SoCal Grocery Stores Reach Deal with United Food and Commercial Workers

At LAT, "Ralphs, Vons, Albertsons, union reach labor deal, avert strike."

Apparently, both sides realized a strike would be devastating, as this earlier LAT report indicated, "In the event of a walkout, the chains' competition would be the big winners":

Today, Ralphs, Vons and Albertsons have fewer stores in Southern California, and fewer employees. Albertsons has closed 67 locations since the 2003-04 strike and worker lockout. Ralphs has closed 48 stores, and Vons and Pavilions are down 47.

The competition is filling the gap. Unified Grocers, which represents at least 526 stores owned by independent chains, controls 12.1% of the grocery market in Southern California and Las Vegas, according to research by the Shelby Report, a grocery industry publication.

Trader Joe's, with 106 stores, has 5.4% of the market. Smart & Final, Tesco's Fresh & Easy and Whole Foods combined control another 5.4%, according to the report.

Although these companies all target different consumers, they have one thing in common: They are, for the most part, non-union shops. And like the airline and auto industries, the three big unionized retailers all have legacy health, pension and payroll costs that put them at an economic disadvantage.

Smaller chains can also tailor individual stores to the tastes of the neighborhood.

For independent grocer Jax Markets in Anaheim, that means packaging meat in smaller containers and wooing customers with personalized service. The four-store chain caters to predominantly Latino shoppers. A number of its customers don't have cars, so the grocer offers a free shuttle service for anyone who lives within a five-mile radius of a store and is willing to spend a minimum of $30 in their trip to the grocery store.

"When the gas prices were going up, I wondered, 'Is it really worth it?' But it is," said W. Bill MacAloney, chief executive of Jax Markets. "People are shopping around, and that gives us an opportunity. So we need to do what we can to help our customers."

Serving ethnic shoppers can go beyond carrying brands they like. A number of economic factors persuaded Vons to close one of its locations in a working-class Latino neighborhood of Long Beach. Superior Grocers snapped up the outlet in 2003, before the strike, and transformed it into a mid-size store with bargain-priced produce and fast-moving register lines.

On a recent Monday afternoon, a mostly Latino crowd jammed the produce section, plucking up bags of mangoes the size of softballs for 99 cents each. Customers reached for fresh tortillas made in the store, freshly baked French rolls and loaves of Mexican sweet bread. Flat-panel TVs played Spanish-language news clips. On the overhead speakers, daily specials rang out in English and Spanish.

Four miles to the southeast, in the upscale Belmont Shore neighborhood, Vons operates one of its smaller specialty stores, known as the Market by Vons. Sparkling clean and quiet as a library, the store features a bounty of wine and a limited produce selection. Mangoes there cost $1 more than at Superior Grocers and were half the size.

"I love this Vons, but I don't shop here all the time," said Patty Barnett, 38, an artist who lives in downtown Long Beach. "I shop where there are sales."

Unemployment Rate Hits 12.1 Percent in California

At Los Angeles Times, "California unemployment rate rises to 12.1% in August." Another sign that things might not turn out badly for the Democrats in California 2012, but we'll see.

RELATED: "Another summer closure: Pat & Oscar’s." My family really enjoyed the food there. But when we were moving a few weeks back my wife went out to get dinner for everyone and she comes home with some fried chicken from Ralphs and says, "Pat & Oscar's is closed." So, I cruised by there to see for myself. A great location, right next to a movie theater and a Barnes and Noble. The restaurant always seemed busy. It's gone now:

Michele Bachmann Predicts Republican Victory in California Presidential Vote

I'm still not convinced, but Obama's losing his base even in the Golden State, so we'll see.

At LAT: "Bachmann predicts a GOP win in California in 2012."

Ralphs Stores to Close If Workers Go On Strike

Great news!

At LAT, "Ralphs says it will close stores if workers go on strike. Albertsons may follow."

The labor fight between union officials and grocery employers spilled outside of the negotiation room Friday as Ralphs announced that the company would “initially” close all 250 of its Southern California stores if workers go on strike.

How long these stores would remain closed is unclear.

About 18,000 employees are covered by the contract currently being negotiated between Ralphs, Vons and Albertsons and the United Food and Commercial Workers union. Ralphs has an estimated 22,000 employees in Southern California.

“During a strike, it is difficult to create a good shopping experience for our customers and a good working environment for our employees,” Ralphs spokeswoman Kendra Doyel said in a statement Friday. “We will evaluate the situation as it progresses.”

Another reason to hate unions.

See also: "Statement by the United Food and Commercial Workers International Union Regarding H.R. 2587: Republicans in Congress Put Corporate Interests Ahead of Job Creation." Well, jeez, where have I heard that before?

Israel and Marriage Key Issues in New York Special Election

Two of my most important public policy issues.

From John McCormack, at Weekly Standard:

How did Republican Bob Turner pull off an 8-point win (54%-46%) in a district that gave Turner just 39% of the vote in 2010 and went 55% for Obama in 2008? Sure, it helped that the Democratic incumbent Anthony Weiner resigned in disgrace after he accidentally posted a lewd photo of himself, intended for a young woman, to his public Twitter account. But scandal alone wasn't enough to flip New York's 9th congressional district to Republicans. In early August a Siena poll showed Democrat David Weprin leading Turner 48% to 42%, but by late last week Siena showed Turner had pulled into the lead 50% to 44%.

o win in a Democratic district, Turner needed Democratic votes. The two issues that seem to have helped drive some of the district's traditionally Democratic voters to cast their ballots for Turner were Obama's Israel policy and Weprin's vote for same-sex marriage. Former Democratic New York City mayor Ed Koch endorsed Turner primarily to send a message to Obama on Israel. Democratic state senator Ruben Diaz backed Turner because of Weprin's vote on marriage. Democratic state assemblyman Dov Hikind says both issues, as well as dissatisfaction with Obama's failed economic policies, were "overriding" factors that led him to support Turner.

"This is an underlying issue that is extremely powerful issue," Hikind says of Weprin's vote for same-sex marriage. Weprin didn't merely vote for the bill. He got on the floor of the assembly and compared voting against same-sex marriage to "outlawing marriages between Jews and non-Jews or interracial marriages.”

"The fundamental message was 'I'm an orthodox Jew and gay marriage is perfectly fine,'" Hikind says of his Democratic colleague's speech. "To me, when he did that, he crossed every single line." Forty orthodox rabbis declared that orthodox Jews could not support Weprin.

Keep reading.

And yeah, he crossed every single line, ASFL.

Larry Powell, Fresno County Superintendent of Schools, Retires for One Day in Salary Give Back to District

Not the kind of story you see very often.

At Los Angeles Times, "Fresno school official has a gift for giving":

Reporting from Fresno — It was supposed to be a quiet thing; no fanfare, no press releases.

Fresno County School Supt. Larry Powell and his wife, Dot, a retired principal, had figured out a way to help imperiled programs in their struggling school district.

He would retire for one day. Then come back to work at a pittance compared with his former salary — putting more than $800,000 of his salary and benefits back in the district's coffers.

But in tough economic times, when public trust has been repeatedly battered, word of an elected official giving back money quickly made its way from a Board of Education meeting to national headlines. Powell spent his "retirement" giving television and magazine interviews.

"We were trying to not create a big stir," said Armen Bacon, spokeswoman for the Fresno County Office of Education. "But we're living in a time of despair and people are so hungry for stories about the impact one person can make."

Powell officially retired Wednesday. The district was contracted to pay him $235,000 plus benefits a year through 2014. He went back to work Friday, rehired at a salary of $31,020 with no benefits, to run 35 school districts with 195,000 students.

Powell said he will give his new salary to charity. His former, heftier salary will go into the district's discretionary fund.

The Boston Globe has more:

Powell, a Baptist minister and lifelong educator who began his career as a high school civics teacher, was appalled by the revelations in Bell, the poor Southern California city where corrupt public officials secretly padded their paychecks by hundreds of thousands of dollars. “My wife and I asked ourselves, ‘What can we do that might restore confidence in government?’’’ he told the Associated Press. Their answer was to voluntarily forgo $800,000 in salary and benefits over the next 3½years. Powell chose to “retire’’ and then be hired back for just $31,000 a year - substantially less than what first-year teachers in California are paid. For that modest sum, he will continue to oversee 325 schools with 195,000 students.

He's not even keeping the $31 thousand.

But go back and check that Los Angeles Times piece. Powell can do this because his wife's a former principal and he'll be on her health care, and he's already earned at $200 thousand annual retirement from the state retirement system. Basically, the guy was raking the cash off taxpayer largesse and thought, "You know, I've had it good. Perhaps I might give some of this back so that others won't need for things." And that's the honorable thing right there.

More Cuts Likely to California Higher Education

At LAT, "State colleges, universities may need to make more budget cuts":

Students starting the school year at California Community Colleges this week will pay higher fees and have fewer courses from which to choose. At California State University campuses, students will find their classes packed, fewer library books available and the ranks of part-time faculty thinned.



That dismal picture could worsen if the state's financial problems force colleges and universities to make additional budget cuts mid-year, leaders of the systems said Monday during a conference call with reporters.



As it is, the state's 112 community colleges will offer 5% fewer classes this fall, Chancellor Jack Scott said. Based on projected annual demand, an estimated 670,000 students who otherwise would enroll in at least one class will not be served, he added.



Community college students, whose fees already have risen to $36 per unit for this school year from $26 last year, are likely to face a further increase if state revenue doesn't meet projections. State funding to the two-year colleges was reduced $400 million for this year. Further cuts would trigger an additional $10 per unit fee increase for spring 2012.

Continue reading.



I think it was $10 to go to community college back in 1979. That's when the state still promised a basically free college education to all those who could benefit.

Northrop Grumman Bails Out of Los Angeles, Ending Headquartered Relationship Dating From 1939

At Los Angeles Times, "Northrop execs bail out of L.A., but the firm is still grounded in the region":

Northrop Grumman Corp., the last big-name aerospace company headquartered in Southern California, is headed out of town this week.



The nation's second-largest military contractor, founded in 1939 by visionary aircraft designer Jack Northrop, is officially moving its main office to Falls Church, Va., on Monday. It is a milestone for the corporation that along the way absorbed big names like TRW Inc., Litton Industries Inc., Westinghouse Electronic Systems and Teledyne Ryan Aeronautical.



Today, the company is an industry giant with about $35 billion in annual sales, building such things as sophisticated satellites, high-flying spy drones and the ghostly B-2 stealth bomber. While 300 members of its corporate staff departs, it still will have about 30,000 jobs in the Southland and remain one of the region's largest private employers.





The company joins an exodus of military companies — including Lockheed Martin Corp., Science Applications International Corp. and Computer Sciences Corp. — that have abandoned the Southland since the mid-1990s in favor of headquarters nestled nearer to decision makers in Washington.



"This is an important move for the company, and it's one that we believe will improve the effectiveness in serving the nation and our customers," said Northrop Chief Executive Wesley G. Bush in announcing the decision to move the company back in January 2010. "The proximity to Washington enables us to be a more integrated part of the federal process."

More at that top link.

Anonymous Hacks BART

At E-Week, "Anonymous Hack Exposes Personal Data of San Francisco-Area Commuters."



And LAT, "Hackers attack BART, Fullerton police websites," and "Protest closes 4 BART stations, leaving commuter crowd stranded."

London Riots Make Front Page at Los Angeles Times

Yesterday's cover at the Los Angeles Times was a register of global social breakdown. At the left-hand side, "London Looks Inward, Lashes Out":

Facing a storm of criticism for remaining on vacation while his city burned, London Mayor Boris Johnson returned Tuesday to tour Clapham, a well-off south London neighborhood that was one of many stunned by three nights of hopscotching riots that left one man dead and littered the urban landscape with hundreds of damaged businesses and residences.



The shaggy-haired conservative was greeted by crowds of furious store owners asking where police were as their livelihoods were destroyed.



"I felt ashamed," he said after viewing the damage, "that people could feel such disdain for their neighborhoods."



Community leaders, sociologists, police and lawmakers were left groping for a meaning for the worst social unrest to hit London in a generation. The riots laid bare a phenomenon that has stirred deep unease in Britain in recent years: "yobbery," the anti-social behavior of a generation believed to be so alienated from the norms of civilized society that pockets of some cities live in fear.

Also at the paper, upper right, "Divided Fed Has Surprise for Markets." And then below that, "Angst on Main Street Threatens Recovery."



And at bottom is a story about long-shot GOP presidential candidate Fred Karger, "No Illusions, Just a Message for Gays":

Karger finally came out to his parents in 1991, after nursing a friend who died of AIDS. They accepted him, Karger says, but never seemed entirely comfortable. So he kept closeted, which was also better for business. Although he told his business partners — "it wasn't a surprise, and didn't change who or what he was," says one, Lee Stitzenberger — maintaining his secret kept Karger's sexuality from becoming a campaign issue.



When his parents died and he retired, Karger finally came out publicly. It was 2006 and he was 56 years old.



There was no grand announcement. He simply took a lead role in the unsuccessful campaign to save a Laguna Beach gay bar, the Boom Boom Room. Three years later, he founded Californians Against Hate to oppose Proposition 8, the measure banning same-sex marriage, and used his expertise to expose secret funding of the measure by the Mormon Church.



To some extent, his presidential campaign is an extension of that effort. By nudging Mitt Romney, the GOP front-runner and a prominent Mormon — preferably on stage, in front of a national TV audience — Karger would like to stop the church crusade against same-sex marriage. In his view, Romney could make that happen with a phone call.



Romney's feelings are unknown. His campaign declined to comment.

Karger might be a nice guy personally, but he's aligning himself with the progressive hate industry. And the Times is wrong on Mitt Romney. Romney recently "came out" and signed onto the pledge from the National Organization for Marriage to oppose gay marriage.



And last but not least, the one piece of front-page news that reflects the flip side of social decay, "Outlines of Downtown Stadium Deal Approved." There's a cool little graphic as well. We were just down there for X-Games and I was really impressed with the upbeat climate around Staples Center. That graphic looks like the stadium would be kinda crammed in there tight, although I'd have to spend more time downtown and get familiar with the area. The main thing though is that it would likely bring NFL football back to L.A., and needed jobs and civic vitality to go with it. That's the reverse of the social breakdown that seems to be breaking out everywhere these days.

Fresno State Sweet Corn Is Best-Kept Secret No More

I got a kick out of this story, which ran on the front-page of the Los Angeles Times, "Customers stalk Fresno State's sweet corn."

Reminds me of my dad a little too. We used to go to some local produce stands to buy fruits and vegetables. You're surrounded by agriculture up there, so it brings back fond memories. And Fresno State is world-renowned for its ag programs anyway. If we don't move out of state, we'll probably retire up that way, although that's still a long time from now.

Only Californians could screw something up so magical...

Urban legend tells of a "Big One" that would crack along the San Andreas fault sending California floating off into the ocean. First, we couldn't be so lucky. Second, unless you have the intelligence of Dexter Manley, you know that is effing stupid and unfeasible. Regardless, that would be awesome because California is so far off the reservation it probably can never be saved. Only those liberal socialists can take a state that would have the 7th largest economy in the world and tax the shit out of it as they expand the already massive government until the state is completely flat broke. It seems almost impossible to have a state with the most millionaires by a landslide go broke. You really really have to try to screw that up. Governor Schwarzenegger, on Monday, announced a state of fiscal emergency and unveiled a plan that relies largely on cuts to health care and social services for the poor. About $7.4 billion of his proposal would come from cuts, include reducing cash assistance to needy families by 15.7 percent in April, then eliminating the entire welfare-to-work program in July. At this point, it's like Clark Gwiswold putting chewing gum in the hole at the Hoover Dam.


This article was brilliantly written by one of those "evil rich guys" in California making over 200,000...selfish bastard. It's well worth the read.

Here's my favorite part:

People in California making over 200,000/year pay 66% of the state's taxes yet they only earn 39% of the state's income and most of those are small businesses which produce the majority of the job growth. Explain the fairness in that liberals...oh that's right...you don't care about fair.


Like the harried traveler who made famous the expression, “Don’t touch my junk”, I have elected my own personal protest, California style. I have decided to OPT-OUT of California to protest my overgrown state government. I am tired of California legislators sticking their hands in my pants to pay for the European style social welfare state they have created. My work, my earnings and my taxes will go elsewhere.

I am one of those evil “high-earners” in California with income over $200,000 per year. It is unimportant to state legislators that we high-earners pay most of California’s taxes. According to the Franchise Tax Board, in 2007 more than 87 percent of California capital gains taxes came from taxpayers with adjusted incomes of more than $200,000. Residents with incomes over $200,000 pay 66 percent of its income taxes even though earn just 39 percent of the state's income. More important to California’s future, most of us are small businesses, which account for 65 percent of new job growth in the state.

When I moved to California in 1981, California was truly the Golden State. Its budget revenues of $22.1 billion levied just $920 per person from its population of 24 million. It had great freeways, great schools and its inexpensive college/university system was the envy of the planet. By 2009, the budget revenues had grown to $86 billion, or $2,324 per person from each of its 37 million residents. But California has a $25.4 billion deficit, which means the aging “movement” activists who govern this state are spending $114 billion or $3,081 per resident. Spending is up 520% from 1981.

The $86 billion in revenues California collected from capital gains and income taxes is not the only tax that has increased. Despite Prop 13 that capped property taxes at 1%, property taxes expanded from $6.36 billion from 1980-1981 to $43.16 billion in 2006-2007, an increase of 579%. For point of reference the CPI index increased just 133%, from 88 in 1980-1981 to 202.4 in 2006-2007.

The Legislative Analyst's Office says California will have an additional $6.1 billion shortfall in the current fiscal year reaching $25.4 billion next year. Legislative Analyst Mac Taylor says the state faces deficits of $20 billion each year through 2015.

"Unless plans are put in place to begin tackling the ongoing budget problem, it will continue to be difficult for the state to address fundamental public-sector goals -- such as rebuilding aging infrastructure, addressing massive retirement liabilities, maintaining service levels of high-priority government programs and improving the state's tax system," the report said.

How did California voters respond to this fiscal irresponsibility in November? They rewarded the Democratic Party with every elected office from Governor to Insurance Commissioner, and returned Barbara Boxer to the US Senate. I guess California voters did not get the Tea Party memo that resulted in a “shellacking” of 64 Democrat Congressional seats in the rest of the nation. The political tsunami that hit even parts of the Eastern seaboard in 2010 totally missed California. Perhaps it ended somewhere in Nevada with the re-election of Harry Reid.

So, in protest to the insensitive indulgent big-spenders that run Sacramento, I say, “Don’t touch my junk!!!” My beautiful California home is now on the market for $2,000,000. My next home will be in a no state income tax state like Texas or Nevada. I will not buy that new Jaguar that I was planning to purchase for $75,000. I will keep my old Cadillac and deprive Sacramento of $6,562 from its 8.75% sales tax. My next purchase for my real estate business will be an office building in Prague in the Czech Republic, a democracy that has lower taxes and fewer regulations. My income will remain either offshore or in a state that does not confiscate like the money grubbers in Sacramento. And, I will not be investing my capital to create any new jobs in California. In the digital age, my staff will be located in states that are a little more business friendly.

Apparently, I am not alone. Migration out of California exceeds the rate of almost every other state. Why are my fellow “high-earners” leaving the Golden State? Maybe it is because California ranks nationally in the bottom two for business friendliness while placing third in state income taxes.

We have Jerry Brown as our Governor again, meaning that he will live his entire life without a real job. The Central Valley, once agricultural wonderland of America, has Depression era unemployment, this as a result of a green-inspired court water shut-off designed to protect an Anchovy sized piece of bait called the Delta Smelt. And, our brilliant voters – including those working class voters most impacted – rejected Prop 23. That means that on January 1, 2011, California must begin to reduce our greenhouse gases by 40%. To achieve this noble goal, we seem certain to make ourselves even more uncompetitive with other countries and other states.

If that was not enough, voters also approved Prop 25 which allows the public union dominated Democrats to pass its budget with a simple majority. They did such a good job ($20 billion shortfalls) when they were forced to obtain a 2/3rds vote for approval. They no longer will need a single Republican vote to pass their budgets.

Margaret Thatcher remarked to Parliament on February 22, 1990, “The trouble with socialism is that you eventually run out of other people’s money.” Such will be the fate of the failed state of California and its free spending legislators, when high-earners like myself vote with their feet, and their wallets, and take their earnings elsewhere.