Monday, June 12, 2006

UNION WORKERS STRUGGLING TO SAVE JOBS IN NAPA

Protests at Charles Krug Winery -- owned and operated by the Mondavi clan – are still going strong after the company announced that 36 workers would lose their jobs on June 1.

Protestors are asking for a new labor contract for the 25 employees belonging to the United Farm Workers of America (UFW) after their former contract expired this past December.

However, Charles Krug’s CFO Tom Fossey said starting July 1, the winery plans to replace unionized workers with a vineyard manager who will bring his own work crew that often includes viticulturists and pest control specialists. Relying on a vineyard manager to provide workers has been a growing trend in Napa Valley and Sonoma County in recent years.

The UFW has threatened to launch a national boycott of all Charles Krug and Charles Krug Reserve products on June 15 if Charles Krug doesn’t continue negotiations with the UFW within the next two weeks. A similar boycott took place last summer with Gallo wines which eventually pushed the Sonoma winery to give-in to the Union’s demands.

Charles Krug does not plan to change its decision although “obviously concerned” about such a boycott. However, they are open to negotiating a possible severance pay to union employees.