LA Law Would Require New Owners to Keep Workers On
By George Anderson
A controversial new law tentatively approved by the Los Angeles City Council yesterday would require a company acquiring a supermarket to retain workers who have been on the job for at least six months for a period of 90 days.
Councilman Alex Padilla, who introduced the ordinance, told the LA Daily News, “What this ordinance is really about is the health and safety of the residents of Los Angeles. These workers ensure that our food is safe and sanitary.”
The municipal ordinance could have unintended negative consequences for Los Angeles, said Peter Larkin, president of the California Grocers Association. “If this ordinance were to go in effect, much of the capital that would be available for investment in supermarkets in the city might indeed flow elsewhere due to the lack of this type of ordinance in other municipalities,” he said.
Councilman Bernard Parks, one of two on the Council who voted against the ordinance, shares Mr. Larkin’s concerns and also believes it may inadvertently hurt smaller businesses looking to expand through acquisition.
“I think there are some land mines in the ordinance,” he said.
Moderator’s Comment: Will the proposed Los Angeles law requiring new owners (short of cause) from replacing workers of acquired supermarkets have a positive
or negative effect on the grocery business within the city’s limits? If it survives legal challenge, will we see similar measures passed in other municipalities across the U.S.?
George Anderson – Moderator