new contract.

Safeway operates over 100 supermarkets in the Colorado Rocky Mountain region.

Safeway Stores, Inc. issued a statement today announcing the contract extension.

Colorado Safeway store workers voted yesterday in favor of a strike but have agreed to continue to work under the old contract, which expired at 11:59 p.m. Saturday, May 9, until a new contract can be agreed upon or the May 30 contract extension deadline is reached, according to Kristine Staaf, a spokesperson for Safeway Stores.

Safeway's Colorado Rocky Mountain division isn't the first supermarket chain in the state to extend its contract with the UFCW over the weekend.

Yesterday another supermarket chain with stores in Colorado, Kroger Co.-owned King Soopers, decided to extend the union contract for its store-level employees to May 30 after being offered the opportunity to do so earlier in the week by UFCW local 7.

Safeway-Colorado and Kroger's King Soopers-Colorado had previously agreed to a mutual pact in which if employees of one chain or the other went out on strike, the other chain would then lock out its store-level workers in return. This has become a common strategy among unionized supermarket chains in the U.S. when the UFCW threatens a strike if a new contract isn't agreed upon within a certain timeline.

Such an agreement won't be needed between now and May 30 however, since employees for both chains have indicated they plan on working through contract negotiations, at least until May 30.

The contract negotiations and threat of an employee strike come at an obvious difficult time --the recession, massive unemployment, and the financial crisis -- for both the two grocery chains and their employees.

The union and its employees want a slight wage increase under the proposed new contract.

The two grocery chains want wages kept where they currently are under the new contract.

The union wants certain changes to the employee pension system, chief among them is changing the age in which store-level workers are eligible to start receiving their pensions, from the current age of 55, to age 50.

Safeway and Kroger's King Soopers want to keep the minimum retirement age right where it was in the just-expired contract -- at age 55.

Safeway Stores' and Kroger/King Soopers' Colorado divisions are the two leading supermarket chains in the the state. Albertsons, also unionized, is number three.

Fresh & Easy Buzz Analysis and Commentary

Unionized supermarket chains like these three pay store-level employees with one-year of full-time experience from about 30% to as much as 50% more per hour than what non-union grocery and mass merchandiser chains like Wal-Mart, Target, Costco, Trader Joe's, Tesco's Fresh & Easy, Colorado-based Sunflower Farmers Market, Whole Foods Market and others do.

The hourly wage for a full-time journey-level retail clerk at a unionized supermarket chain in the Western U.S. is about $20 an hour. They also receive a higher hourly wage when they work on Sunday and on holidays.

The unionized supermarket chains also offer workers a defined benefit pension plan.

The non-union chains generally offer 401-k-type of plans in which the employer matches a certain percentage of a store worker's contribution.

A UFCW-affiliated union chain employee with 30 years' of full-time service can retire after such service and collect as much as $40,000 annually in pension benefits every year he or she is alive post retirement.

Additionally, the UFCW-union supermarket chain health plan is among the best of any business sector, at any level, in the United States. Compared to most health plans the unionized supermarket clerks have more choice, lower employee contributions and minimal co-payments.

There's a growing frustration among the CEO's and others at unionized supermarket chains like Safeway, Kroger, Supervalu, Inc. and others because the fastest-growing retailers of food and groceries, the ones nipping hard at their heels, are non-union.

In Colorado this challenge from non-union retailers especially includes Wal-Mart with its Supercenters, Costco with its big box stores that sell fresh foods and groceries, and Target with its discount format stores and Super Target stores, which are similar to a Wal-Mart Supercenter.

To a lessor but important extent it also includes increased competition from the non-union and fast-growing natural foods-grocery hybrid chains Sunflower Farmers Market and Natural Grocers, both which are based in Colorado.

These non-union chains, which generally pay lower hourly wages and offer less in employee benefits than do unionized Safeway and Kroger, have been and continue to open new stores in Colorado, putting pressure on the unionized chains.

The unionized chains argue that because these non-union retailers pay employees less and offer fewer benefits, it puts them at a competitive disadvantage when it comes to retail pricing. Despite that fact, Safeway and Kroger are both rather competitive with Wal-Mart and Costco on price -- and are actually lower overall than Target.

It's important to note that neither Safeway or Kroger has been or is talking about breaking the union. Nor are they complaining. But they have a valid argument, one the UFCW should take seriously we believe, about the competitive advantage afforded the non-union competitors.

Safeway Stores' and Kroger Co.'s stores in Arizona, Nevada and California aren't affected by the contract negotiations or threatened strike. The divisions in these respective Western States --the three states where Tesco's Fresh & Easy operates its 120 non-union grocery and fresh foods markets -- operate under separate contracts.

Safeway Stores, Inc. operates 500-plus supermarkets in California, Nevada and Arizona under the Safeway and Vons banners.

Kroger Co. operates about the same number of stores in the three states. It's banners in the three states are: Ralphs (Southern and Central California), Food 4 Less (Southern California, Nevada); FoodsCo (Northern California) Smith's Food & Drug (Nevada) and Fry's (Arizona).

Additionally, both Safeway and Kroger operate hundreds of additional supermarkets in other Western U.S. states, including in addition to Colorado, in Oregon, Washington State and elsewhere in the west.

The fact that non-union retailers have been gaining on unionized supermarket chains is best demonstrated by looking at the changes in the ranking of the top-five retailers of food and groceries over just the last four -to- five years.

Just four years ago Kroger Co. (unionized) was the number one retailer of food and groceries in the U.S., followed by non-union Wal-Mart at number two, Supervalu, Inc. (unionized) at number three and Safeway Stores, Inc. a (unionized) number four.

Today, non-union Wal-Mart is the number one food and grocery retailer nationally in the U.S. Kroger (unionized) is number two. Non-union Costco is number three Unionized Supervalu, Inc. is fourth and Safeway Stores, Inc. (unionized) is number five.

Non-union Wal-Mart and Costco have been the two fastest-growing chains among these top five in terms of annual sales volume.

Additionally, Aldi USA and Whole Foods Market, Inc., both multi-billion dollar a year grossing non-union chains, and both among the top-25 largest chains in the U.S., have grown faster on a percentage basis than any unionized supermarket chain in the U.S. over the last five years.

American workers are seeing wage stagnation greater than ever in recent history during this recession. In fact, such wage stagnation has been going on for at least the last five years.

And of course, most American workers just want to hold on to their jobs right now, since finding a new one at present reminds one of that old song: " (Dream) The Impossible Dream."

Such are the realities facing Safeway Stores, Inc., Kroger Co., the UFCW union and the employees of Safeway's Colorado stores and Kroger's King Soopers supermarkets this weekend.

All sides in the negotiations should be extra considerate of one another in these tough times, we suggest. Give and take must be the order of the day. It's not a time for winners and losers. The stakes are too high for all of the stakeholders involved.

And, with all due respect to the UFCW... Is this really a good time to be arguing for the retirement age for unionized supermarket clerks to be reduced from age 55 to 50? We get it -- the more folks that retire at age 50 the more new jobs open, at least theoretically. That could backfire though, actually, in the form of employers freezing openings.

It's just that the move is rather tin ear we think for the current times. Right now the vast majority of Americans in their late fifties and early sixties, including those at retirement age now, will have to postpone retirement because they can't afford it.

Therefore, along with a couple other reasons, we aren't sure arguing for unionized grocery clerks to get the same retirement benefits at age 50 that they now get when they retire at 55 if they choose to is a good move in terms of gaining public support. Not to mention getting continued support from unionized supermarket chains.

Related Stories from Fresh & Easy Buzz:

>April 13, 2009: Analysis: Major Retailers Costco, Whole Foods Market and Starbucks Propose Employee Free Choice Act 'Third Way' Compromise; What About Fresh & Easy?

>February 13, 2009: Labor & Food Retailing: Kroger Co. Chains Sign New Contract With the UFCW Union in Vegas; What Happened to the UFCW Tesco Fresh & Easy Campaign?

>November 10, 2008: Food Retailing & Organized Labor: Tesco's Fresh & Easy Gets Some Company as the UFCW Union Launches Campaign to Unionize Wakefern's PriceRight Banner

>November 4, 2008: U.S. Organized Labor, Including the UFCW Union, is Feeling Good Tonight About A President Obama and Stronger Democratic Majority in Congress

>October 28, 2008: The UFCW Union, Tesco's Fresh & Easy, U.S. Labor Relations, and Next Week's Presidential and Congressional Election

>October 2, 2008: Tesco Fresh & Easy Denies Huntington Beach Store Employees Request to Be Recognized As A Union Store; Next Step Likley to Be Open Ballot Election

>September 26, 2008: News & Analysis: Employees At Two More Fresh & Easy Grocery Stores Could Soon Request UFCW Union Recognition From Tesco's Fresh & Easy

>September 17, 2008: Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market

>August 27, 2008: UFCW Union Reports Tesco Fresh & Easy Neighborhood Market's Prepared Foods Supplier to Labor Board For What it Says is Unfair Firing of Six Employees

>August 5, 2008: UNI Global Union Launches Tesco-Specific Alliance; Calls For Tesco Executives to Meet With UFCW Union Officials Over Fresh & Easy Neighborhood Market

>August 4, 2008: Pico Rivera, California City Council Members Boycott Fresh & Easy Store Grand Opening; Mayor Attends But Delivers Pro-UFCW Union Message to Execs

>July 30, 2008: UFCW Union Flyers On His Door Knob Cause Heat in 'The Pragmatic Chef's' Mental Kitchen; Others Wondering About the Negative Campaign As Well

>July 3, 2008: Mid-Week Fresh & Easy Roundup: Fresh & Easy Gets Caught in A Land Use Dispute; Those Near-Famous Mixed Grill Packs; More On Manhattan Beach

>July 4, 2008: Breaking News: UFCW Union Strikes Again With Anti-Tesco Fresh & Easy Brochure Drop in Neighborhood Surrounding New Manhattan Beach Store

>July 2, 2008: UFCW Union Pickets Out in Force This Morning At Manhattan Beach Fresh & Easy Store Grand Opening

>June 30, 2008: Breaking News: UFCW Union Launches Preemptive Anti-Tesco Fresh & Easy Brochure Distribution Drop on the Eve of Manhattan Beach Store Grand Opening

>June 26, 2008: Tesco 2008 AGM: Barack Obama Sends Second Letter to Tesco CEO Requesting the Company Meet With U.S. UFCW Union Leaders About Fresh & Easy

>June 22, 2008: Vocal Cast of Critics and Advocacy Groups to Attend Tesco's Annual General Meeting On Friday, June 27

>June 4, 2008: News and Analysis: UFCW Union Takes its Tesco Union Organizing Campaign Across the Pond to the United Kingdom Beginning Today

>March 26, 2008: United Food and Commercial Workers Union Begins its Spring 2008 Organizing and Communications Campaign Directed at Tesco's Fresh & Easy

>February 11, 2008: Supermarket Union President Asks Britain's Prince Andrew to Arrange A 'Sit-Down' With Tesco Fresh & Easy Neighborhood Market Senior Executives

[Follow Fresh & Easy Buzz around on Twitter.com at www.twitter.com/freshneasybuzz]

Tuesday, April 28, 2009

News & Analysis: Senator Arlen Spector's Switch to Democratic Party Offers Increased Probability Employee Free Choice Act Could Pass in U.S. Senate

U.S. Senator Arlene Spector, pictured above briefing reporters at the U.S. Capital building in February of this year, announced this morning he will become a Democrat, ending his many years as a Republican Senator from Pennsylvania. [Photo Credit: Chip Somodevilla-Getty Images.]

The Employee Free Choice Act, Tesco's Fresh & Easy and Food & Grocery Retailing USA

Republican Senator Arlene Spector from Pennsylvania, a crucial swing vote in the U.S. Senate regarding the Employee Free Choice Act legislation that most likely will be approved by the U.S. House of Representatives this year and then voted on by the U.S. Senate, announced this morning he is changing parties and becoming a Democrat.

"Since my election in 1980, as part of the Reagan Big Tent, the Republican Party has moved far to the right," Specter, 79, said in a statement this morning. "Last year, more than 200,000 Republicans in Pennsylvania changed their registration to become Democrats. I now find my political philosophy more in line with Democrats than Republicans."

Spector is in his fifth term in the U.S. Senate. Each Senate term is for a period of six years.

He faces a tough election for a sixth term next year, facing challengers from both the Republican and Democratic sides. That was before he announced today his switch to the Democratic Party.

Party-switching seldom a spur of moment decision

However, we suspect his changing parties wasn't done without consultation with Senate Majority Harry Reid, D-Nevada, and other top Democrats like Senator Charles Schumer, D-NY, who heads up the Senate Democratic Campaign Committee, the Senate Democrat's political arm.

Therefore, look for heavy Democratic support from these and other Democrat big guns for Spector's 2010 run in Pennsylvania as a Democrat.

Pennsylvania's other Senator, Robert Casey, is a Democrat.

Also look for the Republicans to put a big pot of money and lots of grassroots effort behind a Republican candidate in a challenge to Spector in 2010. It will be tough though for a Republican, particularly a conservative, to get elected to the U.S. Senate in Pennsylvania, as the state has trended Democrat and likes moderate Republicans, which is why its voters have given moderate Republican Arlene Spector five terms.

Senate leader Harry Reid welcomed Spector to the Democratic Party and Democrat Senate Caucus this morning with wide open arms, saying: "I welcome Senator Specter and his moderate voice to our diverse caucus. We have not always agreed on every issue, but Senator Specter has shown a willingness to work in a bipartisan manner, put people over party, and do what is right for Pennsylvanians and all Americans."

And Senator Chuck Schumer offered his two cents as well, saying: "Senator Specter is an effective, intelligent and moderate senator. We welcome him into the Democratic Party and our caucus in the Senate."

Senator Spector's switch to the Democratic Party and therefore to the Senate Democratic Caucus gives the Democrats 59 members, just one Senator shy of the magic 60-vote majority needed to prevent a fillibuster by Republicans on bills the Democrats want to pass, such as the Employee Free Choice Act, which is supported by Leader Reid, the majority of Senate Democrats, and President Barack Obama.

Employee Free Choice Act

The organized labor-advocated Employee Free Choice Act, often referred to as "Card Check," would among other things allow workers to merely check "yes" on a card if they want to be represented by a labor union at their non-union place of work, rather than going through the long "secret ballot" process that currently is a part of U.S. Labor law.

The proposed legislation also makes it much more difficult for employers to lobby employees against joining a union, which is something the employers are given ample opportunity to do under the current "secret ballot" method used by unions and workers to vote on union representation.

There's strong opposition to the Employee Free Choice Act among corporate America and small business. And all of the current Senate Republicans, as well as the vast majority in the U.S. House of Representatives, oppose the legislation.

As we reported in this story on April 13, 2009 [Analysis: Major Retailers Costco, Whole Foods Market and Starbucks Propose Employee Free Choice Act 'Third Way' Compromise; What About Fresh & Easy?] Spector announced he was switching his previous support in favor of the Employee Free Choice Act to a new position of being against the legislation.

Senator Spector was the only Senate Republican to vote in favor of the legislation in 2007. The Employee Free Choice was defeated in 2007, despite passing in the U.S. House of Representatives by a wide margin and winning in the Senate by a majority. The reason it was defeated in the Senate is because Senate Republicans fillibustered the bill and the Democrats didn't have to 60-votes needed to break the fillibuster.

President Bush opposed the legislation and said he would veto the bill if it passed the Senate. The 60 vote majority is needed according to Senate rules in order to override a Presidential veto.

President Obama voted for the Employee Free Choice as a Senate Democrat in 2007. He campaigned for President in 2008 in support of the legislation, and has said he will sign the bill if it is passed out of Congress.

We suspect Senator Spector's recently taken new position on the Employee Free Choice Act legislation just might have come up in talks with Senate Democratic leaders regarding his switch from Republican to Democrat -- and the deal-making that likely was a part of the switch -- although we can't confirm that.

Spector said at a press conference this morning that he still opposses the Employee Free Choice Act bill as written, saying that "it is a bad bill as currently written." The key phrase is: "It is a bad bill as currently written."

At a news conference later, Senate Leader Harry Reid was asked about Spector's continued opposition to the Employee Free Choice Act (EFCA) despite the Senator's switch to the Democratic Party. Reid made a point of saying that Senator Spector opposes the current "iteration" of the EFCA bill, then saying: "The bill will likely go through one or more iterations (read changes) when it gets to the Senate."

Our analysis is that Reid was signaling two things: That the current EFCA bill will be amended when it gets to the Senate from the House, and that now Democrat Senator Arlene Spector just might be willing to vote in the afirmative for a new "iteration" of the EFCA bill.

Spector wants to be Chairman of the Senate Appropriations Committee. One of the things Reid said in the news conference that he agreed on with Spector was that is the former Republican switched parties he would be considered to have senority in the Senate from day one just as if he had been a Democrat all along. That's an unusual agreement to make. (Spector was actually a Democrat until he switched to the Republican party in 1965.)

Such seniority would be a prequisite for Reid in giving him Chairmanship of the Senate Appropriations Committee, a position Arlene Spector wants dearly.

Therefore, since Spector is willing to switch parties because he knows he can't win in the 2010 Republican primary in Pennsylvania, the key reason he says he switched to the Democratic Party, it's not far-fetched to believe that the Senator might be willing to switch his vote again, in favor of a new "iteration" of the Employee Free Choice Act, particularly if being named to the Appropriation's Chair just happens to be a part of the bargain.

Assuming he gets relected next year as a Democrat, Spector will be 80-years old. He would like to finish out what will likely be his last term in the Democrat-controlled Senate as the chair of the powerful Senate Appropriation's Committee.

Would the Gentleman from Pennsylvania let his at present position on the Employee Free Choice Act stand in the way this year, especially since he voted for the legislation in 2007? We think not. Rather we think Senator Spector is one "iteration" (an amendment or two to the bill) away from a yes vote on the EFCA. And Leader Reid, who will be heading up the EFCA legislation in the Senate, said today an "iteration" or two to the current bill as it is written will likely happen.

Franken makes 60

Democratic Senator number 60 could be coming soon for Senate Democrats.

Last week Democrat Al Franken, the former comedian and talk show host, received positive news from a court in Minnesota regarding his disputed victory over Republican Norm Coleman in the November 2008 Senatorial election in the state. The court ruled in Franken's favor that his about 300-vote lead over Coleman, who was the state's incumbent Senator, is valid.

Coleman, who is no longer a U.S. Senator pending a resolution on the race, is appealing the court's decision to the Minnesota Supreme Court, the state's highest court.

However it's possible that Minnesota Governor Tim Pawlenty, a Republican, could certify Franken as the winner before the Minnesota Supreme Court rules on the election, which would allow him to take the Senate seat.

In fact, many political observers in Minnesota have been saying that's likely to happen. But with Senator Spector's defection to the Democrats today, it's safe to say there will be added pressure on the Republican Governor from Minnesota, who is a GOP favorite to run for President in 2012, to hold off on certifying Franken, at least until the state's Supreme Court makes its ruling, either upholding the lower court's ruling in favor of Franken, or shooting the ruling down.

If Governor Pawlenty doesn't certify Franken, and the Minnesota Supreme Court upholds the lower court's ruling in favor of Franken --which the political and legal odds makers in Minnesota are currently betting will be the case -- the only recourse Coleman has is to then appeal the election to the U.S. Supreme Court.

Most U.S. Supreme Court-watchers are saying they doubt if the U.S. Supreme Court will hear the case. The court chooses the handful of cases it hears each term among many that are submitted to it.

Additionally, it's likely that if the Minnesota Supreme Court upholds the lower court's ruling in favor of Franken that the Governor will then certify Franken as the new Senator from Minnesota, since the court is that state's highest. Most doubt the Governor will want to go against the court's ruling if it upholds the lower court's opinion in favor of Franken because the potential negative political fallout from doing so could be significant.

And of course there's no guarantee that if Coleman does appeal such a ruling to the U.S. Supreme Court, and he might not, that the court will even hear the case.

There's another potential factor at play. Democrat Senate Majority Leader harry Reid could if he wants seat Franken as the Senator from Minnesota, siting the state court's ruling that he is the winner of the race as ample reason to do so.

It not clear what would happen but we've been told that it's unlikely the Republicans could do anything to stop such a move. And that Franken could serve in the Senate starting right after such a move by Reid unless or until the Minnesota Supreme Court ruled against the lower court's ruling, which would toss the election back into a stalemate with no winner.

Even 60 doesn't mean sure thing

The fillibuster-proof 60-vote majority for the Democrats, assuming Franken gets seated in the near future, of course assumes that all of the members of the Democratic Caucus, including its two Independents, will vote in favor of the Employee Free Choice Act bill when it comes before the U.S. Senate.

One Democrat, Senator Blanche Lincoln of Arkansas, has said she isn't sure she supports the legislation.

But it's still early. On the fence Senators like Lincoln can be persuaded.

And on the other side of the coin, other Democrat Senators from moderate -to- conservative states might decide to vote against the legislation, siting the poor economy as their primary reason for doing so. Of course, they are subject to deal making from the Democratic Senate leadership as well. Bucking the leaders isn't generally a good career move.

Further, moderate Democrats from conservative states might be concerned about voting in favor of the pro-organized labor legislation for political reasons, such as a fear of not being sent back to the Senate by their moderate -to- conservative constituents.

And this morning Senator Spector made a point of saying he isn't an "automatic 60th vote" for the Senate Democrats, signaling a continuation of his role in the U.S. Senate as a moderate swing vote as a Republican; a role often met with displeasure from his now former fellow Senate Republicans such as when he recently sided with Democrats, voting in favor of President Obama's nearly $1 billion economic stimulus package.

Good news to EFCA supporters: Spector back in play

But Spector's defection to the Democratic Party is overall good news to supporters of the Employee Free Choice Act (EFCA). His position of a couple weeks ago -- that he now is against the legislation although he voted in favor of it in 2007, the only Republican to do so at the time --will be much more malleable (to change back to his original position) now that he will be a member of the Democratic Party and Senate Democratic Caucus.

Additionally, we further suspect that if organized labor were to throw its support behind Spector in his 2010 bid for a sixth term in Pennsylvania, his position might become downright plastic, and he could do what isn't an unusual thing for elected officials to do, which is to change his mind and position once again, reverting back to his support of the Employee Free Choice Act as a freshly minted Democrat.

Being given an important committee chair by the Senate Democrat leadership, which we expect to happen, also could make Senator Spector's recent change from being pro-Employee Free Choice to against it, turn from plastic to down right making it melt away, thereby causing him to "see the light" and announce his support once again for the pro-organized labor legislation.

Tesco's Fresh & Easy

As we've reported and written about extensively in Fresh & Easy Buzz, the United Foods & Commercial Workers union (UFCW), which represents over 1 million unionized grocery store clerks in the U.S., Canada and Puerto Rico, has been conducting a campaign to unionize Tesco Fresh & Easy Neighborhood Market's non-union store-level employees since late 2007 when the first Fresh & Easy markets were opened. The campaign intensified in 2008.

Passage of the Employee Free Choice Act with its "Card Check" provision, in which rather than going through a "secret ballot" election process employees would be able to check off a box on a card indicating they support a union at their place of work, would make it much easier for the UFCW union to organize Tesco Fresh & Easy store employees. In fact, the union is banking on passage of the Employee Free Choice Act in order to unionize Tesco's Fresh & Easy, along with other non-union chains like Wal-Mart.

Most of the major supermarket chains in California, Nevada and Arizona where Tesco has its 119 Fresh & Easy combination grocery and fresh foods stores, such as Safeway Stores' Vons and Safeway, Kroger's Fry's and Smith's, and Albertsons, are unionized.

Others retail chains that sell food and groceries like Tesco's Fresh & Easy, Wal-Mart, Costco, Trader Joe's, Target and a couple others are non-union.

The UFCW union, as we've previously reported, has backed off somewhat so far this year compared to last year, in its aggressive, multi-front campaign to unionize Tesco Fresh & Easy Neighborhood Market's store-level employees.

However, according to our sources, the union is planning to once again intensify its campaign to unionize the Fresh & Easy store workers in the coming months. That return to a more aggressive campaign will kick off when United Kingdom-based Tesco, which owns and operates Fresh & Easy USA, holds its Annual General Meeting (AGM) later this year in the UK.

We will have more on what the UFCW will be doing in an upcoming piece.

[Below is a selected, linked bibliography of past stories and posts in Fresh & Easy Buzz about the UFCW union's campaign to unionize store-level employees of Tesco's Fresh & Easy Neighborhood Market (and related issues, including the Employee Free Choice Act), which currently has stores in California (Southern and Bakersfield), southern Nevada and Metropolitan Phoeniz, Arizona, in the Western United States.]

>February 13, 2009: Labor & Food Retailing: Kroger Co. Chains Sign New Contract With the UFCW Union in Vegas; What Happened to the UFCW Tesco Fresh & Easy Campaign?

>November 10, 2008: Food Retailing & Organized Labor: Tesco's Fresh & Easy Gets Some Company as the UFCW Union Launches Campaign to Unionize Wakefern's PriceRight Banner

>November 4, 2008: U.S. Organized Labor, Including the UFCW Union, is Feeling Good Tonight About A President Obama and Stronger Democratic Majority in Congress

>October 28, 2008: The UFCW Union, Tesco's Fresh & Easy, U.S. Labor Relations, and Next Week's Presidential and Congressional Election

>October 2, 2008: Tesco Fresh & Easy Denies Huntington Beach Store Employees Request to Be Recognized As A Union Store; Next Step Likley to Be Open Ballot Election

>September 26, 2008: News & Analysis: Employees At Two More Fresh & Easy Grocery Stores Could Soon Request UFCW Union Recognition From Tesco's Fresh & Easy

>September 17, 2008: Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market

>August 27, 2008: UFCW Union Reports Tesco Fresh & Easy Neighborhood Market's Prepared Foods Supplier to Labor Board For What it Says is Unfair Firing of Six Employees

>August 5, 2008: UNI Global Union Launches Tesco-Specific Alliance; Calls For Tesco Executives to Meet With UFCW Union Officials Over Fresh & Easy Neighborhood Market

>August 4, 2008: Pico Rivera, California City Council Members Boycott Fresh & Easy Store Grand Opening; Mayor Attends But Delivers Pro-UFCW Union Message to Execs

>July 30, 2008: UFCW Union Flyers On His Door Knob Cause Heat in 'The Pragmatic Chef's' Mental Kitchen; Others Wondering About the Negative Campaign As Well

>July 3, 2008: July 3, 2008: Mid-Week Fresh & Easy Roundup: Fresh & Easy Gets Caught in A Land Use Dispute; Those Near-Famous Mixed Grill Packs; More On Manhattan Beach

>July 4, 2008: Breaking News: UFCW Union Strikes Again With Anti-Tesco Fresh & Easy Brochure Drop in Neighborhood Surrounding New Manhattan Beach Store

>July 2, 2008: UFCW Union Pickets Out in Force This Morning At Manhattan Beach Fresh & Easy Store Grand Opening

>June 30, 2008: Breaking News: UFCW Union Launches Preemptive Anti-Tesco Fresh & Easy Brochure Distribution Drop on the Eve of Manhattan Beach Store Grand Opening

>June 26, 2008: Tesco 2008 AGM: Barack Obama Sends Second Letter to Tesco CEO Requesting the Company Meet With U.S. UFCW Union Leaders About Fresh & Easy

>June 22, 2008: Vocal Cast of Critics and Advocacy Groups to Attend Tesco's Annual General Meeting On Friday, June 27

>June 4, 2008: News and Analysis: UFCW Union Takes its Tesco Union Organizing Campaign Across the Pond to the United Kingdom Beginning Today

>March 26, 2008: United Food and Commercial Workers Union Begins its Spring 2008 Organizing and Communications Campaign Directed at Tesco's Fresh & Easy

>February 11, 2008: Supermarket Union President Asks Britain's Prince Andrew to Arrange A 'Sit-Down' With Tesco Fresh & Easy Neighborhood Market Senior Executives

>December 30, 2007: UFCW Union to Organize Fresh & Easy Clerks in 2008

[Follow Fresh & Easy Buzz around on Twitter.com at www.twitter.com/freshneasybuzz.]

Monday, April 13, 2009

Analysis: Major Retailers Costco, Whole Foods Market and Starbucks Propose Employee Free Choice Act 'Third Way' Compromise; What About Fresh & Easy?

Members of the United Food & Commercial Workers (UFCW) union and their families, like those pictured above, are out campaigning for passage of the Employee Free Choice Act, which will likely be voted on soon in Congress.

On March 22, the CEO's of two food and grocery retailing companies -- Jim Sinegal of Costco and John Mackey of Whole Foods Market, along with Howard Schultz, the CEO of Starbucks -- announced that the three retailers had formed what they are calling the ad hoc "Committee for a Level Playing Field for Union Elections."

Specifically, the three leading U.S. retailing chains say the group has come together to open dialogue about a "third way" approach to reform labor law. The group says its "purpose is to offer a new solution wholly distinct from the recently-introduced and controversial 'card check' bill, the Employee Free Choice Act (EFCA)."

All three retailers -- Costco, Whole Foods Market and Starbucks -- are currently non-unionized chains.

Heading up the "committee" is the highly-connected Washington, D.C. lawyer Lanny Davis, a Liberal Democrat. Davis, who is a partner in the Washington, D.C. office of the Orrick, Herrington and Sutcliffe law firm, most recently led Whole Foods Market, Inc.'s team of outside legal counsel (three firms) in the natural grocery chain's battle against the U.S. Federal Trade Commission's (FTC) nearly two year antitrust legal challenge against Whole Foods' 2007 acquisition of rival natural foods retailing chain Wild Oats Markets.

On March 6, 2009 the FTC and Whole Foods reached a settlement agreement which required Whole Foods Market, Inc. to only sell 13 stores (12 former Wild Oats stores and one existing Whole Foods banner store, sell 19 former Wild Oats stores that were already closed, and sell the acquired Wild Oats' brand and related intellectual property.

Lanny Davis, the spokesperson for the "third way" group, came onto the Whole Foods legal team in about January, 2009. Prior to that the FTC had made every indication that it planned to do all in its power to overturn the 2007 merger-acquisition. Just two months later, on March 6, a settlement agreement was reached. The politically-connected Davis, who is more of a lobbyist-lawyer than he is a litigator, was instrumental in Whole Foods' being able to settle the antitrust challenge.

Davis served as former President Bill Clinton's Special Legal Counsel in the 1990's, where he honed his skills by defending the President and now Secretary of State and former First lady Hillary Clinton against a myriad of charges -- Trooper Gate, Whitewater, the Monica Lewinsky scandal and impeachment -- just to name three.

Lanny Davis is a close personal friend of Hillary Clinton. They met while attending Yale Law School together in the 1960's and have been fast friends and political allies since. Davis was a key fund raiser for and supporter of Hillary Clinton's 2008 campaign for the Democratic nomination for U.S. President in 2008.

And when Barack Obama won the nomination, Davis became the leading public and private advocate within the Democratic party for her being named Vice President by President Obama.
When the then Democratic nominee and now President named Joe Biden as his Vice President, Davis became the leading advocate to the Obama team for Ms. Clinton's being named Secretary of State. She was named to that position by President Obama.

In making the announcement of the Costco-Whole Foods Market-Starbucks "third way" on the Employee Free Choice Act (EFCA) legislation coalition on March 22, Lanny Davis said: "The founding companies that formed the committee have consistently appeared on Fortune Magazine's 100 Best Companies to Work For. Their CEO's -- James Sinegal of Costco, Howard Schultz of Starbucks, and John Mackey of Whole Foods Market -- today introduce a 'Statement of Principles,' that would substantially level the playing field for union organizers, improve their access to employees and provide a fair chance to make their case for a union election."

The use of the term "third way" by the Lanny Davis-led retailer coalition is very interesting. Former President Clinton, who's administration Lanny Davis was a member of for a number of years as legal counsel (along with being close to both of the Clintons), often used the term "third way" to describe its centrist approach to politics and governing, meaning not right or left, or highly partisan, but using a "third way." [Click here for information about what's called the "third way" approach to politics and legislation.]

Interestingly, former Illinios Congressman Rham Emmanuel, who is currently President Obama's chief of staff and was a former staff member in the Clinton Administration, was one of the promoters of that "third way" strategy and position during the first Clinton Presidential campaign and during Clinton's first term. The "third way" didn't last much in President Clinton's second term, amid all the partisan ranker that took place.

Below are the six principals the Costco, Whole Foods Market and Starbucks CEO's have designated as what they want to be part of the debate (and a part of the eventual legislation if they get their way) in Congress over the Employee Free Choice Act (EFCA), which the U.S. House of Representatives is beginning to discuss and debate, and will likely vote on in the next couple months:

1) Secret Ballot. Guarantee the right of management and unions to require a secret ballot under all circumstances.

(2) Certification and Decertification Treated Equally. Permit management to initiate a decertification campaign through a secret ballot election just as employees and unions are presently able to initiate certification and decertification campaigns.

(3) Date Certain for Elections. Guarantee a fixed time period for the secret-ballot election--i.e., do not permit delays of an established day for a secret ballot to certify or decertify a union.

(4) Equal Access to Employees for Campaign Purposes. Level playing field for unions and management to access employees during non-working hours during the campaign period, e.g., permitting each to make presentations to employees at a neutral location concerning the issue of whether to form a union.

(5) Expedited Enforcement and Stricter Penalties. Expedited enforcement for serious and pervasive violations of law by labor and management and stricter penalties for serious and pervasive violations (e.g., unlawful discharges), including the penalty of mandatory injunctions when appropriate.

(6) Preserve Private Collective Bargaining. No mandatory arbitration that dictates contract terms, but stricter penalties and expedited enforcement for violations of good faith bargaining rules, including an expedited timetable to begin bargaining after union certification.

These six principals would guarantee a fixed time period for the secret-ballot election--by eliminating delays for establishing a day for a secret ballot to certify or decertify a union, Lanny Davis, representing the three retailers, says. The principles also include increased penalties for serious and pervasive violations of the law by labor or management and expedited procedures to impose them, Davis says.

Davis says the group strongly opposes the EFCA in its current form, which includes the abolition of a guaranteed option for management or employees to require a secret ballot, what they call a "bedrock principle of American democracy."

The group also opposes the EFCA's provision for government-imposed mandatory arbitration dictating terms of employment, which would overturn the time-valued tradition dating back to Franklin Delano Roosevelt and the Wagner Act of 1935 that preserves private, good faith collective bargaining, free of government intrusion or dictates, according to Davis and the group's position statement.

"We believe in and trust our employees, which is neither anti-union nor pro-status quo," says James Sinegal, the CEO of Costco. "We favor fairness and believe that the passage of a law based on these six principles will ensure a fair opportunity for workers to make an informed choice, with a secret ballot, whether they want a union or whether they wish to retain non-union status."

The coalition is asking other retailers that agree with its approach to join their group So far no other retailers we are aware of have joined Costco, Whole Foods Market and Starbucks in the coalition. It's only been three weeks since the retailers announced the formation of the group though.

The main aspect of the Employee Free Choice Act (EFCA) that's got non-unionized food and grocery retailers, along with most of corporate America and small businesses, up in arms is what's called the "Card Check Provision." Card check basically allows workers at non-union businesses (or stores in the case of retailers) to check a box on a card provided by a union indicating if the employee is for or against unionization. If a majority of the employees check "yes," that they are for a union shop, the company or business must go along with the worker-majority and unionize that particular store, plant or other business place.

Currently, employees, unions and employers go through a secret ballot process similar to how American citizens vote for their elected political leaders -- from city Mayor on up to President of the United States. The secret ballot process allows employers to lobby workers extensively if they desire to do so, attempting to persuade them that joining a union would be against their best interests and the interests of the company they work for.

Unions argue this process is unfair because it stacks the deck against unionization. Employers argue that's not true. It's a stalemate. And it's one of the primary reasons that organized labor wants the Employee Free Choice Act and its "Card Check" provision passed into law.

It's this "Card Check" provision of the EFCA that the Costco-Whole Foods-Starbucks coalition wants to change most.

Lanny Davis says that, contrary to assertions made by supporters of the EFCA, the card-check bill would, in fact, permit the exclusion of the secret ballot option. "It defies logic to say that once 51% of eligible voters sign the cards, the union that is entitled to automatic certification under EFCA would then ask for a secret ballot. That deprives the 49%, and perhaps some who signed the cards under pressure, the right to demand a secret ballot."

Organized labor says the "Card Check" provision in the current Employee Free Choice Act (EFCA) legislation before the U.S. House of Representatives allows for employees to choose a secret ballot election if they desire, or to choose the card check off process. As such, the unions say the bill offers full employee choice.

Davis says he has discussed the Costco-Whole Foods Market-Starbucks "Statement of Principles" with the staffs of almost two dozen Democratic and Republican Senators. Most, he said, indicated the Senators for whom they worked were "positive about our third way approach, including many Democratic Senators who were co-sponsors of EFCA and had voted for the same measure last year."

"I'm proud to call myself a pro-labor liberal Democrat who believes that reforms are needed to provide a level playing field for both labor and management, but not at the expense of a guaranteed option for a secret ballot by both workers and management and certainly not at the expense of preserving the historic process of private, voluntary collective bargaining, Davis says. "I consider the committee's third way' proposal based on these six principles to be favorable to labor and fair to management. "If I did not, I would not have taken on this assignment."

"Given the severe economic crisis facing America it is time to avoid the polarization that has occurred on both sides of this issue, and instead, come together to find a productive approach," Davis adds.

Organized labor's AFL-CIO responds

The AFL-CIO's Bill Samuel recently responded to the Costco-Whole Foods Market-Starbucks coalition and Lanny Davis' arguments in a statement. Below is what the union leader said:

"The Employee Free Choice Act is about protecting the fundamental freedom of workers to bargain with their employers for a better life and to join a union without corporate interference and harassment. The proposal being circulated by these companies falls short of meeting these standards.

We (AFL-CIO) are open to discussing the legislation with parties who are legitimately concerned with protecting workers. However, a proposal coming from corporations, some of whom have their own history of violating workers' rights, is simply not an alternative that lives up to giving workers back the freedom to form unions.

Of particular concern (to organized labor) is the removal of majority sign up – which exists under current law - and the removal of the arbitration provisions. Removing the arbitration provisions will allow companies to continue to stall and delay and refuse to negotiate a contract in good faith.

It appears the battle is joined.

U.S. House and the Employee Free Choice Act

The Employee Free Choice Act (EFCA) passed the U.S. House of Representatives in 2007 with a strong majority (241 members in favor, 185 against). Most Congressional observers expect the 2009 EFCA bill to pass in the House by an equally wide margin again this year when it is voted on.

The Democrats obtained an even stronger numerical House majority after the 2008 elections than they had in 2007. A majority win is all that's required to pass legislation in the House, unlike in the Senate where it takes 60 votes to pass a bill if the opposition party launches a filibuster of a given piece of legislation.

House Democratic speaker Nancy Pelosi is a major supporter of the Employee Free Choice Act (EFCA), and says getting the legislation passed is one of her key legislative priorities this year.

The U.S. Senate and the Employee Free Choice Act

The Employee Free Choice Act (EFCA) passed in the U.S. Senate in 2007 by a four vote majority -- 51 members for, 49 against. Forty seven Senate Democrats, the two Independents in the Senate, and one Republican -- Senator Arlene Spector of Pennsylvania who now says he opposses the EFCA -- voted for the bill in 2007. All of the Senate Republicans except Spector voted against the legislation in 2007.

But as mentioned above, majority does not rule in the Senate in most cases of legislation. Members of the minority party can filibuster a bill, which the Republicans did with the EFCA legislation in 2007. In order to beat a filibuster, 60 votes in favor of the bill are required. The Senate Democrats missed the mark by nine votes in 2007.

In addition, then Republican President George W. Bush was against the legislation, and planned to veto it if passed in the Senate. It takes those 60 votes in order to make a bill veto-proof. As a result, the Republicans were able to kill the EFCA bill in the U.S. Senate in 2007.

The Democrats gained a number of seats in the Senate in the 2008 election. But at a current 56 members they remain short of the full 60-member super-majority needed to prevent a filibuster. President Obama supports the EFCA though, so there is no concern over a Presidential veto as there was in 2007.

The Franken factor

The Democrats do have Senate member number 57 in waiting -- Former comedian Al Franken, who is ahead of Republican Norm Coleman by about 250 votes in what has become the longest-running vote recount in history in Minnesota. Coleman continues to challenge Franken's lead in the 2008 Minnesota Senatorial race. And the Democrats have refused to seat Republican Coleman, which makes sense since he hasn't won either, the former incumbent Senator from Minnesota, in the U.S. Senate, taking away his office. He remains in Minnesota challenging Franken's apparent victory.

Should the courts declare Al Franken the Democratic Senator from Minnesota, that would give the Democrats 57 votes in favor of the EFCA, assuming all of the other 56 Democrats vote in favor of the bill, which no longer is a lock as it was in 2007.

Additionally, If the two Independents -- Senator Bernie Sanders (I-Vermont) and Senator Joe Lieberman (I-Connecticut) -- vote in favor, as they both did in 2007, that would give the Democrats 59 votes, just one short of the required 60 votes needed to make any Republican filibuster moot.

That one vote, under the scenario, just recently went away with Republican Arlene Spector's changing his vote from "yea" to "nay" on the Employee Free Choice Act. But he could potentially change his mind back again, with enough enticement by the Democrat majority. Perhaps a federal government jobs' bill for recession-suffering Pennsylvania that is just too hard to refuse, for example?

The two Senate Independents are members of the Democratic Caucus and vote with the Democratic majority most of the time on domestic issues. Both support the EFCA at present. Lieberman is a former, long time Democrat who left the party after many of its leaders supported his Democratic challenger, Ned Lamont, in the last election.

Lieberman defeated Lamont in the Connecticut general election, changing his party affiliation from Democratic to Independent, which he still keeps. Lieberman supported Republican John McCain and not President Obama in the 2008 election. Despite that, President Obama reached out to the Independent and saved his Senate Committee Chairmanship for him, a debt owned the Democratic President, who supports the EFCA, by Joe Lieberman.

That means under this scenario -- Franken gets seated, all the Senate Democrats (57 with Franken) and the two Independents vote yes for a total of 59 votes -- that the Democrats will need to convince one moderate Republican to vote with the majority in order to pass the EFCA over any Republican fillibuster.

Pressure on moderate Senate Democrats

A coalition of business groups representing corporate America, agribusiness and small business (including the U.S. Chamber of Commerce) is now putting heavy pressure on a handful of conservative and moderate Democratic Senators like Senator Ben Nelson of Nebraska and Senator Bill Nelson of Florida (no relation) to vote against the Employee Free Choice Act (EFCA) legislation in its current form. The business coalition is particularly against the "Card Check" provision in any form being a part of the bill. Since most argue that "Card Check" is the key provision of the EFCA for organized labor, reaching some sort of compromise agreement will be very difficult.

Moderate Democratic Senators like Ben and Bill Nelson, along with a couple others from more conservative voting states, could find it politically difficult to vote for the EFCA though, because in the case of Senator Ben Nelson from Nebraska, which is a major farm state, agribusiness leaders in the state are dead against the legislation.

In the case of Senator Bill Nelson from Florida, his state is one of the hardest hit by the current recession. Business leaders are telling him that a vote for the EFCA by the moderate Senator would be a vote for killing jobs, attempting to put him in a no win situation if he supports the bill.

Of even more serious concern to the Senate Democrat leadrship is Senator Blanche Lincoln of Arkansas, who recently said she is going to have a difficult time voting for the Employee Free Choice Act (EFCA) as it's presently written. The supporters of the EFCA need her vote.

Another Democratic Senator who could go either way on the EFCA is Montana's John Tester, a moderate-to-conservative Democrat who won election in 2008 in a very traditionally Republican state. The first-term Senator wasn't in the Senate in 2007, when the last vote on the EFCA was taken.

The UFCW union and the Employee Free Choice Act

The United Food & Commercial Workers union (UFCW), which represents about 1.5 million unionized supermarket clerks in the U.S., Canada and Puerto Rico, is a major supporter of the Employee Free Choice Act (EFCA). The retail clerks union is currently devoting most of its financial and human resources to lobbying Congress, along with conducting a grass roots organizing campaign, to get the EFCA legislation passed this year.

You can read the UFCW union's position on the Employee Free Choice Act here.

The UFCW has conducted an aggressive campaign since early 2008 to unionize workers at Tesco Fresh & Easy's 116 grocery and fresh foods stores in California (Southern and Bakersfield), southern Nevada and Metropolitan Phoenix, Arizona. [Fresh & Easy Buzz was one of the first publications to report on the union's plans to organize Fresh & Easy store employees in an aggressive and comprehensive manner. Read our December 30, 2007 story here: UFCW Union to Organize Fresh & Easy Clerks in 2008.]

As we reported in this September 17, 2008 piece: [Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market], store-level workers at the Tesco Fresh & Easy Neighborhood Market grocery store in Huntington Beach (Southern) California formally requested of company management to be recognized as a union shop in September of last year.

In this October 2, 2008 story [Tesco Fresh & Easy Denies Huntington Beach Store Employees Request to Be Recognized As A Union Store; Next Step Likley to Be Open Ballot Election] we reported management's response to the store employees, which was to deny the request and suggest the store workers follow U.S. labor law rules and organize a secret ballot election if they desired UFCW union representation, which isn't an uncommon management response to such a letter. [See the bibliography at th end of this story for more reports and analysis.]

It's been six months since the Huntongton Beach store workers wrote their letter and Tesco Fresh & Easy's management denied the request. To date no secret ballot election has been held, nor is one planned as far as we are aware, at the Huntington Beach Fresh & Easy store. We recently talked to employees of the store who confirmed this situation.

Additionally, none of the employees at any other Fresh & Easy markets have requested union representation via letters to company management to date, based on our sources and research.[Related story - September 26, 2008: News & Analysis: Employees At Two More Fresh & Easy Grocery Stores Could Soon Request UFCW Union Recognition From Tesco's Fresh & Easy.]

The UFCW has, since late 2008, been far less aggressive in its campaign to unionize the Tesco Fresh & Easy store-level employees than it was for most of last year, as we wrote about in this piece [Labor & Food Retailing: Kroger Co. Chains Sign New Contract With the UFCW Union in Vegas; What Happened to the UFCW Tesco Fresh & Easy Campaign?] on February 13, 2009.

The union still has a major strategy to unionize Fresh & Easy though, along with numerous other non-union food and grocery retailing chains. Our sources and research tell us the UFCW's less aggressive approach to Tesco's Fresh & Easy over the last few months has more to do with its focus on getting the Employee Free Choice Act (EFCA) passed -- which then will make it much easier to unionize Fresh & Easy employees and all others at non-union chains -- than it does any less desire to unionize Tesco in the U.S.

The coalition's 'third way' and the UFCW

The UFCW has recently indicated, as have all of the U.S. labor unions, that it doesn't support the "third way" principles for the Employee Free Choice Act (EFCA) that are being suggested and advocated by the Costco-Whole Foods Market-Starbucks coalition.

However, with Al Franken yet to be seated as a U.S. Senator, Republican Senator Spector's changing of his position on the EFCA, and the increased pressure being put on moderate Democrats in the Senate by the business coalition against the Employee Free Choice Act (EFCA), some sort of compromise legislation is much more likely this year than it was in the period after the November 2008 election, in which organized labor helped elect a President (Obama) who is a major supporter of the EFCA, and saw a 57-member Democratic majority in the Senate, along with two Independents and one Republican, Senator Spector, all supporting the EFCA legislation, adding up to that magic 60-member filibuster-proof Democrat super-majority.

That 60-member super-majority is now gone, although lots of horse-trading and deal making will be going on by Senate Democrats to obtain it again on the Employee Free Choice Act EFCA).

Will other non-union retailers join the coalition?

In addition to Costco (which is ranked as the third-largest seller of food and groceries in the U.S. after Wal-Mart and Kroger Co. by a number of research fims) and Whole Foods Market, Inc. ($8 billion in annual sales), numerous top food and grocery retailers in the U.S. are non-union. These major retailers include: Wal-Mart (number one market share leader nationally in the U.S.); Target; Trader Joe's; and others.

And of course Tesco's Fresh & Easy -- which isn't a leading food and grocery retailer in the U.S. but is so globally, United Kingdom-based Tesco being the third-largest retailer in the world after number one Wal-Mart and number two Carrefour, which is based in France -- is a non-union grocery chain. Tesco, which is the number one food and grocery retailer in the United Kingdom, is unionized in Britain.

None of these retailers support the Employee Free Choice Act (EFCA) that we are aware of. Wal-Mart has publicly come out strongly against the legislation. We have yet to see a public position taken by Target, Trader Joe's or Tesco's Fresh & Easy. But, and you will have to trust us on this one, they are all against it.

The UFCW union has attempted to organize store-level employees at Wal-Mart, Whole Foods Market and Trader Joe's in the U.S. for many years, less so at Target. The union hasn't been able to get workers at one store in each of the three chain's unionized to date however.

Most of the leading supermarket chains in the U.S. -- Kroger Co., Supervalue, Inc. and Safeway Stores, Inc. (the top three) -- have all or many of their divisions and stores unionized, with employees represented by the UFCW. Numerous regional supermarket chains and independents, particularly in California and other stronger union states, are also union shops.

For example, in Southern California where Tesco has over half of its current 116 Fresh & Easy markets (the other slightly less than half are split between Arizona and Nevada), and where the grocery chain is headquartered, all of the leading supermarket chains -- Safeway-owned Vons, Kroger's Ralphs, Supervalu-owned Albertsons, Stater Bros. (the top four in market share) -- are unionized.

It will be interesting to see if Wal-Mart, Target, Trader Joe's, Tesco's Fresh & Easy -- all retailers that also position themselves as being progressive -- or any other non-union food and grocery (and other format) retailers join the Costco-Whole Foods Market-Starbucks "third way" coalition.

A major part of the positioning of the three retailers in forming the group and offering an alternative to the present EFCA legislation is that they are progressive retailers, as coalition spokesperson Lanny Davis has made a point of noting. Might other retailers that consider themselves in a similar "progressive" mode join the three? None have so far -- but it's still early.
Meanwhile, organized labor is showing no signs of interest yet in the Costco-Whole Foods Market-Starbucks proposal. And it's our analysis the unions won't unless it begins to look like the Employee Free Choice Act (EFCA) legislation isn't going to pass in the Senate -- it's a virtual lock in the House -- if and when it is voted on this year. The probability is high that it will be voted on in the U.S. Senate this year since House Speaker Pelosi says it will be in that body, perhaps very soon.

The Employee Free Choice Act issue and legislation is only beginning to heat up. It's going to get much hotter in the coming weeks and months. Stay tuned for continued and ongoing extensive reporting and analysis on the issue in Fresh & Easy Buzz.

[Below is a selected, linked bibliography of past stories and posts in Fresh & Easy Buzz about the UFCW union's campaign to unionize store-level employees of Tesco's Fresh & Easy Neighborhood Market (and related issues, including the Employee Free Choice Act), which currently has stores in California (Southern and Bakersfield), southern Nevada and Metropolitan Phoeniz, Arizona, in the Western United States.]

>February 13, 2009: Labor & Food Retailing: Kroger Co. Chains Sign New Contract With the UFCW Union in Vegas; What Happened to the UFCW Tesco Fresh & Easy Campaign?

>November 10, 2008: Food Retailing & Organized Labor: Tesco's Fresh & Easy Gets Some Company as the UFCW Union Launches Campaign to Unionize Wakefern's PriceRight Banner

>November 4, 2008: U.S. Organized Labor, Including the UFCW Union, is Feeling Good Tonight About A President Obama and Stronger Democratic Majority in Congress

>October 28, 2008: The UFCW Union, Tesco's Fresh & Easy, U.S. Labor Relations, and Next Week's Presidential and Congressional Election

>October 2, 2008: Tesco Fresh & Easy Denies Huntington Beach Store Employees Request to Be Recognized As A Union Store; Next Step Likley to Be Open Ballot Election

>September 26, 2008: News & Analysis: Employees At Two More Fresh & Easy Grocery Stores Could Soon Request UFCW Union Recognition From Tesco's Fresh & Easy

>September 17, 2008: Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market

>August 27, 2008: UFCW Union Reports Tesco Fresh & Easy Neighborhood Market's Prepared Foods Supplier to Labor Board For What it Says is Unfair Firing of Six Employees

>August 5, 2008: UNI Global Union Launches Tesco-Specific Alliance; Calls For Tesco Executives to Meet With UFCW Union Officials Over Fresh & Easy Neighborhood Market

>August 4, 2008: Pico Rivera, California City Council Members Boycott Fresh & Easy Store Grand Opening; Mayor Attends But Delivers Pro-UFCW Union Message to Execs

>July 30, 2008: UFCW Union Flyers On His Door Knob Cause Heat in 'The Pragmatic Chef's' Mental Kitchen; Others Wondering About the Negative Campaign As Well

>July 3, 2008: July 3, 2008: Mid-Week Fresh & Easy Roundup: Fresh & Easy Gets Caught in A Land Use Dispute; Those Near-Famous Mixed Grill Packs; More On Manhattan Beach

>July 4, 2008: Breaking News: UFCW Union Strikes Again With Anti-Tesco Fresh & Easy Brochure Drop in Neighborhood Surrounding New Manhattan Beach Store

>July 2, 2008: UFCW Union Pickets Out in Force This Morning At Manhattan Beach Fresh & Easy Store Grand Opening

>June 30, 2008: Breaking News: UFCW Union Launches Preemptive Anti-Tesco Fresh & Easy Brochure Distribution Drop on the Eve of Manhattan Beach Store Grand Opening

>June 26, 2008: Tesco 2008 AGM: Barack Obama Sends Second Letter to Tesco CEO Requesting the Company Meet With U.S. UFCW Union Leaders About Fresh & Easy

>June 22, 2008: Vocal Cast of Critics and Advocacy Groups to Attend Tesco's Annual General Meeting On Friday, June 27

>June 4, 2008: News and Analysis: UFCW Union Takes its Tesco Union Organizing Campaign Across the Pond to the United Kingdom Beginning Today

>March 26, 2008: United Food and Commercial Workers Union Begins its Spring 2008 Organizing and Communications Campaign Directed at Tesco's Fresh & Easy

>February 11, 2008: Supermarket Union President Asks Britain's Prince Andrew to Arrange A 'Sit-Down' With Tesco Fresh & Easy Neighborhood Market Senior Executives

>January 2, 2008: Sacramento Bee on UFCW Union and Fresh & Easy

>December 30, 2007: UFCW Union to Organize Fresh & Easy Clerks in 2008

[Follow Fresh & Easy Buzz around on Twitter.com at twitter.com/freshneasybuzz.]

Friday, February 13, 2009

Labor & Food Retailing: Kroger Co. Chains Sign New Contract With the UFCW Union in Vegas; What Happened to the UFCW Tesco Fresh & Easy Campaign?


Las Vegas Market Region -- and Beyond

Kroger Co., the largest U.S. supermarket chain and the number three seller of food and groceries nationally in the country in terms of market share, (after number one Wal-Mart Stores, Inc. and Coscto), says it has reached agreement with the United Food & Commercial Workers (UFCW) union on a union contract for store-level employees in the Las Vegas, Nevada Metropolitan regional market.

Kroger Co. operates two supermarket chains in the Las Vegas Metro market -- Smith's Food and Drug and Food 4 Less.

The compromise contract agreement was signed with Las Vegas-based UFCW local 711, according to the union and Kroger Co. The local represents 2,800 Smith's and 900 Food 4 Less store-level workers at a combined 47 Smith's and Food 4 Less stores in the Las Vegas Metropolitan region.

"This agreement maintains quality jobs and affordable health care for our associates and their families in this challenging economy and keeps our stores competitive," Jim Hallsey, president of Smith's Food and Drug, and Dave Hirz, president of Food 4 Less, said in a joint statement issued by Kroger Co.

The UFCW union local and Kroger had been negotiating over a new contract for a considerable amount of time. Among the issues in the negotiations were health care and job security.

Vegas, supermarkets and the UFCW

The Las Vegas Metropolitan region is one of three markets where Tesco operates its 112 Fresh & Easy Neighborhood Market combination grocery and fresh foods stores. The other two markets are Southern California and the Phoenix, Arizona Metropolitan region. There are about 35 Fresh & Easy markets in the Las Vegas Metro region.

Unlike Kroger's Smith's Food & Drug and Food 4 Less and most of the other supermarket chains in the Las Vegas, Nevada region -- as well as those in California and Arizona -- Tesco's Fresh & Easy is non-union.

Other major chains in the three markets that are unionized include Safeway Stores, Inc. (Safeway and Vons banners in Southern California, Nevada and Arizona), Ralphs (Southern California) and Fry's (Arizona) (both Kroger Co.-owned), Albertsons (Southern California, Nevada, Arizona) and a number of others, including smaller, privately-held grocery chains like 18-store Gelson's in Southern California and some others.

Most of the chain and larger, multi-store independents (and even some single-store operators) in the three markets are UFCW-union affiliated. But like Tesco's Fresh & Easy, Wal-Mart, Trader Joe's and Whole Foods Market, all major food retailers with numerous stores in the three markets, aren't unionized either.

UFCW in relative hibernation over Tesco Fresh & Easy

As regular readers of Fresh & Easy Buzz know from our extensive coverage of the issue throughout 2008, the UFCW made Tesco's Fresh & Easy its prime target in terms of non-union food and grocery retailer unionization campaigns last year.

The UFCW had its closest chance to achieve potential unionization at Fresh & Easy when employees of the Fresh & Easy market in Huntington Beach, California sent a letter to Tesco Fresh & Easy Neighborhood Market's senior management at corporate headquarters in Southern California, requesting to be recognized as a UFCW-affiliated union store.

The company responded to the store employees, telling them they were welcome to follow established procedures and hold a "secret ballot" vote on UFCW-affiliation and becoming a union store in accordance with U.S. Department of Labor guidelines. [Read our report on the store-issue in this September, 2008 piece: [Store Workers at Huntington Beach Fresh & Easy Demand Union Recognition From Tesco Fresh & Easy Neighborhood Market.] Such a response by a non-union grocery retailing company is common; it's the norm rather than the exception.

The UFCW said at the time it planned to go forward and work with the Huntington Beach store employees and to eventually hold a vote on unionization.

However, its been about six months, September, 2008 to the present, and no Huntington Beach Fresh & Easy store employee union vote has taken place yet.

Political developments and UFCW's Tesco Fresh & Easy campaign

Of course, since September, 2008 much has happened politically in the U.S. Most specifically for the UFCW, Barack Obama was elected President, with much support by organized labor, including the union which represents about 1.5 million unionized supermarket workers in the U.S., Canada and Puerto Rico.

President Obama, along with the unions and the Democratic majority in the U.S. House of Representatives and U.S. Senate, are in favor of the Employee Free Choice Act legislation and its "Card Check" provision, which instead of a "secret ballot" (the current process) vote (which isn't as easy a process as it sounds), would only require employees in all industries, including food and grocery retailing, to check "yes" on card if they want to join a union.

If the majority of say the 25 employees at a Fresh & Easy market checked yes under "Card Check," they would be certified as a union shop. The secret ballot process is much more elaborate and longer. It also allows companies to meet with and attempt to convince employees not to join the union during the process, subject to U.S. Labor Law provisions of course.

Most of corporate America, along with the U.S. Chamber of Commerce and other business trade groups, and the majority of Republicans in the House and Senate, are against the Employee Free Choice Act and its "Card Check" provision. They argue the "secret ballot" is the only fair way to hold a unionization vote, comparing the process to the "secret ballot" voters cast in electing their representatives.

The unions and other supporters, including the majority of Democrats in Congress and the President, challenge that, saying employees should have a right to an easy way, like "Card Check," to say "yes" or "no" to joining a union. They also argue voting for those who represent citizens in public office is far different than an employee electing to join a union or not.

According to a couple of our sources, the UFCW has been so much less active in its efforts to unionize Tesco's Fresh & Easy so far this year because it is waiting for Congress to put the Employee Free Choice Act with its "Card Check" provision up for debate and eventual vote in the House and Senate.

House Democratic Leader Nancy Pelosi, from California, has said she wants to introduce the Employee Free Choice Act legislation this year. Democratic Senate Leader Harry Reid, from Searchlight, Nevada, hasn't said yet if he will introduce the legislation in the Senate this year.

The Employee Free Choice Act was voted on in 2008 by both the House and the Senate. It passed by a majority in the House, where just a simple majority is needed to pass legislation, but failed to gain 60 votes in the Senate, which requires that many votes, called a Supermajority, in order to pass legislation that is opposed and filibustered by the opposition party, which the minority Senate Republicans did successfully last year. As a result, the legislation failed to get the required 60 votes in the Senate and went away. President George W. Bush has promised he would not sign the legislation if it did pass the Senate.

However, the Democrats now have a considerably larger majority in the Senate after the 2008 election than they did in 2008. There are currently 57 Democrats in the Senate, and possibly soon 58, if former comedian and radio talk show host Al Franken is confirmed as the Senator from Minnesota in that disputed election, which looks like will happen soon. Additionally, the two independents in the Senate voted for the Employee Free Choice Act the last time around. That could give them the needed 60 votes, assuming all Democrats voted in favor of the legislation. One or two moderate Republicans also could vote in favor of the legislation if it is raised this year.

President Obama has already said he would sign the Employee Free Choice Act if passed by Congress. However, it isn't at the top of his agenda right now -- the economy is.

And the President and his top aids are also concerned about the legislation being brought up anytime soon in 2009 (they prefer 2010) out of fear it will cause a backlash with unemployment at such record highs, and growing. The fear is that a debate on the Employee Free Choice Act this year would give Republicans a perfect issue to hammer the new Democratic President with, arguing as they did last year (but much louder this time) -- when the economy was much better than it is now and when unemployment was much lower than it is at present -- that passing the legislation would amount to a "job-killing" bill at a time when job loss is already skyrocketing.

The President's men also feel it would be a political gift to the conservative radio talk show hosts like Rush Limbaugh and others who have already said that if the Employee Free Choice Act comes up in Congress this year they will use it as a "job killing" hammer against the President and Democrats. One can almost visualize Rush Limbaugh encouraging House Speaker Nancy Pelosi to bring the legislation up in the House in the same way a fully-committed carnivore urges a vegetarian to just taste one bite of the beef Prime Rib so she can know what it actually tastes like to better make her case for vegetarianism.

Regardless of whether or not the UFCW is waiting for the Employee Free Choice Act and its "Card Check" provision to pass or not, it is fair to say that in terms of last year's super-aggressive and highly coordinated efforts to unionize Tesco Fresh & Easy store-level employees, thus far this year the UFCW has been in relative hibernation.

For example, while still picketing at some Fresh & Easy stores, the UFCW hasn't thus far this year demonstrated anywhere near as strongly as in 2008, when it had union reps at every new store opening, holding up signs, handing out literature and encouraging shoppers to not shop at the non-union stores.

Additionally, for most of 2008 the UFCW conducted a vocal and aggressive lobbying and public relations campaign both in the U.S. and in the United Kingdom where Tesco is headquartered, designed to draw attention to the fact Tesco's Fresh & Easy is non-union and to gain support from store employees, politicians and the media for its unionization efforts. Thus far this year that mighty UFCW 2008 PR machine has been near-silent.

Lastly, throughout 2008 UFCW representatives paid regularly scheduled visits to numerous Fresh & Easy stores. The regular visits are designed to get to know employees, build relationships with them and encourage them to join the unionization movement. We've talked with numerous Fresh & Easy store employees who say they haven't had a visit from UFCW representatives yet this year. This might not be unusual except that we talked to many of these same employees throughout 2008, and they told us then the UFCW representatives visited the stores on a regular basis, often once a month.

Unionization in an economic recession-depression

We can tell you that despite what appears to be the current hibernation of the UFCW regarding its Tesco Fresh & Easy unionization campaign, that the union's campaign to achieve that goal isn't over. But it is interesting how the union seems to have let the momentum they had going for most of last year fall off so much since the fall of 2008 to the present.

Of course, the economy is in shambles and job loss growing by the tens of thousands each day. Perhaps the union is being sensitive to this fact from a political standpoint. After all, this isn't the best time for employees of any company to be pitching to join a union to a non-union employer; not while they feel they could be next to lose their jobs because of the bad economy.

It's tough out there -- and getting tougher. Laid off formerly high-paid workers who haven't been able to find work in their respective industries for many months are hoping they can land jobs such as the $10 an hour part-time positions with medical insurance that Tesco's Fresh & Easy is offering. And there are few of those types of retail jobs out there right now as there generally has been in past recessions, not with America's retailers laying off 45,000 workers in January alone, with tens of thousands more to come this month.

You know that old saying, right: "It's a recession when your neighbor losses his job, it's a depression when you lose yours." More and more of our neighbors, as well as more and more of "us" are losing jobs. Call it a recession, call it a depression, depending on where you are in it. But another old saying is: "I know what it is when I see it." And "it" isn't looking good. As British Prime Minister Gordon Brown started calling "it" last week -- "The Depression."

It looks like the Kroger Co. employees in the Las Vegas Metropolitan region, which is one of the hardest hit in the U.S. by the recession and job losses, got their union contract renewal just in time.

Reader Resource

>[Click here for a selection of past stories from Fresh & Easy Buzz about the UFCW union-Tesco Fresh & Easy issue.]

>[Reader Note: You can follow Fresh & Easy Buzz on Twitter.com at: www.twitter.com/freshneasybuzz]

>Reader Comments: We invite reader comments on this story, and particularly want to hear your views on the issue of joining labor unions in times of serious economic recession, like at present. Is it a "good" thing to do in terms of it offering better pay and job security to workers? Is it a "job killing" proposition, as some suggest? What's your view? Just click on the "comments" link below to leave your comment.