Florida Tomato Labor Disputes Rage on (03-12-2008)

FLORIDA TOMATO LABOR DISPUTES RAGE ON

By Michael C. Saqui and Anthony P. Raimondo

Florida is America’s No. 1 tomato producer, growing almost half of all tomatoes consumed in the United States year-round, and 90% of the winter tomatoes. The industry is a critically important sector of Florida agriculture, and is second only to tourism in importance to the state’s economy. In recent years, Florida growers have faced a number of natural challenges from hurricanes and invasive pests, and business challenges due to increased foreign competition. But one of the biggest threats to the industry is home-made: a labor dispute with a farm worker labor union.

The Coalition of Immokalee Workers (CIW), a farm worker union, has picketed fast food restaurants and has sought publicity through complaints about low pay and poor working conditions for Florida tomato harvesters. The first victim was Taco Bell, who caved into the pressure and agreed to force its growers to agree to the CIW’s demands. Next, McDonalds gave into pressure from a CIW boycott to pay more money to Florida tomato pickers. McDonalds agreed to pay an additional penny per pound of tomatoes to the workers. The increase is to be paid directly to workers harvesting tomatoes purchased by McDonalds. In addition, the CIW and McDonalds have agreed to implement a new code of conduct for Florida tomato growers, and farm workers will participate in investigating worker complaints and resolving disputes. CIW and McDonalds also agreed to implement a “credible” third party verification system to ensure that wages are properly paid. CIW representatives said that they wanted the system to be expand to one day include the entire Florida tomato industry.

The next target was Burger King, which resisted pressure from the CIW to sign on to the “penny per pound” deals. Meanwhile, Senator Ted Kennedy, with support from Senators Richard Durbin, Sherrod Brown, and Bernie Sanders, have urged Burger King and the tomato industry as a whole to sign the deals with the CIW. In December 2007, Burger King announced that it was exploring options to obtain tomatoes from regions other than Florida. Burger King has denied that the move is in response to the CIW’s demands, and has stated that it needs to have contingency plans in place in the event of extreme weather or other factors that can affect supply.

The Florida Tomato Growers Exchange (FGTE) has raised serious legal concerns that participation in any arrangement involving fast-food restaurants, their corporate suppliers, a 501c (3) charitable organization and others may violate antitrust, labor and racketeering laws. As a result, FTGE members have chosen not to participate in any pact in which third parties set wages for their employees. “Our members have reaffirmed to us that they will not participate in the much-publicized deals that involve our industry’s workers due to legal concerns,” said Reggie Brown, executive vice president of FGTE. “Our industry will continue its strong commitment to develop and implement more impactful, comprehensive solutions that improve the lives of all farm workers and their families,” Brown said. Senator Kennedy, along with fellow Democrats Dick Durbin of Illinois and Sherrod Brown of Ohio and Vermont Independent Bernie Sanders, have said there is no basis for the FGTE’ legal concerns.

Nonetheless, the so-called “penny-per-pound” deals involving Yum! Brands (parent to Taco Bell and Pizza Hut) and McDonald’s will not be executed and are now considered moot. Growers who sold tomatoes to Yum! Brands under the penny-per-pound deal last season will not participate in the penny-per-pound arrangement this year. The McDonald’s penny-per pound deal never went into effect. Senator Kennedy has expressed an intention to initiate an investigation into working conditions in the Florida tomato industry, and the next step may be government intervention.

The FGTE has fought back with its own publicity campaign to educate the public about the industry’s efforts to provide fair wages and reasonable working conditions for tomato harvesters:

· Competitive wages. FGTE publicizes that its members pay their employees competitive wages in order to have workers each season to plant and harvest their crops. According to FGTE, tomato harvesters have the potential to earn more than double the minimum wage. Harvesters’ average hourly wages are determined by the minimum wage plus a per-bucket rate, both of which have increased over the years. According to payroll records required by the government from the 2006-2007 season, Florida tomato harvesters’ rates ranged from $10.50 to $14.86, with an average wage of $12.46 per hour.

· Worker housing. More than 60% of Florida tomato growers provide their employees with free or inexpensive government-inspected housing. Many pay for utilities including gas, electric, water and garbage – even when harvesters are not picking tomatoes. The association promotes that it continues to explore housing solutions for workers. FGTE explains that the substandard housing publicized by CIW is not housing provided by its members.

· Third-party audits. Florida’s tomato growers have the opportunity to be certified by the Socially Accountable Farm Employers program, which SAFE provides a transparent and credible source of independent, third-party certification of labor practices for farm employers. SAFE audits help to ensure a work environment free of hazard, intimidation, violence and harassment. FGTE explains that this program makes the “code of conduct” agreements unnecessary.

· Supporting the farm worker community. FTGEmembers make significant contributions – many thousands of dollars every year – to organizations that make a difference in their employees’ lives, including scholarship programs for children of farm workers, and education and family services to benefit the entire farm worker community, and the association works to promote the positive contributions made to worker communities.

COUNSEL TO MANAGEMENT:

Consumer boycotts are an effective union weapon, and the CIW’s success in Florida will undoubtedly encourage other unions to use a similar strategy. Employers must have public relations and brand protection strategies in place in order to be prepared to aggressively counter boycott tactics. Targeted employers should consider implementing advance strategies to counteract union efforts to cast them in a negative light and slander their labels or brands. Labor counsel with a background in union avoidance campaigns, as well as public relations experts can formulate plans to promote a company and its positive practice. Employers should also work with their industry associations to take proactive steps to ensure that association members implement the best practices in the relevant industry.