The California Grocers Association (CGA) reports that the Second District Court of Appeal has upheld a trial court ruling that the City of Los Angeles Grocery Worker Retention Ordinance is unconstitutional.
The ordinance, which was fought by CGA, is described as “the first attempt in the nation to require a certain class of supermarket retailers to retain workers when a store changed ownership.
CGA president/CEO Ronald Fong said he was pleased and satisfied with the ruling. “We were confident our arguments against the ordinance were sound and the majority of the court agreed,” Fong said.
The ordinance, which was fought by CGA, is described as “the first attempt in the nation to require a certain class of supermarket retailers to retain workers when a store changed ownership.
CGA president/CEO Ronald Fong said he was pleased and satisfied with the ruling. “We were confident our arguments against the ordinance were sound and the majority of the court agreed,” Fong said.
- KC's View:
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I’m not a lawyer, but this seemed like an absurd rule, forcing a company to keep employees when acquiring a supermarket chain…even if part of the reason the company was being sold was that labor costs got out of control. It would be like forcing a company to be obsolete and non-competitive and to ignore market realities.
Sounds like the courts got this one right.
