Bashas’ grocery stores took to the offensive Dec. 18 with the filing of a defamation lawsuit against labor unions, local Latino activists, and other agents it accuses of deliberately smearing the stores’ reputation.
In front of gawking shoppers and a row of television cameras, Bashas’ president Mike Proulx accused the United Food Commercial Workers and its Local 99 affiliate of using “strong arm tactics” and “ugly lies” in attempt to unionize Bashas’ employees.
But union leaders fired back later in the week, saying it’s a case of a big company using its financial position to intimidate the labor community.
The lawsuit stems from an effort by the Hungry for Respect coalition, a union-financed campaign that began in July. The group accused Bashas’ of selling hundreds of cans of expired baby food formula to coalition members.
Bashas’ management maintains the Hungry for Respect operation is a “sham” front for the union engaged in a smear campaign against the supermarket for its refusal to enter direct management-to-union negotiations that would have effectively forced employees to become union members without their vote.
“We are here today to defend ourselves from the UFCW’s ruthless attack on our company,” Proulx said. “The UFCW’s efforts to force us out of business or to sign an agreement that would take away our employees’ right to vote in a secret ballot election has got to stop.”
The suit, filed by attorney Michael Manning, names a multitude of defendants and businesses it accuses of launching a coordinated public relations campaign to destroy the grocer’s business after attempts to unionize Bashas’-owned Food City work force failed in 2001.
The Bashas’ lawsuit aims to “terminate the malicious, extortionate campaign that has been waged against it” and seeks to “recover the substantial amount of damages that Bashas’ has sustained.”
Former state senator and Hispanic activist Alfredo Gutierrez is accused in the court filing of accepting more than $20,000 a month from the union to assist the campaign.
It is alleged he used his la Campesina radio show to broadcast false and misleading statements that Bashas’ is hostile to the immigrant community and maintains filthy stores that will sicken their children.
The radio station, its California owners and Phoenix City Councilman-elect Michael Nowakowski, the station’s manager, are also named as defendants in the suit. The international UFCW and its president are included, as are community activist Trina Zelle, and Hector Yturralde, president of Somos America.
UFCW Local 99 President James McLaughlin said Gutierrez has not been paid by the union, but the Hungry for Respect coalition has paid him for his consulting services.
McLaughlin denied the lawsuit’s allegations that coalition and union members “planted” expired baby food and hid perishable foods throughout stores, distributed misleading mailers, and engaged in phony polling designed to scare customers away from Bashas’.
McLaughlin stood by mailers describing health infractions at the supermarkets as being truthful and defended other actions as legitimate grassroots activity to support workers and encourage the supermarkets to “live up to the expectations” typical of corporate, “community partners.”
“This company, a billion-dollar company, is using lawsuits to threaten and intimidate community people and leaders,” he said. “They’re not going to be successful at that. Coming after a few of us isn’t going to stop the voices out there in the community.”
Gutierrez, also of Tequida & Gutierrez consulting firm, denies that he was paid by the UFCW Local 99 to help the campaign against Bashas’ and Food City. He said that he has railed against Food City and promoted union causes for years.
“I’m on a very highly rated talk show and I’m critical of Pruitt’s (furniture store in Phoenix involved in immigration-related debate) and Food City and a variety of companies,” he said, declining to comment further on the allegations against him. “I’m highly opinionated and I think the whole world knows that.”
Manning said he hopes the suit will result in the producing of bank records to prove the union is paying members of the Hungry for Respect coalition. The suit seeks a court ruling that would force the group to stop its practices and to award damages to Bashas’, he said.
Bashas’ employs more than 14,000 employees, a figure roughly equaled by the number of UFCW Local 99 members that are employed by Safeway and Fry’s supermarkets in Arizona.