Does UFW Cause Farm Closures?

ALRB member Isadore Hall III

Does UFW Cause Farm Closures?

September 5, 2018

Legal Explanation of Anecdotal Farm Closure Reports

By Laurie Greene, Founding Editor

Scores of farms in California have gone out of businesses over the last four decades, and many suspect that UFW pressure was to blame for farm closures. But there is no definitive reported evidence that this has happened.

“There are no specific facts that you can cite or any empirical evidence you will find that growers who closed down their businesses did so because of the UFW,” responded Robert Roy, president/general counsel for the Camarillo-based Ventura County Agricultural Association, when asked about such verbal reports.

Roy explained that it is not illegal for a business to claim it shut down, such as a farm closure, due to a union, according to a recent Supreme Court of the United States decision.

“But people just don't talk about that in general,” he clarified.

“Generally, if someone's been under a UFW or other union contract for a number of years, you see the cost of that contract makes them very noncompetitive with other non-union employers, both in-state and in other states,” Roy said. “In the past, UFW contracts had considerably more costly items in their employment packages, usually starting with higher wages, plus [non-wage] costs such as paid vacation, paid holidays, a union pension plan, and a union medical plan. So cumulatively, as the years go by, these costs are a pretty heavy hit for a lot of these employers.”

“Such costs are probably the only thing you can look to determine whether a farm went out of business because of the union,” he explained. “Of course, this is anecdotal evidence because you are not going to find people out there who will tell you directly they went out of work specifically to avoid the union."

food safetyRoy said the public would not encounter those types of situations in which a business owner will assert the UFW caused their farm closure.

“I would think if a business had to stop operating," Roy said, "maybe the owner of the business might put out a statement that explains what caused the farm closure. But we did not see that either.”

“When I first came here to Ventura County as a young attorney back in 1977,” Roy recalled, “there were somewhere between 30 to 40 UFW contracts in this area. Now there is only one—Muranaka Farms,” the largest U.S. grower and shipper of bunched green onions, according to their website. I think they have a very small workforce of perhaps 50 people here in Moorpark, California. I believe the rest of their operation is in Mexico, but I do not know if that operation is covered under the UFW contract.”

Roy continued, “Then last year, you had the closure of all of the strawberry operations for Dole Food Co. They shut down all of their strawberry operations in Ventura, Santa Maria and Watsonville. At one time, they had a very large UFW contract with over 1500 workers since the mid-1990s.”

“It is a tough deal for a union to convince workers to pay three percent of their wages in dues,” Roy said, “for many of the benefits that farmers now provide. I think farmers have basically caught up with many of the provisions covered in these UFW contracts. So, selling the union to the workers is a much more difficult proposition, especially when they have to pay three percent of their wages.”



Ventura County Agricultural Association is a business trade association that concentrates on providing services to agricultural employers, packing sheds, and labor contractors in Ventura and Santa Barbara Counties since 1970. The organization's services include training, dealing with union matters such as grievances and arbitrations,  representing members in administrative and court proceedings, and creating handbooks and policies. The Association keeps its members up-to-date on any federal, state or local laws that affect their operations.


Resources

Guild, Todd. (Updated 2017, July). Dole Berry Co. to close doors," Register Pajaronian.

Mohan, Geoffrey, (2017, Sept. 3). Pulling back from strawberry market, Dole Food Co. to lay off 402 workers in Northern California," Los Angeles Times.

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