retail news in context, analysis with attitude

Attorneys with Pacific Legal Foundation have petitioned the U.S. Supreme Court on behalf of the California Grocers Association to review a City of Los Angeles ordinance that denies new grocery store owners the right to hire their own employees, unless they agree to maintain a unionized workforce.

According to CGA, “The petition asks the Court to review the city’s Grocery Worker Retention Ordinance, which requires companies that purchase grocery stores of 15,000-square feet or larger to hire employees only from existing staff and retain them for at least 90 days. This restriction does not apply if the new owner consents to a collective bargaining agreement with a union.” CGA described the law as “a major step backwards in a national effort to bring affordable and healthy food to some of the most underserved areas in Los Angeles.”

“While we’re extremely disappointed with the California Supreme Court’s decision, we are encouraged that the Pacific Legal Foundation finds merit in petitioning the highest court in the land,” said Ron Fong, CGA President and CEO. “The challenge is important enough to grocers that CGA believes it needs to exhaust every legal remedy.”
KC's View:
I suspect that the Supremes will rule in favor of CGA in this case (though I have absolutely no legal basis for that opinion). But it is hard to imagine why a new owner of a business has to adhere to labor agreements made by an old business that may have actually put the old entity out of business.