Wild Oats: Open for Business, but at a Price
Westport's new Wild Oats natural foods
supermarket, at the site of the former Food Emporium on Post Road West, now
sports an array of organic produce, prepared foods, herbal teas - and picket
lines. The store is the target of demonstrations by Local 371 of the
United Food and Commercial Workers International Union, which alleges that the
Wild Oats franchise is engaged in unfair labor practices and questionable
tactics in its relationship with the Food for Thought natural food store just
yards away over the town line in Norwalk.
The new Wild Oats franchise that
opened in Westport on 3 March is owned by Wild Oats Markets, Inc., which owns
and operates more than 100 health food outlets in the US and Canada under a
variety of local names. The new store is substantially larger than the
Food for Thought outlet next door, a health foods store that Wild Oats Markets
sold to a holding company called Grange Investments, Inc. in the summer of
2000. The sale came some two months after employees of Food for Thought
had voted for representation by Local 371. Approximately 65 employees of
the Norwalk Food for Thought outlet are still represented by Local 371 of the
United Food and Commercial Workers International Union, which represents more
than 15,000 workers. The approximately 110 employees of the Westport Wild
Oats store do not have union representation. Since the purchase of Food
for Thought by Grange Investments, eleven of its employees have been laid off,
many within weeks of the acquisition.
Local 371 has filed a complaint with
the National Labor Relations Board claiming that Wild Oats Markets has engaged
in a number of unfair labor practices, including harassing Wild Oats employees
who wanted to vote in favor of a union. Ronald Petronella, Executive Vice
President of Local 371 also indicated that former employees of the Norwalk Food
for Thought were allowed to apply for jobs at the Westport Wild Oats market, but
they were told that their applications would be placed in a "special
folder" - and that they were not likely to be hired as a result.
"People thought they had a right to join a union, and in exercising their
right to join a union this is their payback for doing that", he said.
In its fliers being handed out at the picket line, Local 371 claims that Wild
Oats Markets provides substandard wages and working conditions, including,
according to Petronella, no overtime for Sunday work, no medical benefits and
only a ten-minute break after six hours of work.
According to records obtained from Dun
& Bradstreet, Grange Investments, Inc. was formed as a private company in
2000, and had half of its estimated $31 Million in 2000 revenues from the
Norwalk Food for Thought outlet. Grange Investments purchased three
additional stores from Wild Oats Markets in October 2000. Randy Clapp, the
President of Grange Investments, was one of the founders of Wild Oats Markets
and retired after sixteen years of service before assuming the presidency of
Grange Investments. Wild Oats Markets, Inc. is headquartered in Boulder,
Colorado. Grange Investments, Inc. is headquartered in Lafayette,
Colorado, a town adjacent to Boulder, Colorado.
Mr. Petronella claims that the
relationship of Wild Oats Markets, Food for Thought and the recent events is
more than coincidental. "We see this as an alter ego situation,"
he said while manning the picket line in front of the Wild Oats outlet. He
says that the union has documentation showing that the new Wild Oats store was
stocked with goods that were stored at the Food for Thought outlet.
"If you were going to buy a natural food store, and you have a bigger one
opening up next to it, would you do it?"
Greg Corda, a manager at the Wild Oats
store in Westport, also sees this as an issue centering around union
organization efforts. "We're a non-union company," he said,
"and they don't like us. Period. They want our guy's dues, and
they're not getting them." He says that the protests may have had
some impact on store sales, "But we have no way to gauge it, it's a
brand-new store."
Wild Oats Markets brought in more than
$830 Million in revenues in 2000, but finished the year with an operating
loss. In an effort to compete more effectively in the increasingly crowded
market for healthy food products, Wild Oats has been shifting towards building
larger stores, typically with more than 40,000 gross square feet - the size of a
typical supermarket. Their strategy is to become a "category
killer", offering "natural" alternatives to most every item
carried in a typical grocery store, in addition to a broad array of prepared
eat-in and takeout foods.
As to whether Wild Oats will be a
union killer as well has yet to be seen. "We're hoping that Wild Oats
will give us a call and try to negotiate a settlement. We'd like them to
bring their standards up, even if they don't go union," said Mr. Petronella.
As to whether the demonstrations have been effective, Petronella is optimistic.
"I think that it's been going well," he said. "We have
spoken to Food for Thought customers who have tried out Wild Oats, and have gone
back to Food for Thought. They know the people at Food for Thought and
they are sympathetic to their cause."
5/11/01 John
Blossom
Coming soon: a related Fairfield County Bee article.
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