City bill on supermarket employee retention sparks debate

Between bickering about who qualifies as a small business owner and the merits of training versus talent, a New York City Council hearing on a bill that would require incoming supermarket owners to retain employees for three months quickly grew contentious.

Council members said they have seen owners attempt to dismiss the entire workforce of stores without taking the time to assess individuals’ abilities. They also spoke of how owners intimidate workers involved in union organizing.

Supermarket industry representatives contended the measure would buoy unions at the expense of sound economic development, and if its logic were extended, several industries could fall under similar retention regulations.

Queens Councilman I. Daneek Miller introduced the bill in question this January. His Grocery Worker Retention Act would compel new owners or of supermarkets 10,000 square-feet or larger to keep full-time and part-time employees who have worked at the store for at least six months on the payroll for at least 90 days. If the new owner must downsize, the measure would mandate that staff are retained according to seniority. A memo attached to the bill notes that having experienced grocery workers with knowledge of the health regulations and of the local community is in the best interest of citizens’ health and wellbeing.

“This A&P situation certainly wasn’t on our radar when this legislation was being drafted,” Miller said. “But now that it is, we want to be able to mitigate that in whatever way we can, so that we can bring some relief to obviously the workers and make sure that the employers have the opportunity to have the most experienced workforce providing services to these communities.”

The A&P situation the Councilman refers to is the recent string of closures by the company because of bankruptcy. The bill, however, is not expected to come before the full Council before the next round of A&P stores hits the auction block in early October. It currently has 20 sponsors.

Alma Torres, who has worked at the Food Emporium, an A&P owned shop, in Hell’s Kitchen for 17 years, said the bill would provide some stability to her and others at stores that are part of A&P’s portfolio and expected to change hands. Torres said she made generous concessions when A&P filed for bankruptcy five years ago. Her union, Retail, Wholesale, Department Store Union Local 338, said the organized workforce collectively made $600 million in concessions.

“ We gave a lot back – we gave personal time, sick days, vacation times … We had no wage increase for five years, and now, all of a sudden to be thrown into the air after you make so much sacrifices for a company,” Torres said. “We feel like we are stuck in limbo.” 

Local 338 and United Food and Commercial Workers International Union Local 1500 came out to support the measure. Both unions are involved in negotiations with companies buying A&P stores. Nikki Kateman, deputy director of politics, communications and special projects at Local 338, said, 94 stores in the East Coast are slated to be purchased by Stop & Shop and Acme, which have tentative agreements with the unions. Thirty-eight New York City shops have not yet been sold. Key Food, however, plans to bid on them, and has been negotiating with the unions. 

Haile Rivera, executive director of the National Supermarket Association that represents grocery store owners, said the bill seemed one-sided and operated under the false assumption that most owners do not care about their workers. Rivera said, ultimately, it would cut into proprietors’ ability to assemble the best teams possible while trying to turn around a store. One owner agreed that 90 days was “an eternity” when it came to making a first impression with customers.

“Being progressive in New York City is very popular these days, and drafting bills like this one would help to close down some stores, and take away jobs. How progressive is that?” Rivera said. “Our members are immigrants and many started as cashiers, stock employees; one who sits on our Board of Directors started … cleaning the supermarket”

John Durante, vice president of business development at Key Food Stores Co-operative, suggested the bill would hinder individual owners’ and employees’ right to choose whether to join a union, which he called “misguided.” And Jay Peltz, general counsel and vice president of government relations for the Food Industry Alliance of New York State, said using the logic that guided the bill, several sectors should be required to retain employees when businesses change hands, such as restaurants, cafes, food concessions, health care facilities, exterminators, Con Edison and HVAC companies. Indeed, some city lawmakers have expressed interest in studying retention policies in other industries, a Council source said. 

The Council members exchanges with grocery executives devolved into back-and-forths. Council members and a man who said he was a second-generation American who owned three supermarkets debated whether he would qualify as a small business owner.

And at one point, City Councilman Ben Kallos asked Peltz if he would swear under oath that there was no evidence incumbent supermarket workers are better at maintaining health and safety standards than their replacements. The two debated the value of training and talent. Peltz contended the government was trying to force entrepreneurs to take on the risk of unknown employees during a 90-day trial period. 

“Any time your folks fire people, it’s us at the table and the city and state of New York that has to pay unemployment. So government maintains risk,” Kallos said.

“No,” Peltz responded. “It’s the taxpayers that pay for it.