Fresh Direct - Controversy Over Unionization Vote

Controversy Over Unionization Vote

Employees at Fresh Direct have made several attempts to unionize. In 2004 and 2005, Teamster Locals ran two unsuccessful campaigns to organize Fresh Direct's 500 delivery workers. Following these failed campaigns, Local 348S of the United Food and Commercial Workers ran a successful organizing drive in 2006 and subsequently negotiated a contract for Fresh Direct's drivers. Although Anthony Fazio Jr., the UFCW local's secretary treasurer, said his union waged a tough fight to win recognition, some plant workers reported that company officials had openly encouraged workers to sign up with 348S. Local 348S has been accused by other unions of providing "sweetheart contracts" to businesses.

The contract negotiated for the drivers includes no minimum starting wage but has a maximum that caps the highest wages the company must pay at $12 to $18. Raises total $2.55 over the life of the 5-year contract.

In the summer of 2007, Local 805 of the International Brotherhood of Teamsters began signing up workers at Fresh Direct's warehouse in Long Island City. UFCW Local 348-S subsequently announced their intention to organize the warehouse workers. 348-S later filed for an election, which was held on December 22 and 23, 2007. Approximately 530 out of the warehouse's 900 employees voted in the election. Of those that participated, 426 workers voted against joining any union, 73 workers voted to join the Teamsters, and 31 workers voted to join UFCW 348-S.

The election, however was mired with controversy. Days before the election, FreshDirect released a memo to its employees asking them to verify their eligibility to work in the U.S., saying it was responding to an audit by federal immigration authorities. As a result, 100 to 300 employees were dismissed, suspended or quit just days before the vote was scheduled.

Union activists and some New York City elected officials have accused FreshDirect and the I.C.E. of intentionally creating an atmosphere of fear and intimidation. FreshDirect has publicly denied this accusation.