By Alejandra Reyes-Velarde | CalMatters
California Governor Gavin Newsom has vetoed a bill that aimed to provide severance pay for grocery store workers who are laid off due to mergers or acquisitions. The veto was announced on Sunday night, following the governor’s signing of two other bills for grocery worker protection. Advocates have been advocating for these measures since Kroger and Albertsons announced their plans for a major merger last fall. The deal, which is worth $24.6 billion and involves two of the largest grocery chains in the US, is currently under antitrust scrutiny and could potentially occur in early 2024 if approved.
According to Newsom, he vetoed Senate Bill 725 because there are already existing laws in place to protect these workers. He pointed out the state’s Grocery Worker Retention law, which has required companies involved in mergers or acquisitions to retain existing workers for at least 90 days since 2016. Additionally, the federal Worker Adjustment and Retraining Notification Act mandates that companies with 100 or more workers must give a 60-day notice before mass layoffs. Newsom also mentioned that affected workers can access unemployment insurance.
The potential merger between Kroger and Albertsons could greatly impact California, as Kroger operates 233 stores and Albertsons operates 579 stores in the state. The Los Angeles-based research group Economic Roundtable reported that 115 of 159 Albertsons stores in Los Angeles and Orange counties are located within two miles of a Kroger store. The merger could result in the loss of 5,750 jobs in the Los Angeles region.
Counting merger’s costs
The United Food and Commercial Workers Western States Council, the union that represents many California grocery workers, has expressed concerns about potential layoffs resulting from the merger. The union’s statement highlighted the possible closure of grocery stores, particularly in food deserts and rural areas, leading to increased food costs and a reduction in product variety. However, the companies involved denied these claims, stating that no frontline employees would lose their jobs as they plan to sell hundreds of stores to C&S Wholesale Grocers, which has agreed to maintain store jobs and bargaining agreements.
Despite the denial, some grocery workers still desire legal protections to feel more secure. One of these workers, Judy Wood, expressed disappointment in Newsom’s veto, emphasizing that essential workers like her stood on the frontlines during the pandemic but now feel let down. Wood, who has worked in grocery stores for 36 years, plans to leave California due to the difficulty of living on her hourly wage of $21.02.
‘Essential heroes’
State Senator Lola Smallwood-Cuevas, the author of SB 725, expressed disappointment in the governor’s veto and highlighted the vulnerability of essential workers to potential mergers. She believes that the majority of these workers already struggle to support their families. However, prior to the veto, the United Food and Commercial Workers praised Newsom for signing two companion bills that strengthen protections for grocery store workers.
Assembly Bill 853 now requires grocery or drug store companies to notify the state attorney general at least 180 days before finalizing a proposed merger or acquisition. They must also submit an impact analysis of the deal, which includes assessing effects on food deserts, prices, experienced grocery workers, unemployment, wages, and benefits. AB 647 strengthens California’s existing Grocery Worker Retention Law by extending the 90-day retention provision to include warehouse workers and implementing stronger enforcement mechanisms.
Mark Ramos, president of the United Food and Commercial Workers Western States Council, expressed gratitude for the two bills but expressed concern that the veto could leave displaced workers without adequate financial support if the merger proceeds. He questions whether grocery workers, once hailed as essential heroes by Newsom, are now considered disposable.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
