February 2015 - Page 3 of 3 - Western Growers Association Western Growers Association

COMPENSATION & HR Practices SURVEY Invaluable Tool for HR Professionals

February 1st, 2015

The human resource staff at Tanimura & Antle spend a lot of time carefully filling out the forms that make up the annual Western Growers Professional Compensation and HR Practices Survey.

“We are spending a lot of time getting it right and we hope other companies are doing the same thing,” said Carmen Ponce, vice president of human resources and house counsel for Tanimura & Antle (T&A), which is headquartered in Salinas, CA.

As one of the larger companies in the fresh produce industry, T&A has a big labor force and many different job titles. In fact, Ponce said the firm has many bifurcated positions that don’t quite fit the definitions in the survey. “We have worked closely with Western Growers to add job descriptions to cover the positions we have,” she said. “The survey does a great job at the management level. At some of the higher levels it is a little more difficult to fit the job to the job description.”

For example, her own job combines being the company counsel with running the HR department. There are not many other companies that combine those two responsibilities.

Nonetheless, Ponce calls the survey “invaluable” as T&A goes about the task of making sure it is compensating its employees correctly. Besides the Western Growers compensation survey, the firm also routinely participates in other national and local surveys as well as compensation surveys that are not produce industry-specific but more general in nature. Ponce said every survey has value but the more specific to the industry and the geographic area, the more relevance it has to the participating company. It is for this reason she urges other fresh produce companies to take the same due diligence that T&A applies to the task when they are filling out the survey questions. “Our payroll manager is the person that actually fills out the survey,” she said. “She typically does it over a four to five week period and I’d bet she spends at least 50 hours on it.”

Again Ponce said the number of job classifications at T&A require that it be a substantial undertaking. But she reiterated that it is well worth it. As a matter of course, Ponce said T&A does not adjust wages annually. She said the company has a very generous wage, bonus and benefits package, and endeavors to be toward the higher tiers when it comes to employee pay and benefits. Consequently, T&A carefully analyzes the surveys that it participates in to make sure its compensation packages are in line with where it wants to be. “We certainly don’t want to be below the 50th percentile and I’d say we are more comfortable up near the 75th percentile. We look at the survey and do adjust salaries accordingly. This past year we made adjustments in several different classifications.”

Prior to participating in surveys, Ponce said the company hired consultants to analyze its pay levels, but she added that it is difficult to get an accurate assessment when you are comparing your numbers nationally. It is even difficult on a regional scale. “The pay scale in Monterey is different than it is in San Francisco or Los Angeles.”

Karen Timmins, senior vice president of human resources for Western Growers, said that is precisely why the association launched its annual compensation survey six years ago. Prior to the WG survey, she said there was no accurate way for a fresh produce industry company to compare its compensation packages against like employers working in the same environment and covering the same types of jobs.

From that first survey in 2010, Timmins said the Western Growers survey has expanded significantly and the participants have more than quadrupled. “Every year we are adding job descriptions. That’s the key…the job descriptions have to be accurate.”

Timmins said the WG HR staff and Western Growers’ outside consultant—Fran Mueseler, certified compensation specialist at PeopleMatters LLC—spend a lot of time working with participants to make sure they classify each employee correctly as they fill out the survey. The key is to have this aggregated information accurate so that a user of the resulting survey can easily compare their own company’s job descriptions with those in the survey.

Timmins reminds both returning participants and those contemplating providing information for the first time that no member of the Western Growers staff ever has access to the raw data. PeopleMatters, an off-site third-party independent contractor, aggregates the information and creates the report that is then presented to the Western Growers staff as well as participants and others who pay to see it. Firms can purchase the report for a fee of $1,500 for the compensation report, $500 for the HR practices, or $1,800 for both. Survey participants receive the reports to which they contributed data free of charge.

While filling out the report can be time consuming, Timmins said an average-size company should be able to provide all the information asked for in less than an eight-hour work space. Of course, she said, a larger company will require more time. But she added it is well worth the effort and a proven benefit in the world of human resources.

At the recent Western Growers Annual Meeting, Frank Wagner, who is in charge of compensation for Google, said wage and benefits surveys are critical in helping a firm pay its many employees properly. Wagner said Google wants to be at the top end of the pay scale for the technology sector. To accomplish that task it participates in the Radford survey, as does virtually 100 percent of the technology sector. Google, Apple, Twitter, Faceook…all of those firms provide compensation information to the third-party Radford Company, which publishes a report for the technology companies much like PeopleMatters and WG do for the fresh produce industry.

Timmins said the participants in the Radford report are named although the information is still presented in an aggregate form. For these first five years of the WG Compensation Survey, the companies participating have not been named. Timmins has promised the participants that until the survey includes at least 100 different companies, the individual firms will not be released.

For the 2015 survey, the WG HR executive expects to reach that 100 company threshold. “Last year we had well over 100 companies request surveys but for one reason or another, some people didn’t finish the project. We had 88 completed surveys.”

That was about 30 percent greater than the previous year. A similar increase this year will find the number easily topping 100. Timmins believes publishing the names of the participants will result in another big jump in participation. “When companies see who is participating, they will want to get involved.”

For the uninitiated, the Western Growers Compensation and HR Practices Survey collects base pay and bonus salary data for executive, sales and professional positions in the Arizona and California specialty crop industry. Timmins said this year, “we have introduced a new feature on our website that will make entering pay data much easier. This means less work for members to get top-notch feedback about your compensation and benefits programs.”

The HR Practices Survey collects data about performance appraisals, merit increases, bonus programs and eligibility, austerity measures, cost sharing of benefit plan premiums and more.

Firms are invited to participate in both surveys, but they can opt to do just one or the other.

As always, an independent, certified compensation specialist analyzes company information to ensure the confidentiality of your data—no one at Western Growers sees individual information. Data is collected for executive level, sales/marketing, logistics, food safety and plant/office/field positions. For a full list of jobs, visit www.agsalary.com.

Timmins reiterated that “because the data in these surveys is unique to agriculture in California and Arizona, it provides participants a regional view of how regional companies pay and reward their employees. This data allows decision makers to compare and contrast their salary and benefits programs when making critical budgeting and planning decisions. The survey results provide a benchmark when making hiring and promotion decisions, allowing business owners to recruit and retain the best talent.”

Ponce of T&A said the report is very professionally done and it is easy to extract the information a company needs to do vital wage and benefit comparisons.

Participants can sign up at www.agsalary.com. Participants will have until mid-March to enter their data. If you have questions, contact Karen Timmins at 949.885.2295 or at [email protected]

Tags: Agriculture
Posted in WG&S Magazine, February 2015 Issue | No Comments »

INDUSTRY INNOVATION: WG Takes Proactive Position in Technology Sector

February 1st, 2015

In his January column in this magazine, Western Growers President and CEO Tom Nassif told readers it is the association’s goal “to advance technology innovation in the fresh produce industry thereby improving our ability to produce more food in more efficient ways.”

He said the association is not willing to sit back and let others do the heavy lifting. It needs to be a catalyst in bringing about change, and will seek out and work with technology firms to identify and develop solutions for the industry. “Western Growers will be participating…as a strategic partner lending expertise, involvement by staff and members, support and an investment of dollars. This is an exciting endeavor and an exciting time for agriculture. A new age of agriculture is taking shape; one of opportunity and endless possibility.”

Nassif’s call to arms in January followed a similar beating of the drums by 2014 WG Chairman of the Board Bruce Taylor of Taylor Farms at the association’s Annual Meeting in Las Vegas in November in his Chairman’s Report. “We have to change how we go about things,” he said, noting that in the future, his descendants shouldn’t be facing the same problems the industry has today.

Taylor said the industry has been fighting the same battles for years, but now it needs a new direction. “A definition of insanity is doing the same thing over and over again and expecting different results.”

He asked the audience to help “accelerate innovation.” He believes that through collaboration the industry can solve its most difficult challenges with 21st century technology.

The common tone of Taylor and Nassif’s comments were not by coincidence. Western Growers has set itself on a course to find technology solutions to help solve the industry’s pressing problems. New solutions are needed to feed the billions that will be walking this earth in the next generation. The same land being farmed in the same manner isn’t going to do the trick.

Hank Giclas, senior vice president of strategic planning, science and technology, said WG’s technology focus has been incubating over the past year. “The Western Growers staff has been charged by the association leadership to develop programs that will identify and bring to the industry new ideas and new technologies that address the concerns of the fresh produce industry.”

Giclas said the WG board members have discussed the proposition throughout the past year and staff has been engaged in fashioning a proactive program. “There are many different fronts on which technological solutions are needed.”

The WG science and technology executive said the ultimate goal for farmers is to continue to produce an abundance of food while reducing their footprint and using fewer resources. So as the WG staff began exploring what the association could do, Giclas said it became clear that technological solutions in many key areas would be the answer. Reducing the environmental footprint and the compliance burden of growers, increasing yields, reducing waste and creating more nutritious food are all worthy goals that must be achieved by the next generation of farmers.

“That was the challenge put before us and the Western Growers staff has been working diligently to create a program where we can use our time, our talent and our resources to help the industry find solutions.”

Giclas said Western Growers has set its mind to becoming a leader in this process. “That is what is setting our play on this issue. Many associations are doing what they can to sift through the myriad of technology vendors and to help the industry gain knowledge of what’s out there. By and large it is then up to the industry itself to judge the merits of these technologies.”

Giclas said Western Growers is going to take it several steps further. “We are approaching it differently; we are working with our leadership and members to identify the priority challenges they face where technology may provide a solution and then we will seek out technology and innovation to address those challenges. Western Growers will remain poised to invest what is necessary, to vet, accelerate, and nurture those ideas that have viability and then to connect those technology firms with key industry mentors.”

Giclas said Western Growers is currently examining many different avenues to facilitate technological advances. He said that several ideas are being discussed and many may be utilized including such vehicles as “pitch events” or “shark tanks” where Western Growers members would hear and judge new innovations. When viable technologies are identified through vehicles such as these, a next step would be to help these innovators take ideas to a “proof of concept” stage by engaging them with WG members as mentors or coaches.

While the former is a means of seeking out existing ideas and technologies focused on key problems, another potential, and not mutually-exclusive approach, would be to actually generate new ideas by offering challenge grants or holding “hacks.” This approach would define the problem and provide specifications for a solution or technology. In the case of a challenge grant, a cash award would be offered to the innovator who solves the problem to industry specifications. Giclas said many government agencies utilize this type of approach—the most well known being the DARPA Grand Challenge in which the Defense Advanced Research Project Agency offered up to a $1 million prize to innovators who could develop an unmanned vehicle that would navigate an arduous course through the Mojave Desert in a defined amount of time. The first year, no vehicle completed the course so no award was paid, but much was learned. In the second year, several vehicles completed the course and the fastest team won.

He said another approach was the “hack” where programmers gather to create software to address problems, increase efficiency or develop other applications that may reduce cost or burden or provide value to members. Usually these events are 24-hour work sessions where you bring in some young programmers, “fill them with energy drinks and pizza, pump in a background pulse of indie music and set them loose to tackle a problem.” At the end of the event, teams pitch their ideas and winners are chosen and showcased. Sometimes a cash award or awards are also offered. Novel technological solutions often spring from these gatherings.

Giclas reiterated that Western Growers is not just going to be a third-party participant. It is committed to accelerating innovation and solving problems. “When we find ideas with potential, we will seek out or provide the resources to ensure their success. That may include seed money, connections, or other support. The idea is to generate ideas, put these people in the field with a grower or a group of growers and nurture the idea and let them prove the concepts in a real world environment all the while with growers taking a hands-on approach.”

This, Western Growers believes, is the recipe for success: address a need, tailor it to the industry, develop the solution and define the market. Giclas said in his discussions with investors they have all expressed excitement about this approach because it demonstrates a clear connection between the innovators and their potential customer base. Giclas said for the most part, the industry has been inundated with technology experts “that I characterize as having a solution in search of a problem.”

The WG approach will define the problem and search and accelerate a technological solution.

Though many of these ideas might seem a bit foreign and they are certainly not the way the industry has traditionally operated over the past 100 years that could be a good thing if Taylor’s definition of insanity is accurate.

Tags: Agriculture, Efficiency, Energy, Environment, Farm Equipment
Posted in WG&S Magazine, February 2015 Issue | No Comments »

California State Senator Ben Allen represents District 26, which includes Santa Monica and the Westside of L.A. County

February 1st, 2015

(Editor’s Note: The questions and answers have been paraphrased for brevity and clarity.)

Ben Allen won in his first attempt for the California Legislature in November of 2014. At 36, he is the second youngest senator in the state.

Where did you grow up and did you have any defining moments in your childhood?

I grew up in Santa Monica and went to public school from kindergarten through high school. I went to Harvard for my undergraduate work and then went to England for grad school. I lived a typical life in an urban environment although I did spend a lot of time with my father hiking in the Santa Monica Mountains and enjoying that rural environment.

I also should mention that my father is English. He grew up in a small town in Southern England and wanted to be a farmer. Instead he became a professor of literature and teaches at UCLA. But we spent a lot of summers when I was growing up in England in that rural environment. I loved walking through the countryside and interacting with the people there. It gave me an appreciation of the rural life.

Explain your career stops from college in England to the state Senate?

After grad school I worked in Washington, D.C., for a while and then I came back to California and went to law school at UC Berkeley (class of 2008). That was quite an experience. While there I served as the student member of the UC Board of Regents. I interacted with many very impressive people including the governor and the lieutenant governor and many other elected officials. We worked on some fascinating issues including efforts to establish UC Merced and dealing with ag research at UC Riverside. Serving on that board I got a real sense of the state as an entity.

Did that experience establish your plan to run for the state Legislature?

I thought it might be a possibility, but honestly if you told me a couple of years ago I would be in the Legislature today, I would not have believed it.

After law school I came back to Santa Monica and got involved in the local school district. I ran for a seat on the Santa Monica-Malibu Unified School District board and won in both 2008 and 2012. For a time I served as president of the board. I served on the board up until I was elected to the Legislature last fall.

My decision to run for the state Senate happened very quickly. My congressman, Henry Waxman, stepped down unexpectedly in January of 2014 after 40 years in the House of Representatives (announcing he would not seek re-election in November 2014). So very quickly the Democrats were talking about whom was going to replace him. (State Senator Ted Lieu to ran for that seat, which opened up Lieu's state Senate seat.) I had very little time to decide if I wanted to run. A couple of people urged me to and I did. There was a very strong field in the primary but I did win and then won a contested battled in the general election.

If I look back a couple of years, I did not think I was going to be running for the state Legislature in 2014. But if you look at the trajectory of my career, it was headed in that direction.

Did you come to Sacramento with an agenda?

Public education is a big area of concern for me. I serve on the Senate Budget Committee that oversees the state’s education budget. I am also very concerned about Los Angeles with regard to mobility and transportation. I am on the Transportation and Housing Committee. The transportation situation in Los Angeles is a quality of life issue for me. I also was selected to serve as chair of the Senate's Committee on Elections and Constitutional Amendments. I’d like to see what we can do to get more people to vote and to get more involved in our political process.

Another interest of mine is public arts. We have a vibrant art community in Santa Monica and I am on the state legislature’s Joint Committee on the Arts. I was also appointed to the Veterans Affairs Committee. I think we have the largest VA hospital in my district. I am very interested in doing right by our veterans.

Lastly, I am on the Natural Resources and Water Committee. The environment and the preservation of open spaces like the Santa Monica Mountains is very important.

What are your first impressions of Sacramento?

First of all it is a very fascinating job. I get to interact with a lot of different people…and some very, very smart people…on a daily basis. We are dealing with many different issues every day from nurses to education to the coastal commission to the state budget. The issues we are dealing with are very broad. There are some things in the culture of elected office that I am not going to enjoy—specifically re-election fundraising. That is not enjoyable. I already have an account open for my 2018 re-election campaign.

How will you get up to speed on the many issues you have to deal with on a daily basis? For example, what is your plan to learn about agriculture?

I do represent a very urban district, although there is a winery in my district on Catalina Island and I understand there is some small freelance agriculture on the Palos Verdes Peninsula. I plan to talk to folks like Western Growers and I want to get up to speed on water issues and other issues that affect agriculture. I hope to spend time in the agricultural world and get a sense of the issues that growers face. I consider myself open minded and I am very interested in learning about agriculture.

Where do you place yourself on the political spectrum?

I am from a very liberal part of the state — the People’s Republic of Santa Monica and I am liberal. But I am open-minded.

California has one U.S. Senator that just announced she is stepping down and there is expected to be a change in the Democratic leadership in the state over the next election cycle. What’s in your political future?

It sounds trite but my focus is just to be the best senator I can be. My philosophy is the better job you do in your current job, the more opportunities you will have down the line. I was just elected so I don’t have any plans at this point for any other office. I have opened an account for re-election in 2018 so I’d say that at this point I certainly plan on running for re-election.

But there are term limits and I know I won’t have this job forever. I just plan to continue to build my career and see where it goes. I do not have a master plan.

Our members grow some of the best fruit, vegetables and nuts in the world. Are you a consumer of our products? Do you have any favorites?

I am. My mother taught me well. I eat lots of fruits and vegetables and nuts. Right now on my desk I have an Envy apple that was given to me at the Capitol. I love persimmons and pears and grapes. On the vegetable side I love Brussels sprouts, roasted and even steamed if they are done right. I am a big eater of salads. I love salads.

In Santa Monica we have a very vibrant and robust farmers’ market. In fact, we have several different farmers’ markets. I’d love to walk those markets sometimes with you guys (farmers) and observe the closing of the loop from the farmer to the consumer.

Tags: Agriculture, Environment, Legislative, Politics, Water Supply
Posted in WG&S Magazine, February 2015 Issue | No Comments »

The Labor Unions and “Groundhog Day”

February 1st, 2015

The California Legislature is back for a new two-year session with dozens of newly-elected members and new leaders in both the Assembly and Senate. Reporters and pundits are busy speculating about their agendas, what issues will dominate attention and the role Governor Jerry Brown will play in all of it.

For all the speculation, however, one thing is certain: California’s big labor unions will return to the Capitol with another long and ambitious wish list, including bills to impose more mandates on the state’s heavily over-regulated employers.

This is a sorry version of the movie “Groundhog Day.” Every year, labor unions conjure up horror stories about employers doing terrible things to employees, and with the help of allied liberal groups and media outlets, the narrative is created: Businesses are hurting workers by (fill in the blank), and existing law and/or enforcement is inadequate to protect workers from this abuse, so we need a new law that cracks down on these abusive employers.

Business interests then react by sending forth their lobbyists to try to inject missing facts, context and logic into the discussion. And to argue that the legislation promoted by labor unions is not necessary/would cost jobs/is punitive and would speed the loss of California businesses to friendlier states.

The union-sponsored bills then go through committee hearings in the Legislature, which is not a serious process. Bills of this sort are referred to the Labor Committees of the Assembly and Senate, which are stacked with pro-union Democrats and just one or two Republicans. Rather than giving serious consideration to the legislation and the facts and arguments on both sides, the committees simply act as another platform to generate media coverage for the unions before approving their bills.

At this early stage of the process, virtually every advocate on both sides knows that the unions’ bills cannot be stopped in the Legislature (although there have been notable exceptions, such as the defeat of the United Farm Workers’ 2012 bill reducing the overtime requirement for field workers from 10 hours to eight hours per day). The influence of the labor unions in the California Legislature is simply too great, and the advocates know that the fate of most labor-sponsored bills will be determined by the governor.

This puts enormous pressure on the governor. Every summer, as lawmakers prepare to wrap up their work for the year, the governor’s staff nervously watches as multiple union-backed bills steadily advance toward their boss’s desk. Republican governors—especially George Deukmejian and Pete Wilson—had no difficulty rejecting every onerous labor union bill that made it to their desk, but Democratic governors, elected with the strong support of labor unions, see things differently. They are likely to agree with the unions that there is a legitimate problem that the unions’ legislation properly addresses. And where they agree with business advocates that the unions have overreached, a veto may be in the cards, but the unions’ calculation is that no Democratic governor will veto all their bills, no matter how harmful they may be to jobs and the economy. Their logic is simple: If we throw lots of bills at the governor, some will get through, if only for purely political reasons.

So 2015 begins with business advocates—and Governor Brown’s team—watching for the next wave of labor union legislation and preparing to live through another Groundhog Day.

Here’s an idea: STOP!

Recently, former Governors Deukmejian, Wilson and Gray Davis co-authored an opinion article in The Los Angeles Times in which they called on the Legislature to halt, for the next five years, passing any legislation that would cost jobs. It sounded like a call for a moratorium to allow the state’s job creators a chance to breathe (and build their businesses) without worrying about labor’s next legislative fusillade.

Of course, a Legislature dominated by members closely aligned with labor unions is unlikely to heed the former governors’ call. But they should. They should give a serious look at the immense body of statutes and regulations California has imposed on employers and worry more about fair and adequate enforcement of those rather than adding new laws and rules on top of the massive and incomprehensible heap.

“Groundhog Day” is old and tired, and it is stifling California’s job creators. Only the Legislature can make it stop.

Tags: Agriculture, Farm Labor, Legislative, Politics
Posted in WG&S Magazine, February 2015 Issue | No Comments »

U.S. Supreme Court Rules on Unpaid Security Checks

February 1st, 2015

In December, the United States Supreme Court addressed whether employees are “working” while waiting to undergo mandatory, end-of-shift security checks. The Court unanimously held that the time spent by warehouse workers waiting for and undergoing security screenings before leaving for the day is not compensable under federal law. The decision in Busk v. Integrity Staffing Solutions, Inc. was widely heralded (or criticized) in the mainstream media as a big win for business, but California and Arizona employers shouldn’t stop shelling out wages for security checks or other post-shift activities just quite yet.

Federal Law Applies

The plaintiffs in Busk were hourly warehouse workers employed to retrieve products off shelves and fill orders for Amazon customers. To prevent employee theft, Integrity Staffing Solutions (an Amazon contractor) required the workers to undergo a security check at the end of their shifts before allowing them to leave for the day. During the screening, employees had to remove wallets, keys, belts and other items before passing through a metal detector. The employees alleged the screening process took roughly 25 minutes each day for which they were not compensated.

The employees filed a class action lawsuit seeking to recover unpaid wages for this time. The trial court dismissed the employees’ claim, holding that time spent going through security was not compensable under the Fair Labor Standards Act (FLSA), as amended by the Portal-to-Portal Act. On appeal to the Ninth Circuit (which covers Arizona and California), the appellate court reversed the district court’s ruling under the theory that the test of whether a pre-shift or post-shift activity should be compensable turns on whether the employer requires the activity. The U.S. Supreme Court granted Integrity Staffing Solutions’ petition for review.

According to the Supreme Court, the issue turned on whether the security checks are sufficiently “integral and indispensable” to employees’ primary work activities to count as paid working time under the FLSA. Justice Clarence Thomas, writing for the Court, explained:

“An activity is integral and indispensable to the principal activities that an employee is employed to perform — and thus compensable under the FLSA — if it is an intrinsic element of those activities and one with which the employee cannot dispense if he is to perform his principal activities.”

First, the Court said, the screenings were not the principal activities the employees were employed to perform. The workers were employed to retrieve products from warehouse shelves and package them for shipment, not to undergo security screenings. Thus, the security screenings were not the employees’ principal activity. Nor were they “integral and indispensable” to those activities. Finally, the Court dismissed employees’ claim that the screenings are compensable because Integrity Staffing could have reduced the time spent undergoing screening to a de minimis amount as a matter to be “properly presented at the bargaining table, not to a court in an FLSA claim.”

…But California Law is Different

As usual, this is another area of the law where California holds itself to a higher standard than its federal counterpart. Under California law, the analysis does not turn on whether the activity at issue is a principal activity or is “integral and indispensable” to those activities. Rather, California law looks to whether the activity is deemed “hours worked.” Fifteen years ago, the California Supreme Court defined “hours worked…as the time during which an employee is subject to the control of an employer.” Using this analysis, the State High Court held that farmworkers had to be paid for time traveling by bus from a meeting point to the field even though they could read, sleep, or do other personal activities while on the bus. The case, Morillion v. Royal Packing Co. (2000), concluded that “an employee who is subject to an employer’s control does not have to be working during that time to be compensated” under state law. In so holding, the court considered and rejected giving deference to the FLSA and related case law, noting that the federal and state statutory schemes differ substantially and that state law may provide employees with greater protection than the FLSA.

In Cervantez v. Celestica Corp., plaintiffs argued and presented evidence to show they were under the control of their employer when they waited in line to pass through security and clock in before their shifts and clock out and pass through security after their shifts. Applying California law, the Central District of California found that faced with such evidence, the defendant employers couldn’t plausibly argue that the employees were not under their control during pre- and post-shift security screening periods.

How About Them Wildcats… or Sun Devils?

Arizona generally follows the FLSA except where the state imposes more stringent standards, such as the Arizona Minimum Wage Act. In fact, Arizona has several statutes affecting the employer-employee relationship, including wage-and-hour provisions in Title 23 of the Arizona Revised Statutes. ARS 23-250 defines “hours worked” to include “all time an employee is employed.” That’s quite broad. Also, “wages” is defined as “nondiscretionary compensation due an employee in return for labor or services rendered by an employee for which the employee has a reasonable expectation to be paid…” (Italics added.)

In other words, since employees are “employed” when waiting for and undergoing such security screenings, Arizona employers may be on the hook under state law if employees reasonably expect to be paid for such time. A well-written policy may effectively disabuse employees of that notion. But it’s instructive to know that attorney Mark Thierman, who brought the lawsuit against Integrity Staffing Solutions and argued the case before the Supreme Court, believes the state claims he still has pending against Amazon contractors under California and Arizona state law are still valid.

After Busk, many employers with union contracts and security screenings can expect the union to bargain for compensation for security screening time, per Justice Thomas’ admonition to plaintiffs to bring such matters to the bargaining table instead of court.

Finally, the Supreme Court distinguished the noncompensable security screening process from a long line of federal donning and doffing cases (i.e. putting on and taking off protective gear). Those cases satisfy the “integral and indispensable” standard and therefore those activities generally remain compensable time.

Tags: Agriculture, Farm Labor, Legal, Regulations
Posted in WG&S Magazine, February 2015 Issue | No Comments »

Listeria: Zero Tolerance or Low Levels?

February 1st, 2015

For several years, food items other than fresh produce have usually been associated with listeriosis outbreaks. According to the Centers for Disease Control and Prevention (CDC), listeriosis is an important public health problem in the United States. Listeriosis is an infection caused by Listeria monocytogenes (L.mono)—one of the two pathogenic species of Listeria, which may present in different ways and primarily affects older adults, pregnant women, newborns and adults with weakened immune systems (known as sensitive populations).

In the last few years, fresh-cut celery, cantaloupes, bean sprouts and caramel apples have been implicated in outbreaks and several other produce commodities have been recalled due to the detection of L.mono. The recognition that produce commodities may support L.mono, coupled with the knowledge that there is a difference between the detection of listeria and the amount of L.mono that must be present to cause an infection, has raised questions about the United States’ policy related to Listeria in produce.

Some countries such as Canada and Australia have a tolerance level of less than 100 CFU/g in ready-to-eat (RTE) foods that do not support L.mono growth; the United States has a “zero tolerance” for L.mono in RTE foods. A zero tolerance policy means absence of L.mono in 25 gram samples (i.e., less than 1 in 25 g, or less than 0.04 in 1 g), which is typically reported by microbiology laboratories as <1/25g or <0.04/g.

According to the U.S. Food and Drug Administration (FDA), this standard is currently in effect whether or not a food supports the growth of L.mono. In 2008, the FDA released draft guidance documents on Listeria for the industry and the FDA field staff that would have altered this zero tolerance approach, but these documents are still under review.

According to Dr. Robert Brackett with the Illinois Institute of Technology, the history of listeriosis in the United States is influencing Listeria policy in the produce sector. Current policies are based on past risk assessments, raising concerns about the growing demand for ready-to-eat foods by sensitive populations and the increased shelf life of many food items. The FDA is following a zero tolerance for L.mono and focusing efforts in enforcing Good Manufacturing Practices. However, the FDA staff is still having internal discussions about this approach and expects to provide greater detail about how industry can comply with the FDA policy on L.mono in foods once their guidance documents are finalized.

According to Dr. Martin Wiedmann with Cornell University, L.mono is a human pathogen that can cause very severe human conditions, but high numbers are required to do so. Listeria can be found in many environments and persists/survives for long periods of time, up to several years in some cases. Some organizations such as the Alliance for Listeriosis Prevention and the Institute of Food Technologists have suggested that the zero tolerance approach to dealing with the microorganism was a cautious enforcement policy based on the state of the science during the 1980s.

However, the regulatory community in the United States has not yet supported a regulatory limit for L.mono of 100 CFU/g in RTE foods that do not support the growth of the microorganism. While research conducted in 2003 by Chen et al. showed evidence that public health could actually be better served by a numeric limit rather than an effort to reduce prevalence, there are also concerns that there is not enough data to ensure that 100 CFU/g is protective of sensitive populations.

The debate continues…

In the meantime, L.mono presence is becoming a challenging issue for the produce sector and questions about a 100 CFU/g standard still remain. The FDA and CDC are more actively supporting surveillance efforts. The produce industry is proactive, and companies that may be at risk for listeria are adopting a “search and destroy” strategy for L.mono. Regardless of a “zero” tolerance or low levels for L.mono, just the presence and persistence of Listeria itself is an indicator of unsanitary conditions and particularly of conditions likely to harbor L.mono. Proactively controlling its presence is favorable for the industry, government and consumer.

The bottom line is that Listeria is not a good “house pet” as stated by many experts. For more information from the experts, please visit the WG website at www.wga.com to access a recorded webinar with Dr. Bob Brackett and Dr. Martin Weidman discussing the challenges and policies associated with Listeria monocytogenes and the implications for the produce industry.

Tags: Agriculture, Pathogens
Posted in WG&S Magazine, February 2015 Issue | No Comments »

Workers’ Compensation Rates Still Going Up? Do Something About It

February 1st, 2015

For the first time since 2006, the workers’ compensation insurance industry reached profitability. The National Council on Compensation Insurance recently announced that the industry last year had a “combined ratio” of 96 percent for 2014, which means that for every dollar the industry received in premium, it paid out 96 cents in claims and expenses; or it made four cents on each dollar of premium.

That is big news to all those selling and buying workers’ compensation insurance. For the past eight years this industry has struggled to make a profit as claims and expenses have outstripped premiums. Even double digit rate increases over that period were not large enough to produce profits. However, continued focus on reducing claims with increased premiums each year allowed most private workers’ compensation carriers to make a profit and stay in business. Challenges, however, continue as disability claims and medical costs continue to rise. In order to stay ahead of those trends, carriers continue to increase rates. Premiums are expected to grow 7 percent overall across the nation this year.

In California, the situation has been improving, as well. Commissioner Dave Jones of the Department of Insurance approved an average rate increase of 2.2 percent. This is across all job classifications. Some classifications may see lower rate increases and some see an actual rate decrease. Those job classifications with higher risk factors will probably see significant rate increases. The commissioner’s decision is primarily a guideline for the industry, so individual carriers can file for rate changes that reflect the actual experience they expect to have with their specific book of business. The bottom line is this: although the marketplace experience has improved, rate increases will probably continue to occur as insurance carriers try to recover from eight years of losses.

In Arizona, the workers’ compensation market continues to evolve. In 2013, the State Fund of Arizona was transformed into a private mutual insurance company, Copperpoint Insurance Company. It no longer is a division of the state, but has become an insurance company, like State Farm, which is effectively owned by its policyholders.

This created a dynamic shift in the market in Arizona. Previously, the State Fund had been very competitive and at one time insured almost 70 percent of the workers’ compensation market. Being a state-owned and supported company, it had the backing of the state in the event it ran into financial issues. Since it has changed to a mutual company, it no longer has the financial backing of the state. It must operate like every other insurance carrier and make a profit in order to survive. This has forced Copperpoint to be more selective in accepting risks and it is not as “rate competitive” as it once was. Many of its prior customers have secured coverage with other insurance companies and the market has become more competitive. Employers of jobs in high risk occupations dealing with cattle, horses and agriculture continue to struggle to find coverage. The good news is the market is slowly adapting to some of these recent changes.

In spite of increasing rates from insurance carriers, business owners who take a proactive approach to their workers’ compensation programs can have a positive impact on their premiums by avoiding losses and managing the claims that do occur. Companies that focus on safety training and good business practices will find more carriers willing to insure their businesses as well as offer lower premiums. Those companies will also experience fewer losses, and those losses will be less serious thereby costing less in claim dollars.

Managing workers’ compensation losses after they occur is also very important. Many companies spend very little time reviewing and analyzing their workers’ compensation losses because they feel it is the responsibility of the claims adjustor to handle claims. However, business owners can take a more proactive approach and significantly reduce the cost of the claims they do have by working effectively with their insurance broker and their carrier in getting claims closed quickly. Most business owners don’t realize that many carriers are very receptive to working with their insured clients to reduce the costs of claims. Work with your carrier!

Western Growers Insurance Services (WGIS) has worked effectively with many members on safety efforts and controlling claims so that losses are avoided and minimized. This results in fewer losses, smaller claims and reduced experience mods. This provides more competition from carriers with lower rates and better services. If you’d like WGIS to provide you with more information regarding its workers’ compensation programs, please contact me — Greg Nelson, WGIS assistant vice president of Commercial Lines — at 949-863-1000, or via email at [email protected].

Tags: Agriculture, Insurance
Posted in WG&S Magazine, February 2015 Issue | No Comments »

A Blast from the Past: Safeway is Taking Lead Role In Switch to 48 by 40 Pallet

February 1st, 2015

(Editor’s Note: This story begins a WG&S series that looks at some of the stories the magazine has covered in its 85 year history. Reprinted from the March 1985 issue of WG&S.)

Although they haven’t issued an ultimatum and they dislike the word pressure, Safeway officials are pushing some segments of the produce industry onto a standardized grocery pallet.

From President Peter Magowan to produce manager Rex Coffey, produce shippers are getting the word: “Palletize on the grocery pallet or you risk losing our business.”

Coffey said the company’s position could be summed up by saying that everything being equal, Safeway will buy its produce from suppliers who ship it on the standard pallet. Because of the size of customer that they are, they have convinced shippers of almost every commodity to comply and when one agrees, you can bet another shipper won’t be far behind.

“We think this makes a lot of sense for every level of distribution and for maximum productivity,” Coffey said. “We are smart enough to know that if this doesn’t benefit everybody, it will never fly.”

Coffey said the use of a standard pallet that ultimately can be reused and transferred from shipper to wholesaler to retailer and back again is a good idea. “We are serious about this and we are applying steady pressure, although I don’t like that word.”

He said that with commodities that have been slow to change, Safeway is trying to “work” with shippers to facilitate that change. A case in point, he said, is the stand that Safeway has made with respect to Imperial Valley lettuce shippers this season. The company basically said it will only buy palletized lettuce loads on 48 by 40 inch pallets. He said the company has questioned the need or wisdom of paying for palletized loads on a different size pallet when that pallet does not fit into the chain’s distribution scheme.

Coffey readily admits that Safeway used the Imperial Valley for launching this position because almost all of the winter lettuce comes from this area or contiguous districts. He said Safeway would be much less successful instituting such a program during the summer when 10 different districts produce iceberg lettuce.

But Coffey again resists calling the effort pressure. “We consider this part of the selling process.” He indicated that the customer tells the seller what he wants and if a particular seller can meet those standards, a sale will be made.

Though they don’t say it in so many words, Safeway officials are determined to pull the produce industry into standardization, kicking and screaming, if need be.

Tags: Agriculture, Efficiency
Posted in WG&S Magazine, February 2015 Issue | No Comments »

Enjoy a Heart (Shaped) Healthy Valentine’s Day

February 1st, 2015

By Sabrina Blair

Last month we discussed creating healthy goals for the new year and how to use a garden as means to expose your kids to fruits and vegetables.

How’s that going for you? Hopefully good, but we understand if there’s been some slip ups, especially with leftovers from the holiday season. However, another dangerous time of the year is upon us! Chocolate is everywhere this month so here are some tips to staying healthy in the midst of Valentine’s Day.

When all of the sweets come in heart-shaped boxes, why not shape up your fruits and vegetables as well? With the purchase of a heart-shaped cookie cutter, you can make just about anything look like a Valentine’s treat. We all know that our members grow the best medicine in the world, so grab some favorites such as grapefruit, kiwis, oranges or apples. Once you’ve got the fruit(s) you want, cut them into no bigger than ½ inch slices and then cut out heart-shaped sections for a festive kabob or even Cupid’s arrow. If that sounds like too much work for you, we suggest going the old-fashioned route and making some chocolate dipped strawberries.

Now for those of you missing the sweet tooth, there’s a way to make Valentine’s Day dinner fun and healthy. Everyone likes pizza, right? So make a pizza at home from scratch or with the help of pre-made pizza dough in the shape of a heart, dress it in marinara sauce (or your favorite sauce) and load it up with veggies.

No matter how you choose to celebrate the day of love, whether sweet or savory, we hope that you enjoy it with fresh fruits and vegetables!

Sabrina Blair is marketing coordinator at Western Growers and works closely with faculty and teachers to enhance the school garden program. She brings her past experience with social media marketing to further spread the word about the Foundation’s mission. Sabrina also helped implement CSGN Connect which is a social space for school garden supporters to interact with one another to share ideas as well as get advice and support.

Heart-Shaped Pizza Recipe

Ingredients:

Pizza dough

Sauce (marinara, olive oil or your favorite)

Toppings (tomatoes, baby spinach, green bell peppers, onions and mozzarella cheese)

Instructions:

If you’ve purchased pre-made pizza dough, follow the instructions on the package for preparation. Once the dough is prepared, mold it into a beautiful heart. You can also use a knife to cut it into a heart shape, if needed. Next, spread the sauce of your choice onto the dough with the back of a spoon to smooth it out. Now you get to add your favorite toppings. For our heart healthy pizza, we like using tomatoes, baby spinach, green bell peppers, onions and mozzarella cheese. Then place the pizza in the oven according to package instructions, bake until the crust is golden brown and enjoy!

Tags: Agriculture
Posted in WG&S Magazine, February 2015 Issue | No Comments »

WG Releases Report on Food Safety Research Findings

February 17th, 2015

Western Growers has released a new report summarizing important food safety research findings to help produce industry members understand relevant food safety research and how key findings apply to day-to-day operations.

The report, entitled “A Practical Guide to Scientific Research,” summarizes and interprets research presented at the fourth annual Center for Produce Safety (CPS) Research Symposium held June 26, 2013, at Wegman’s Conference Center in Rochester, New York. The guide is now posted online and discusses the 16 presentations, final reports for each project, prior research funded through CPS relevant to the current findings and considerations from the panel discussions.

CPS will hold its 5th Annual Produce Research Symposium this year on June 23-24 in Atlanta, Georgia.

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