Posted on 12/21/2005 5:39:01 PM PST by BurbankKarl
The Los Angeles City Council on Wednesday passed an ordinance requiring buyers of grocery stores in the city to retain workers at the acquired stores for 90 days.
The landmark ordinance, which passed on a veto-proof 11-2 vote, marks the first time the city has stepped into the hiring and firing decisions of private sector companies that do not receive city funds. In approving the measure, the council rejected the opposition of grocery executives.
Assuming Mayor Antonio Villaraigosa signs the ordinance in coming days – and he’s given no public indication that he won’t sign it – grocers are expected to file a legal challenge to the ordinance on the grounds that the city has exceeded its authority in regulating private sector transactions.
Besides retaining workers for 90 days, the acquiring company must perform a written evaluation of every worker at the store that’s been sold. Those that receive satisfactory evaluations must be considered for permanent jobs with the new owners.
The timing of the ordinance’s passage was crucial, coming just six days after published reports surfaced saying Albertson’s Inc. was considering several bids and was close to accepting a buyout offer. The Boise-based chain has 332 stores in Southern California.
The stated intent of the ordinance, proposed by outgoing Council President Alex Padilla, is to protect the health and safety of store patrons during an ownership transition, especially to ensure that experienced workers are available to handle produce, poultry and other sensitive items.
“Those who handle our meat and poultry should be of concern to all levels of government,” Padilla said.
Supporters also say the ordinance would give workers at an acquired store time to hunt for another job and provide a financial cushion.
“This ordinance would give more dignity to the workers during the transition,” said Councilman Bill Rosendahl.
But grocery store representatives argued that the ordinance would place additional burdens on grocery companies buying stores, especially in underserved areas, prompting some to bypass Los Angeles for nearby communities with no such ordinance.
“This ordinance would eliminate options. As a company, we will not purchase a store where we are forced to keep an employee base,” said Peter Perez, an executive with Bodega Latina Corp., which operates seven stores in Los Angeles and Orange counties.
That concern was echoed by Councilman Bernard Parks, who voted against the ordinance. “People say that if this ordinance passes, the sky will not fall. Well, the sky has fallen in my district. We have stores that have closed. In my community, new buyers don’t come. The grocers before you today are the only ones left.”
Councilman Greig Smith, who cast the only other “no” vote, said the ordinance would open the city up to legal challenges. After several questions of representatives from City Attorney Rocky Delgadillo’s office, Smith said he was not reassured that the city had a strong case to defend in court.
How long before Atlas finally decides to shrug?
He already did. Nobody noticed.
Word on the street is that Albertsons is shutting down. I don't know how the City of LA can tell buyers they have to employ the workers for three months. That is insane.
Word on the street !? The liberals are running ads on TV saying "stop Albertsons from closing in order to reopen under a new brand name catering to upscale clientele" - meaning, please continue catering to lower margin liberal rabble in spite of the fact that there are market opportunities elsewhere. It boggles my mind. It's communism! And they're unabashedly advertising it on TV!
Calling Dr. Howard...Dr. Fine...Dr. Howard...
And who will enforce it? And how?
Funny how the new rule does not appear to mandate that any "retained" employee be offered the same pay or schedule (or even recognized union rep) after acquisition, so it's essentially meaningless.
The article I read said most of the stores are closing down. Could have changed in the last week I suppose...the real estate is worth more than the supermarket that sits on top of it.
My niece works at a grocery store while going and paying for her college education. Yes it can be done despite what most people think. She knew the store was about to close so she went and got another job. No big deal. It is called thinking.
The simple solution would be to amend the agreement and require Albertson's to shut down the LA stores before the deal is closed. End result would be that the employees there would be out on the street sooner than the other Albertson's employees.
How long before Claire Wolfe decides that it's time to shoot?
"It's too late to work within the system, but too early to shoot the bastards."
-- Claire Wolfe, 101 Things to Do 'Til the Revolution
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