Dive Brief:
- A new law requiring supermarkets to retain employees after a change in ownership has been signed by California Gov. Jerry Brown — ostensibly the first statewide worker retention law covering private-sector employees in the U.S.
- It protects employees at stores of at least 15,000 square feet from being fired during a 90-day transition period after the store has been sold;
- The law, which covers around 384,000 supermarket employees, means the acquiring employer must provide a written performance evaluation and, if the evaluation is satisfactory, must consider an offer of continued employment, while retaining the right to terminate an employee for cause at any time during or after the transition period.
Dive Insight:
Depending on which side of the fence you are standing, the new law received differing receptions.
Mickey Kasparian, president of United Food and Commercial Workers Union Local 135 in San Diego, said “The grocery industry is changing at a fast and furious pace, and that can create a lot of uncertainty for the employees that have made these stores so profitable. It’s important that workers have a fair chance to keep their jobs.”
The California Grocers Association called the legislation “illogical, ambiguous [and] unnecessary," saying in a statement it was “extremely disappointed” Gov. Brown chose to sign “this poorly drafted measure. The CGA added that "given all its shortcomings, [the law] actually creates a greater likelihood companies will be forced to shutter locations that are no longer viable rather than identify a successor to operate in the location. Jobs will be lost, communities will see grocery access reduced and, in some cases, food deserts will be created.”
As is usually the case, the truth probably will fall somewhere in-between. But HR leaders for grocery retailers will have their hands full if their company acquires any new stores.
