6/14/99 -- Los Angeles Times
Grower Is at Root of New Era in Labor Relations
Coastal Berry finds itself on vanguard of change in an industry notorious for poor working conditions. Competitors decry union-friendly approach.
By FRED ALVAREZ
Times Staff Writer
OXNARD
Sure, the firm he works for, Watsonville-based Coastal Berry Co., is
at the center of a historic United Farm Workers campaign to organize
berry pickers, a crucial first step in a larger drive to unionize the
state's 20,000 strawberry workers.
And it's true that Coastal Berry has made unprecedented concessions to
the UFW--including a pledge to remain neutral during the organizing
drive--that have angered many within the industry and raised questions
about the company's relationship with the union.
But for Murray, who at age 27 is in charge of Coastal's Oxnard
operation, the focus remains on getting the fruit to market.
"It's not really important to us how it all comes out," said Murray,
who like other company managers has stayed out of the union fray that has
gripped the nation's largest strawberry grower for the past three years.
"What's most important is that we take care of business," he said.
"And the business at hand is growing strawberries, putting them in a box
and selling them to customers."
In an industry historically hostile to organized labor and notorious
for its low pay and stoop labor, Coastal Berry is at the forefront of
change, whether it wants to be or not.
The company's wages are the highest of any strawberry grower in the
state, according to the California Institute for Rural Studies in Davis.
Weekly wages average about $400 at Coastal Berry, compared with $240
elsewhere throughout California. Coastal Berry also provides company-paid
medical and dental benefits and a small life insurance plan.
Several times a year, the company raffles off big-screen televisions,
VCRs and a couple of pickup trucks to the 2,000 pickers and packers who
work at peak season in Oxnard, Watsonville and Salinas.
"This is a good company; they treat the workers well," said Oxnard
resident Felipe Carranza, a 31-year-old strawberry picker who is in his
first year with the company. "They have respect for their employees."
In addition to its neutral stance during the organizing drive, the
company allowed organizers unfettered access to workers during the early
days of the campaign.
Earlier this month, Coastal officials took the extraordinary step of
pulling foremen out of the fields during a two-day representation
election--between the UFW and the rival Coastal Berry of California
Farmworkers Committee. That move was meant to eliminate any hint of
intimidation by the company or its personnel. The election is still
unresolved, due to disputed ballots.
At the heart of the company's actions, Coastal Berry President Ernie
Farley said, is a belief that workers should be treated with respect and
paid a fair wage for such hard labor. And, when it comes to union
representation, he said the company has repeatedly told workers they are
free to make up their own minds.
"Our philosophy has been that the most important person at the company
is the person who picks the strawberry," said Farley, noting that 85% of
employees return to the company each season. "We're all a bunch of
produce guys, not labor relations experts. But I believe we have a
history of taking care of our workers, and I think we've done a good job
creating an atmosphere where they know they can make their own
decisions."
Despite its progressive philosophy, Coastal Berry has taken plenty of
fire from all sides.
Although UFW officials acknowledge that the company is considered a
good employer by some measures, many workers still have expressed
concerns.
"Some had problems with lack of pay, lack of benefits, lack of job
security," union spokesman Marc Grossman said. "Others just wanted a
voice on the job. [Coastal Berry] may have been a little bit better than
some of the other companies, but I can guarantee there was still a need
for the union."
The company also lost support within the industry. Growers have
criticized Coastal Berry for breaking ranks and adopting what is
generally perceived to be a pro-union stance.
Some landowners refused to lease property to Coastal, wanting nothing
to do with the UFW's organizing campaign.
And last year, the Western Growers Assn., a large and powerful
confederation of farm owners in the Western states, took the unusual step
of filing suit against the company and the UFW. The lawsuit, the first
ever against one of its own members, alleged that Coastal Berry colluded
with the union to allow it to control the company.
The suit, filed in Santa Cruz County, was dismissed, but deep
resentment lingers among some in the industry.
"I think the industry is repulsed by Coastal Berry; they are just
disgusted and repulsed," said Salinas attorney Jim Gumberg, who
represents the UFW's rival, the Coastal Berry committee, which is not
affiliated with the company. "And quite frankly, I think there was a
backlash [to the company's actions], and that's a good part of the reason
we are at the place we are today."
The company started as Garguilo Inc., with about 300 workers farming
about 200 acres in Watsonville. The operation expanded over the years to
its current 1,600 acres in Monterey, Santa Cruz and Ventura counties.
Much of the company's recent growth has been centered in the Oxnard
area. Coastal has had a local shipping operation for about seven years
but started growing berries locally only three years ago.
Last year, the company purchased the 460-acre McGrath Ranch--a former
dairy farm near Gonzales Road and Harbor Boulevard--and expanded its
operation from 110 to 330 acres. At the same time, the Oxnard work force
jumped from 250 employees at peak season last year to 725 workers this
year.
As the company grew, it also captured the attention of a reinvigorated
UFW. Looking to rebuild its clout in the farm industry as a whole after
more than a decade of declining membership and dwindling influence, the
union in 1995 zeroed in on the strawberry industry--specifically workers
at Garguilo, the nation's largest direct employer of berry harvesters.
By that time, the company was owned by St. Louis-based Monsanto Co.,
which quickly became the target of a nationwide UFW campaign. Union
officials even showed up at a Monsanto shareholders meeting to urge them
to do the right thing for strawberry workers.
After months of high-profile attacks, Monsanto brokered a deal with
the UFW in mid-1997, promising that neither the company nor its
successors would oppose the union's organizingefforts.
Monsanto didn't stop there. Weeks later, it agreed to sell the berry
company to a pair of union-friendly investors, who changed the name to
Coastal Berry and made it clear that they would not stand in the UFW's
way. In fact, owner and Chairman David Gladstone sent letters to
employees last year saying he supported unionization.
"I believe that we can strengthen [our] special relationship if the
workers are represented by a labor union," wrote Gladstone, who is vice
chairman of a buyout and specialty finance firm in Bethesda, Md. "Of
course, only you can make that decision."
Gladstone could not be reached for comment. But his active support for
the union, a rare thing in agriculture, immediately drew fire from the
industry, leading to the Western Growers filing suit last June.
"The whole Coastal thing is so unprecedented," O'Connor said. "There's
no question they are a good employer and very well-respected in the
industry. That's why I think the [union's] message of 'we will make
things better for you' didn't resonate very well with workers."
Indeed, despite the backing of company owners, the UFW in recent weeks
has twice failed to win an election to represent berry pickers at
Coastal.
In the most recent election, a runoff forced when neither the UFW nor
the rival farm worker committee could gain the margin needed for victory,
the committee out-polled the union by 90 votes. However, 92 more
ballots--enough to potentially change the outcome of the election--are in
dispute. The committee needs just three of those votes to win.
State labor officials this week are expected to rule on the challenged
ballots, though attorneys for both sides predict a volley of objections
from the losing camp, which could delay the outcome for weeks or even
months.
UFW officials said they will continue their campaign in the strawberry
fields, regardless of the result. But they are also quick to add that it
would be wrong to believe that the union had an organizing advantage at
Coastal Berry.
The UFW's Grossman said promises of neutrality from top management
never trickled down to mid-level foremen and supervisors.
Many of those managers aggressively lobbied against the union and on
behalf of the committee, a group of loosely organized field laborers who
banded together to offer an alternative to the UFW, he said.
"There was a huge gap between the owner's professed neutrality and the
day-to-day reality in the fields," Grossman said. "Out in the fields,
there was a virulent anti-union campaign we had to contend with."
But Ventura County labor lawyer Rob Roy argues there is no merit to
that claim. Even though he opposed Gladstone's pro-union stance, he said
the company itself, with its good wages and benefits, was the very thing
that beat back the UFW's organizing drive.
"This was a highly unusual circumstance in that the organization of
the company started in the board room of Monsanto, not out in the fields
with the workers," said Roy, president of the pro-grower Ventura County
Agricultural Assn.
"Not only did they pick the wrong employer, they picked the wrong
unionizing strategy," he said of the UFW. "They overlooked one big
obstacle: You've got to win the hearts and minds of the workers, if you
want to represent them in contract negotiations."
At the ranch in Oxnard, where Coastal Berry's operation is winding
down, there appears to be much relief that the union fight has passed, at
least for now.
Walking along the rutted rows, where the berries are plump and ready
for picking, Murray said he's proud of the way workers conducted
themselves during the campaign, generally respecting each other's
differences and never losing sight of the job at hand.
All of the fruit being picked now is headed for canneries, the
fresh-fruit market having shifted north three weeks ago.
"This is my favorite part of the year: Everybody knows what to do; I
just have to stay out of their way," Murray said. "We've always treated
our workers with respect. If you don't do that, if you don't give them
good pay and good benefits, they're not going to stick around. We are
just doing what's right."
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