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Arcadia Weekly Jul 25, 2011
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Justices Reject Industry Claims, Uphold Los Angeles Law
Protecting the Jobs of Employees After Ownership Change
Decision Comes as Supermarkets Face Increasing Criticism Over Efforts to Cut Health Care Benefits
Dismissing claims by the California grocery industry, the state Supreme Court today upheld the right of local governments to protect the jobs of grocery employees following an ownership change.
The 6-1 ruling overturns an appeals court decision and reinstated a Los Angeles ordinance that had been challenged by the grocery industry. In rejecting the industry’s case, the Court ruled that the ordinance “is fully consistent with both the state and federal equal protection clauses” and is not preempted by state or federal law governing health and safety standards or collective bargaining.
“This is an important victory for tens of thousands of grocery workers who now don’t have to worry about losing their jobs simply because of a corporate ownership change,” said Roxana Tynan, deputy director at LAANE, which intervened in the case to defend the ordinance. “This decision is good for our families, our communities and our economy, which have already been hit hard by record unemployment in the past several years.”
The L.A. grocery worker retention ordinance was enacted after a wave of supermarket ownership changes in which longtime employees were abruptly laid off. In passing the law, City Councilmembers argued that both the rights of workers and the interests of consumers would be protected. Similar legislation limiting layoffs in the wake of ownership changes has been enacted by numerous local and state governments.
The ruling comes as supermarket chains in Southern California are trying to make major cuts in health benefits for grocery employees, a stance that has triggered a growing chorus of community criticism.
“Given the grocery industry’s efforts to eliminate basic job protections for its own workers, it’s hardly surprising that mega-corporations like Ralphs, Vons and Albertsons are now trying to eviscerate health care coverage for those same employees,” said Rabbi Jonathan Klein, executive director of Clergy and Laity United for Economic Justice L.A. (CLUE-LA). “This ruling sends a clear message to the industry: live up to your rhetoric and treat your employees fairly.”
Grocery workers were elated with the high court’s decision.
“This means so much to me and my family,” said Jackie Gitmed, who has worked at Ralphs for 35 years. “I have had co-workers lose their jobs overnight when a company changes hands, and I’ve seen the toll it takes on them and the customers. Now we will all be protected.”
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