Editorial: Grocery Bill is Veiled Attempt to Boast Union Organizing and Should be Vetoed

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Reprinted from The Sacramento Bee (July 21, 2015)

What once was old is new again. This old adage rings true, especially with regards to California public policy. Assembly Bill (AB) 359 authored by Assemblywoman Lorena Gonzalez (D-San Diego), which is on Gov. Jerry Brown’s desk awaiting signature or veto, is just that. It is simply a retread of a long line of failed attempts to force new burdensome regulations on California businesses.

Specifically, AB 359 would impose mandatory worker retention standards upon change of ownership for traditional grocery stores over 15,000 square feet.  This measure may make for a catchy sound bite or fall in line with a campaign platform—but AB 359 is an unnecessary proposal riddled with unintended consequences that will limit food access, lead to job loss and hurt family-owned companies.

AB 359 is at the top of the California Chamber of Commerce “Job Killers” list, and rightfully so. Prior attempts to establish the unprecedented policy of taking away a private employer’s right to choose their own workforce have either been rejected by the Legislature or has been vetoed by the sitting Governor.

AB 359 won’t create stability, and instead will cause blight when failing grocery stores are forced to close their doors rather than sell to a company whose format and business model better reflect the needs of the community they serve.

If the demographics in a neighborhood change, the original store format may no longer be suited for that community. Generally speaking, grocery store owners look for a buyer whose business model meets the needs of the changing community. AB 359 will stall transactions or, worse, scare off potential buyers who would be subject to a host of new regulations including burdensome record keeping requirements, different workforce standards and greater potential for frivolous litigation. All the while big-box retailers, chain pharmacies and others would not be subject to the same set of standards.

The average size of a traditional supermarket, regardless of ownership, is about 45,000 square feet according to the Food Marketing Institute. With razor thin profit margins, often 1 to 2 percent, sales volume is essential to success in the traditional grocery industry. To yield a profitable volume a store must have tens of thousands of products. Setting aside a few uniquely positioned business models, traditional grocers must operate at a larger footprint in order to offer the variety of products customers are seeking; this includes many independent and family owned companies. AB 359’s arbitrary footprint threshold of 15,000 square feet reflects a lack of experience and knowledge of the grocery industry.

The author has failed to produce any substantial evidence that warrants this targeted attack on the industry.  In fact, on the contrary, the grocery industry saw one of the largest and most successful California-based mergers earlier this year between two major grocery chains. The merger resulted in 83 store locations sold in Southern California, purchased by a single buyer, who voluntarily retained store employees. The buyer even honored the collective bargaining agreements already in place.

AB 359 creates an unlevel playing field for small family-owned businesses by exempting out some of the largest retailers in the country and the author never produced examples of Californians being put out of work explicitly due to grocery companies merging.

The answer is clear – AB 359 is nothing more than a Trojan horse designed to assist labor groups in their organizing efforts.

If a new employer is forced to retain a 50 percent plus one unionized workforce for 90 days, a federal statute known as the “Successor Employer Doctrine” is triggered. This means that the existing workforce is automatically recognized as the bargaining unit – without a vote by the employees.

One of the chief responsibilities of the legislature is to pass responsible, economically viable policies aimed at balancing the needs of its citizens, not green-lighting policies that will make it easier for big labor to organize.  AB 359 is bad public policy and is a solution in search of a problem that simply has not been identified. We urge Governor Brown to veto this bad legislation.

Ronald K. Fong
President  & CEO, California Grocers Association

Rex S. Hime
President  & CEO, California Business Properties Association

Onerous Grocery Worker Retention Bill Heads to Governor

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The California State Senate on July 13, passed AB 359 (D-Gonzalez), a measure that would impose onerous worker retention requirements on traditional supermarkets, on a 22-14 vote. The bill now heads to the Governor’s desk where he will have just 12 days to sign or veto the legislation.

While the vote came down largely along party lines, Big Labor was unable to secure support from four Democrats including Senators Cathleen Galgiani (D-Stockton) and Steve Glazer (D-Orinda) who voted no along with Senators Robert Hertzberg (D-Van Nuys) and Lois Wolk (D-Davis) who did not vote. Republican Senator Jeff Stone (R-Riverside County) spoke in opposition to the bill.

Mirroring ordinances in five localities, including Los Angeles and San Francisco, the bill seeks to require successor owners to retain eligible employees for at least 90 days under terms different than other company employees. Inexplicably, the bill exempts some of the largest competitors in the grocery space including superstores, chain pharmacies, and dollar discount stores.

CGA argued that the measure would create an unlevel playing field for California’s traditional supermarket sector as those companies would face additional barriers to store development and in sales transactions. In addition, we outlined concerns with significant avenues for litigation against companies. The California Chamber of Commerce has placed the bill on its annual “Job Killer” list.

 

CGA Statement Regarding California Senate Passing AB 359

We are extremely disappointed in the Senate’s action today in passing Assembly Bill 359. California Communities need more grocery options, not fewer. For the Legislature to approve a measure that unfairly singles out traditional grocery stores will only exacerbate food access and blight challenges in our State. Even the author acknowledges there is no identified problem and that this measure targets companies she herself stated have been, “…for the most part responsible employers in our state for a very long time.”

This bill will do little more than provide disincentives to grocery expansion and provide a competitive advantage to a select few – ironically those that do not generally provide the quality food options and middle-class jobs found in traditional markets. We applaud those members of the Senate—Democrats and Republicans alike who stood up for local communities and the grocers that support them. We look to Governor Brown to veto this poorly drafted attack on California’s grocery industry.

Ron Fong
President/CEO
California Grocers Association

Cool Weather Greets Foundation Golfers

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Unusually cool weather made for perfect golf conditions at the 2015 CGA Educational Foundation Southern California Golf Classic at Pacific Palms Resort in Industry, Calif., on July 8.

This year’s event was nearly 20 degrees cooler than in 2014 – a statistic that did not go unnoticed by the full field of grocery retailers and suppliers playing in this year’s tournament.

“The weather couldn’t have been better,” said CGAEF President Ron Fong. “Perfect weather for a perfect event to help raise funds for the Foundation’s college scholarship and tuition reimbursement programs. Thank you to all those who played and to the many event sponsors.”

Dan Benart, Stater Bros. Markets
Dan Benart, Stater Bros. Markets

In addition to a great day of golf, attendees heard from Dan Benart, a grocery supervisor for Stater Bros. Markets, who shared how the Foundation’s programs helped his children reach their education dreams and how he now is utilizing the Foundation to further his professional career.

Dan was introduced by newly elected Foundation Board of Trustee Tom Seaton, Stater Bros. Markets.

The Foundation’s Northern California tournament is July 21, 2015 at Blackhawk Country Club in Danville, Calif.

Congratulations to this year’s winners!

First Place
Michael Robinson
Lee Deminski
Alex Corsaro
Scott Anderson

Second Place
John Bonicatto
Diana Godfrey
Michael Paul
Mike Mortensen

Third Place
Mike Casazza
Sheryl Salazar
Rick Cruz
Pat McDowell

Closest to the Pin
Women – Diane Davilla
Men – Bob Kenneoy

Longest Drive
Women – Elizabeth Cherry
Men – Mike Paul

[FAG id=3091]

CGA Seeks In-House Controller/Accounting Executive

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In-House Controller/Accounting Executive

CGA_Logo_rgb2The California Grocers Association is a statewide trade association representing the food industry since 1898. CGA represents approximately 300 retail members operating over 6,000 food stores in California and Nevada, and approximately 150 grocery supplier companies. Retail membership includes chain and independent supermarkets, convenience stores and mass merchandisers.

SUMMARY 

This position is currently being handled by an outside CPA firm but the Association has grown to the point that an in-house full-time position is preferable. This position will report directly to the Association’s President/CEO and at an appropriate time in the future, to the Senior Vice President of Administration. There will be substantial interaction with members of the organization and several boards and committees affiliated with the association including a separate educational foundation. Presentations to various Boards, committees and groups will be necessary and frequent. The Association owns a small building in Sacramento, which will require managing the accounting needs for CGA and tenants.

ESSENTIAL FUNCTIONS 

1. Strong accounting skills including experience with budgeting, financial statement analysis and preparation.

2. Strong organizational and prioritizing skills.

3. Ability to self-direct and self-manage multi faceted work load of a busy association.

4. Contributing and compatible team player. Works closely with the association’s senior management team and various boards and committees.

5. Ability to understand, organize and improve current procedures and tasks.

6. Helps CEO and Senior Management Team manage several boards, financials, financial institutions and outside financial consultants.

7. Knowledge in investments, 401 (k) benefits and payroll management mandatory.

8. Manage accounting functions for Association’s building and tenants.

9. Strong Excel, Quick Books, SAGE, Crystal and accounting software skills.
MINIMUM QUALIFICATIONS 

  • Minimum of five years of experience working as a controller for a large company or preferably an association required. Similar experience at a CPA firm also acceptable.
  • Strong presentation and interpersonal skills are a premium quality.
  • Strong verbal communication skills and the ability to answer questions, present solutions and suggest efficiencies are a premium quality.
  • Four-year Bachelors Degree in accounting mandatory
  • Current CPA credentials preferred

SUPERVISES 

  • Minimum: One full time staff member and accounting manager

PHYSICAL DEMANDS 

Employee may experience the following physical demands for extended periods of time.

  • View computer monitors
  • Sitting
  • Standing for community functions, presentations, trade shows, etc.
  • Travel to other locations to represent CGA (Minimum 10%)

WORK ENVIRONMENT 

Work is performed in a corporate office environment in downtown Sacramento.

The California Grocers Association provides medical, dental, vision and chiropractic insurance for the employee and eligible dependents, and life insurance and long term disability for the employee. The Association also provides a generous 401(k) and profit sharing program. Parking in downtown location provided. Generous sick, vacation and holiday schedule provided.

The annual salary will be commensurate with experience and credentials but begins at $65,000.

The above information in this description has been designed to indicate the general nature and level of work performed by employees within this classification. It is not designed to contain or be interpreted as a comprehensive inventory of all duties, responsibilities and qualifications required of employees in this job.

Interested candidates should submit resume and cover letter to HR Manager, Lesley Hall at [email protected]. No phone calls, please.

CGA Member To Compete at World Reebok CrossFit Games

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Reprinted from Lodi News-Sentinel

Lodi Athlete Chris Podesto Will Take on the World at Reebok CrossFit Games

There are times when Chris Podesto doesn’t know how to quit.

The 50-year-old spends his lunch hour doing cardio work at In Shape City, then does intense workouts for another hour and a half after work at Lodi CrossFit Gym six days a week.

“I’m supposed to take one day off. Sometimes I go for a 10-mile run on that day. I’m not supposed to,” Podesto said. “I struggle with that. It’s not recommended for the sport. The body needs recovery. There are active recoveries — I swim and I jog slow.”

That relentless training has its rewards. Podesto is one of 20 men worldwide who have qualified for the Reebok CrossFit Games in the 50-54 division. The competition takes place from July 21 to 26 at StubHub Center in Carson, Calif., and Podesto is ranked 16th out of those 20.

Last August, Podesto made a conscious decision to shoot for the CrossFit Games, and began increasing the intensity of his workouts. He had a setback in December when he separated his right biceps training in the event he considers his nemesis — the ring muscle-ups, where an athlete jumps and grabs the rings, then swings the body up using the arms.
It’s the only major injury he’s had during CrossFit.

CGA Board Member Chris Podesto
CGA Board Member Chris Podesto

“Here’s the tradeoff: I’m 50 years old, and I can do things I couldn’t do at 25,” he said. “Can you get hurt? Yeah, that possibility exists. You can get hurt walking across the street. But the benefits, it’s amazing.”

Podesto hasn’t always been this focused on fitness. He was a fullback for Tokay High, graduating in 1983, then went on to play fullback for the University of Pacific’s football team. His football career led to three knee repair surgeries.
After his playing career, he stayed more or less in shape.

“I had some chubby phases. I was bored at the gym,” he said. “I heard about CrossFit five years ago and I started doing it, and wasn’t really willing to refine my skills to get to the games. Athletically, I was always there but never got over the hurdle.

“I’m really excited. I never thought it was a big deal, but it’s gotten to be a big deal.”
Podesto works with a trainer from Canada, Mike Fitzgerald, who runs a gym and helps Podesto build his training program.

“He builds programs around people’s weaknesses,” Podesto said. “I wouldn’t have made it here without him, because I was always trying to freelance and do it on my own, but I realized that the guys at the top have specific training regimens with people that know more about the physiology of the body than I do.”

Podesto’s workout on Tuesday involved power cleans, front squats, ring muscle-ups, 10 rope climbs, wall walks, squat cleans, wall balls and box jumps.

Because the CrossFit Games entail a much more strenuous aerobic program than the regionals, Fitzgerald has Podesto losing a little weight to better approach the competition. He’s hovering around 200 pounds at the moment, about seven pounds lighter than usual.

Podesto said his career as an executive marketing director for Food4Less gives him the opportunity to maintain his eating habits.

“I’m eating much healthier than I ever have,” he said. “Mostly paleo — meat and produce, then I have oatmeal and rice with the meat and vegetable, limited fruit. It’s really changed.”

The CrossFit Games Masters event (ages 40 and older) includes competition in eight events, starting with four on July 22: the deadlift ladder, the max distance handstand, the sled sprint and the run rope, which involves a 400-meter run and two rope climbs.

Competition on July 23 starts with the 2007, which includes a 1,000-meter row, then five rounds of 20 pull-ups and seven push jerks. The day concludes with the medball burpee, which includes medicine-ball cleans over the shoulder and burpees.

The final day starts with the Down and Back Chipper, which combines seven activities into one event. The competition concludes with the Masters Final consisting of a 100-meter run, four muscle-ups and five snatches of 125 pounds.
The overall competition is scored based on how athletes place in each event.

Andronico’s Names New CEO

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SAN LEANDRO, Calif., June 2, 2015 (GLOBE NEWSWIRE) — Local grocery store chain and California Grocers Association member Andronico’s Community Markets (ACM), based in the East Bay with five stores throughout the Bay Area, has named one of the grocery industry’s leading innovators as CEO to head up the historic brand.

news_monford
Suzy Monford

Suzy Monford, CEO and Founder of Food Sport International, is recognized for her ability to innovate across key global growth markets including grocery, lifestyle retailing and health/fitness. She has been recruited internationally by leading corporations in Australia, United Kingdom, Canada, and the U.S.

Monford most recently held the role of Head of Innovation for Woolworth’s, the largest retailer in Asia Pacific, where she was recruited to lead strategic change and international joint ventures. Previously she founded Food Sport International, working with Coles Supermarkets in Australia as her primary client. Other clients include Cheers Inc., a restaurant corporation in Texas, where she worked as CEO/president. A certified health coach, Monford has served on the executive board of directors for both the San Antonio Mayor’s Fitness Council and the YMCA, and actively teaches fitness and health in her community.

“At Andronico’s, one of our core merchant principles is to build healthy communities while we build our business. We believe that you can do well, by doing good. To that end, I’ll be introducing a new innovative approach to health and wellness that is a major departure from the role that the supermarket industry has traditionally played. Fitness—in all aspects from kitchen to shopping to cooking to dining—will be the way ACM delivers on its promise to advocate for community and our own corporate health. We’ll pioneer recipes for fit living for our shoppers and teammates.”

Monford takes on the role at ACM as the company looks to continue its resurgence as an innovator in the San Francisco Bay Area specialty food retail.

“I’m honored to have the opportunity to continue the Andronico’s legacy,” said Monford. “We were born in Berkeley in 1929, and today we remain an original American market whose success has been built on dedication to quality, uniqueness, service and neighborhood. We were “local” before it was a thing. We were focused on small producers before artisanal became a tag line to rationalize high retails.”

Monford’s plans include innovating store formats with eventual store expansion and embracing and utilizing the latest technology available in the grocery industry to drive value, convenience and to energize the shopping experience.

“We may be a small company, but we’ll be brilliant with data and digital,” Monford added. “We’re going to marry traditional brick and mortar mercantile, with best of class tech in order to create a relevant shop for today.”

Monford plans to develop new products and concepts throughout the Andronico’s stores that will redefine value and serve each store’s diverse community. Chief among her priorities include an emphasis on speed and convenience, including bringing on new delivery App Instacart throughout the chain by mid-summer, and developing a new fitness and health-centric shopping portal for customers and teammates.

Andronico’s Community Markets, a privately owned grocery retailer offering a full range of specialty, organic and conventional groceries, began in Berkeley in 1929 and today has stores in Berkeley, San Francisco, San Anselmo and Los Altos.

CA WIC Announces New Vendor Agreements – Short Timeline for Document Return

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On June 2, 2015, the California Department of Public Health/Women, Infants and Children Division (CA WIC) announced that authorized vendors will begin receiving new Vendor Agreements that must be signed and returned to CA WIC, generally within 15 days. Failure to respond will result in termination of vendor authorization.

WIC-LogoThe new agreements are intended to incorporate changes implemented in October of 2013 and June of 2014 relating to vendor authorization criteria, peer group criteria, and reimbursement rates. Vendor Alert 2015-05, available HERE and on the CA WIC web site, outlines specific areas of the Vendor Agreement that contain the new information and specific deadlines for current vendors with agreement expiration dates prior to and after August 1, 2015.

Should you have any questions, please contact CA WIC directly at 1-855-WIC STOR (1-855-942-7867) or via e-mail at [email protected].

Opinion: An illusion of action in California’s Capitol

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Reprinted from The Sacramento Bee

Anyone who wandered into the state Capitol this week might conclude that important business was being done.

The floors of both legislative houses are going full blast, working through more than 500 bills – the core of this year’s legislative agenda.

Meanwhile, a two-house conference committee is chewing through two versions of the 2015-16 state budget, supposedly reconciling their differences.

Lobbyists crowd the hallways, trying to have their way with legislators. And outside the Capitol, demonstrations and rallies are being staged by various interest groups, hoping to influence what’s happening inside.

What’s happening this week, however, is by no means definitive of anything. It’s all very preliminary, merely setting the stage for the real decision-making that will come later.

The floors are going due to a legislative rule that all bills must clear their “house of origin” by Friday and be sent to the other house.

Almost none of them are being rejected for the simple reason that the appropriations committees of both houses, acting on behalf of legislative leaders, pre-decided – in secrecy – which would reach the floors.

The real decisions on which bills will reach Gov. Jerry Brown’s desk won’t be made until August or even September.

They must clear the committees of the second house, the floor of the second house and then, almost always, a final vote in the house of origin before being sent to the governor.

Casting votes for or against measures now is easy because, in effect, those votes don’t count. And if history is any guide, quite a few of the bills being approved this week with flowery speeches and self-congratulatory press releases will never make it back, or be amended to something quite different.

The 500-plus bills going through the mill this week are, in the main, a very liberal agenda, spending many millions or even billions of dollars on new social, medical and educational benefits, plus imposing new costs on businesses, such as the minimum wage hike approved by the Senate on Monday.

Brown, however, has publicly warned against massive new spending and has looked askance at bills considered to be “job killers” by business groups, so when he finally passes the word on what he’ll accept, the agenda will likely shrink.

Indeed, about a third of the bills given that epithet by the California Chamber of Commerce have already fallen by the wayside.

The same dynamic is evident in the budget, which must, by law, be enacted by June 15, lest legislators lose their salaries.

Democrats want billions of dollars in spending, mostly for the poor, beyond what Brown has proposed and closed-door negotiations will eventually produce the budget he wants, or at least deems acceptable.

In brief, what’s happening this week in and around the Capitol is just a practice game – spring training, as it were, for the real games ahead.

Dan Walters: (916) 321-1195, [email protected], @WaltersBee
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CGA Hosts Compliance Seminars

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The California Grocers Association released the first in a series of Grocery Compliance Toolkits at two regional seminars on May 12, 13.

The first toolkit addresses the complexities of hazardous waste disposal. CGA has contracted with Environmental Resources Management (ERM), the world’s leading sustainability consultancy, and the Sacramento-based law firm of Downey Brand LLP, to create this comprehensive, user-friendly toolkit for hazardous waste disposal.

More than 80 grocery retailers from throughout California participated in the two seminars. Representatives from ERM and Downey Brand provided an overview of California’s comprehensive hazardous waste disposal regulations and explained how to utilize the toolkit.

CGA will host a one-hour hazardous waste disposal toolkit webinar on Wednesday, June 10, 2015, from 10:00 – 11:00 am for CGA members unable to attend the seminar. Webinar attendees will be provided an electronic version of the toolkit.

The webinar is open to CGA members only.

CGA Execs Receive Prestigious Industry Award

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CGA President and CEO Ronald Fong, and Keri Askew Bailey, CGA senior vice president, Government Relations and Public Policy, were awarded the Food Marketing Institute’s Donald H. MacManus Award, the highest recognition for a state affairs executive,during FMI’s annual lobby day in Washington, DC, for their public affairs excellence. This is the first time two individuals from the same association have been honored in the same year.

CGA President/CEO Ron Fong and Keri Askew Bailey, senior vice president of Government Relations and Public Policy receive Donald MacManus Award.
CGA President/CEO Ron Fong and Keri Askew Bailey, senior vice president of Government Relations and Public Policy receive Donald MacManus Award.

“There is no one more worthy of this prestigious award than Ron Fong,” said CGA Chairman of the Board Joe Falvey, Unified Grocers, Inc. “His leadership and vision has brought CGA to the forefront of grocery associations. Keri Askew Bailey is also to be commended for leading CGA’s government relations team and implementing the association’s advocacy program. CGA congratulates both on a well-deserved award.”

Fong is a political strategist and his legislative alliances with state and national trade associations helped in defeating statewide legislation on GMO-labeling requirements and assisted in the passage of the first statewide bag usage law in 2014. He also led the association in its merger with the California Independent Grocers Association (CIGA), which united 179 independent grocers and suppliers with CGA’s existing membership. In his role as CEO, Fong oversees the association’s strategic direction and staff, which manages departments in government relations, communications, member services and business conferences.

“Ron Fong and Keri Askew Bailey exemplify the power of grassroots through their tireless efforts advocating on behalf of California retailers grocers on a multitude of state issues,” said FMI President Leslie Sarasin, “especially those issues related to the defeat of Proposition 37; fighting local sugarysugar-sweetened beverages drink warning labels and taxes; and passing a state-wide plastic bag bill with local preemption.”

Askew Bailey has worked on significant policy issues including Proposition 65; the Green Chemistry Initiative; attempts to curb deployment of assisted self-checkout technology in the state; and proposed state and local GMO- and sugar-sweetened beverage labeling. She has also worked to increase CGA’s visibility at the state Capitol and in local City Council and Board of Supervisors chambers across the stateand local government levels.

Left to right Richie Morgan, Shanna Morgan, North State Grocery; Jonathan Mayes, Albertsons/Safeway; Ron Fong, CGA; Bob Gutierrez, Food 4 Less (Stockton); Dennis Darling, Foods Etc.; Kevin Davis, Bristol Farms; Joe Falvey, Unified Grocers, Inc; and Mike Amiri, Nutricion Fundamental, Inc.
Left to right
Richie Morgan, Shanna Morgan, North State Grocery; Jonathan Mayes, Albertsons/Safeway; Ron Fong, CGA; Bob Gutierrez, Food 4 Less (Stockton); Dennis Darling, Foods Etc.; Kevin Davis, Bristol Farms; Joe Falvey, Unified Grocers, Inc; and Mike Amiri, Nutricion Fundamental, Inc.

“Keri & Ron work tirelessly to advocate for California’s food retailers, suppliers and employees at the state, federal and local levels,” said CGA Government Relations Committee Chair Mary Kasper, Fresh & Easy. “CGA is deeply appreciative of their extraordinary vision and leadership.”

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