is your gourmet grocery a sweatshop?...resource center industry and data analysis provided by the...
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Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
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Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
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12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
11
12
Is yourGourmet Grocerya Sweatshop?
AReportonWorkingConditionsatUpscaleGroceriesinNewYorkCity
NewYorkJobsWithJustice50Broadway,24thFloor
NewYork,NY10004Tel.212–631–0886
www.nyjwj.org
QueensCollegeLaborResourceCenter25West43rdStreet,19thFloor
NewYork,NY10036Tel.212–827–0200
www.qc.edu/workered
AreportbyNewYork
JobswithJusticeand
QueensCollegeLabor
ResourceCenter
Industryanddataanalysis
providedbytheBrennanCenter
forJusticeatNYUSchoolofLaw
“It’s getting harder and harder to make ends meet. I work 40 to 50 hours a week. But I still can’t afford health care. I left many things in my country to come here. I came to work hard. To get an education. To make a better life. But that just seems impos-sible now.” – Sergio Moncon, Gourmet Grocery Worker
AllacrossManhattan,moreandmoregourmetgrocerystoresareopeningup.
They cater to upscale customers looking for quality foods – imported cheese,
organicvegetablesandfreshfruits. Indeed,shoppinginthesestorescanbea
wonderfulreprievefromthehecticliveswealllead.
But caring about our community means caring about the workers who help
keepitrunningeveryday.Thetruthaboutworkingconditionsisoftenhidden
fromthepublic’sview.
Wagesareatpovertylevels.Theworkislongandstrenuous.Healthinsuranceis
non-existentorunaffordable.Andmanagersareregularlyabusive.
Infact,it’softenthestoreswiththehighestpricesandmostexpensivefoodsthat
paytheirworkerstheleast.
Butitdoesn’thavetobethisway.Manybusinessestakethehighroad,providing
goodjobsandstillmakinggoodprofits.
Asresidents,communityleadersandpeopleoffaith,wecanholdtheownersof
these gourmet grocery stores accountable. We can call on them to act with
integrity–creategoodjobswithfairpayandjusttreatmentoftheirworkers.
Gourmet Grocers withSweatshop Conditions are RisingNewYorkCity’sfoodretailindustryisbooming.Andwithmorethan57,000workers,it’sa
vitalpartofthecity’seconomy.
•Between1990and2000,employmentintheprivatesectoroverallroseby5%.Butgrowthin
foodstoreswasevenstronger,at7%.Andgourmetgrocerystoresgrewthefastestofall,
morethandoublingoverthistimeperiod.(SeeFigure1.)
•Butmanygrocerystoreownerstakethelowroadandofferonlybadjobs.
•Fortheprivatesectorasawhole,averageannualearningsgrewby35%between1990and
2000adjustingforinflation.
•Butinthefoodstoreindustry,averageannualearningsactuallydeclinedby9%overthis
sametimeperiod.
•Cashiers,stockingclerks,foodpreparers,janitors–thesehardworkingpeoplearethe
backboneoftheindustry.Yetthesejobspaypovertywages,offerfewifanybenefits,and
oftenentaillonghoursanddifficultworkingconditions.
“I have been working 50 hours a week, but at $7 an hour, I have trouble paying rent and putting food on the table for my family.” – Anonymous Gourmet Grocery Worker
Thefollowinginformationisbasedonasurveyofover100workersingourmetgrocerystores
inChelseaandtheWestVillage.
Povertywages,andnopayincreases:Theaveragereportedwagewasjust$7.50perhour,
andcashiersstartedat$6.50perhour–that’s$13,000ayearworkingfull-time.Thehighest
wagewas$9.00perhour.Atmanyofthestores,workersdidnotreceiveannualpayincreases.
Fewbenefits,ifany:Onlyafewstoresofferedhealthbenefits.Andinthefewcaseswhere
healthinsurancewasoffered,thebenefitsweretooexpensive,workershadtobefull-time,and
hadtowait10-12monthstobecomeeligible.
Longhoursandnoover-timepay:Full-timeworkersoftenhadtoworkupto60hoursper
week–withnoovertimepay,aviolationofstateandfederalwageslaws.Atthesametime,
manypart-timeworkerswantedmorehoursbutcouldn’tgetthem.
Discrimination:Women,undocumentedimmigrants,andworkerswithlimitedEnglish
proficiencyearnedtheleastandhadtoworkthehardest.
Littleupwardmobility:Mostofthestoreshiredtheirmanagersfromtheoutside,ratherthan
promotingfromwithin.Asaresult,entry-levelworkerswerelargelyblackorLatino,whilemost
managerswerewhite.
Abusiveworkingconditions:Breakswereshortandinfrequent.Almostnostoreallowedsick
days.Sexualharassment,verbalabuseandthreatswerefrequent,especiallyagainstimmigrant
Working Conditions in Gourmet Grocery Stores
“I was a dedicated employee for more than ten years. I arrived early and worked late regularly hoping to be considered for a promotion to management. That day never came. And over 14 years of work, my salary increased a mere $3.50.” – José Luis, Former Gourmet Grocery Worker-10
-5
0
5
10
15
20
25
30
35
Employment AverageAnnualEarnings
Per
cen
tag
eC
han
ge
Figure1.ChangeinEmploymentandEarningsinNewYorkCity1990–2000
5% 7%
1
35%
-9%
FoodStores
PrivateSectorOverall
Living on Poverty WagesWorkersinthisindustryaren’tyoungkidslookingtoearnextraspendingcash.
•Themajorityareadults(77%areage25andover),tryingtosupporttheirfamilies.
•Mostworkfull-time(74%)anddependonthesejobsfortheirlivelihood.
•Manyareimmigrants(63%)whohavecometothiscountrytobuildabetterlife.
•Themajorityhavefinishedhighschool(71%).
Groceryworkersgetupeverymorning,gototheirjob,workveryhardforlonghours,andpay
theirtaxes.But$6.00to$8.00anhourisn’tnearlyenoughtosupportafamily.Theseworkers
aremakingbelowtheofficialfederalpovertyline.
You pay. Employers ride free.Badjobsdon’tjusthurtworkers,theyalso
hurtoureconomyasawhole.That’sbecause
taxpayersfootthebillwhenemployersdon’t
paytheirworkersenoughtosurvive.
Consideracashierwhosupportsafamilyof
fourandearns$6.60anhour.Atthispoverty
wage,shequalifiesforpublicassistance,food
stamps,Medicaid,FamilyHealthPlusand
Housingsubsidy–allofwhicharepaidfor
withpublicdollars.
Thisaddsup.Arecentreportestimatesthat
in2002,about$1.1billioninpublicbenefits
wasspentonlow-wageretailworkersin
NewYorkCity.
Thesesafetynetprogramsshouldgoto
thosewhoneedthemthemost.Profitable
employersshouldpayfamily-supporting
wages,notforcethepublictopickup
thetab.
Table1:WhatdoesitcosttoliveinNewYorkCity?
$22.00–$35.00perhour
Self-SufficiencyWage(Forasingleearnerwithtwoyoungchildrenintheouterboroughs.)
The“selfsufficiencystandard”measureshowmuchincomeafamilyrequiresinordertomeetbasicneedssuchasfood,housingandchildcare.Thewageiscalculatedfordifferentfamilytypesandregionsbasedonarealisticassessmentofthecostsofliving.Intheouterboroughs,theself-sufficiencywageforasinglewageearnerwithyoungchildrenis$20–$24perhour.InlowerManhattan,it’s$35.15perhour.
$20.63perhour HousingWage(Forasingleearnerrentingatwobedroomapartmentatmarketprice.)
The“housingwage”estimatesthelivablewageforNYCbasedontheaveragecostsofrentinganapartmentontheopenmarket.Assumingthathousingcostsshouldaccountfornomorethanathirdofafamily’sbudget,the“housingwage”requiredforasingleearnertoaffordatwobedroomapartmentinNYCis$20.63perhour.
$9.76perhour
$8.84perhour
FoodStampWage(Forasingleearnersupportingtwoyoungchildren.)
Afamilyofthreequalifiesforfoodstampsiftheirhouseholdincomeis$19,536peryear,or$9.76perhouraftertaxes.
PovertyWage(Forasingleearnersupportingafamilyoffour.)
Thefederalpovertylineissetat$18,400annuallyforafamilyoffour,or$8.84perhourforasingleearner.
“You shall not abuse a needy and destitute laborer, whether a fellow countryman or a stranger in one of the communities of your land.” – Deuteronomy 24:14
Table2:Thehighpricesofgourmetgrocers
AtypicalshoppingexcursioninUnionSquare
Item CostatGourmetGrocerCostatNormalSupermarket
OrganicEggs
OneGallonOrangeJuice
1lb.ColdCuts
Helman’sMayonnaise
Hummus
Tunafish
CanofBeans
CanofSoup
Macn’Cheese
Cheese-averageperlb.
5lbs.sugar
$4.00
$2.99
$8.99
$3.65
$3.95
$1.65
$1.65
$2.95
$1.99
$9.00
$3.95
$2.19
$2.43
$6.67
$2.61
$3.49
$1.11
$.79
$2.45
$1.45
$6.00
$3.39
Total $45.00$32.58
2
3
These businesses can afford to do the right thingBypayingpovertywagesandsweatingtheir
workers,gourmetgrocersfosteraracetothe
bottominNewYorkCity.Andyet,allthe
evidenceindicatesthattheycanchoosea
differentpath.Considerthefollowing:
Gourmetgrocersaremakingplenty
ofmoney.
Heftymark-upsonfancymeats,produce,and
preparedfoodsgivesgourmetgrocersthe
highestprofitmarginsintheindustry.Infact,
gourmetsupermarkets(includingsmallones)
aretwiceasprofitableasconventional
supermarkets.
Whensurveyedabouttheirprofitmargins,
gourmetgrocersreported56%largergross
profitmarginsintheirproducedepartments,
29%higherindelidepartmentsand25%
higherinmeatdepartmentsthanconven-
tionalgrocers.
AndthisholdstrueinNewYorkCity.Table2
showsthatevenforthesameproducts,
gourmetgrocerschargemorethanatypical
upscalesupermarketinthearea–pricescan
beasmuchas38%higher.
Gourmetgrocersareoneofthefastest
growingpartsofthefoodindustry.
Salesoforganicandnaturalfoodshavegrown
bymorethan20%ayearinthepastfiveyears.
Infact,inlargecitiesandnearbysuburbs
salesofnaturalfoodsaregrowingatabout
threetimestherateofconventionalfood.
OtherfoodstoresinNewYorkCityareliving
proofthatitispossibletopaydecentwages,
providebenefits,havegoodworkingcondi-
tions,andstillbecompetitive.
Forexample,responsibleemployerslike
Fairway,D’AgostinosandPathmarkoffertheir
workersqualityjobs,andarestillprofitable.
Inthesestores,thetypicalworkerearns
around$11perhour,withqualityhealth
benefitsandjobsecurity.Justasimportant,
thesestorestreatworkerswithrespectand
offercareerladderstobetterjobs.
Investinginabetter-paidworkforcepays
offinincreasedsalesandprofits.
Foodretailhassomeofthehighestturnover
inoureconomy–averagingaround100%
eachyear.Butexperienceintheindustry
showsthatbettercompensationleadsto
lowerturnover,betterservice,andhigher
productivity.Infact,specialtyfoodstores
considerqualityservicetheirgreatest
competitiveadvantage.
Thebottomline?Gourmetgrocerscanpay
livablewagesandsolidbenefitsandremain
strongandprofitable.
It’ssimplyamatterofchoice.
Gotham Unequal?Thechoiceswemakeaboutthejob
standardsinourcommunitywillshapethe
futureofNewYorkCity.Infact,theexploita-
tionofgourmetgroceryworkersreflectsa
disturbingtrendevidentacrossourcity.
Overthepasttwodecades,thecityhasseen
alarminggrowthineconomicinequality–
resultinginanhourglasseconomywith
growingnumbersoflow-wageservicejobs
atthebottom,aclusterofhigh-wage
professionaljobsatthetop,andfewmiddle-
classjobsinbetween.
-30
-20
-10
0
10
20
30
40
50
-29%
-9%
1%
12%
50%
Per
cen
tag
eC
han
ge
PoorestFifth
SecondPoorest
Fifth
MiddleFifth
NextRichest
Fifth
RichestFifth
Considerthefollowing:
Betweenthelate1970sandthelate1990s,
NewYorkCitysawastaggeringincreasein
incomeinequality.Figure2showsthatthe
poorestfifthoffamiliessawtheirincomes
actuallydeclineby29%,whiletherichest
fifthsawtheirincomesincreaseby50%,
adjustingforinflation.
Theresultisthatbythelate1990s,average
familyincomeforthepoorestfifthwas
$7,774ayear.Fortherichestfifth,itwas
$155,485ayear.
continuedonnextpage
4
5
6
7
8
9
Figure2:ChangeinAverageFamilyIncomeinNewYorkCity fromthelate1970’stothelate1990’s
“Men shall have the benefit of what they earn, and womenshall have the benefit of what they earn.” – Holy Qur’an 4:32
(Gotham Unequal? con’t.)
Fully28%offamilieswithyoungchildreninNewYorkCitywerelivingbelowthefederal
povertylinein1999.
Unfortunately,thispolarizationisevenmoreacuteinparticularneighborhoods:
In1999,medianfamilyincomeinChelseaandUnionSquarewas$84,368peryear.IntheWest
Village,itwas$114,236.That’sthreetimesthecitymedianof$38,000.Andit’sevenhigher
thanthemedianof$29,226inWashingtonHeights,aneighborhoodwheremanygourmet
groceryworkerslive.
In1999,theaveragepersoninChelseaandtheWestVillagespent$2,711ongroceriesevery
year.That’ssignificantlyhigherthantheaverageforthecityasawhole,andis50%higherthan
theaverageforWashingtonHeights($1,753perpersonperyear).
Ifweleavethingsastheyare,inequalitywillcontinuetogrowinourcityandourneighbor-
hood.Thegoodnewsisthatthere’ssomethingwecandorightnow.
You can help!Let’ssafeguardtherightsofworkersandkeeptheAmericanDreamalive.
Raisethisissuewithyourlocalcommunityorneighborhoodorganization,
inyourchurch,synagogueormosqueandwithyourgovernment
representatives.
Askifyourlocalgroceryownerprovidesqualityandaffordablehealthcare
totheiremployees.
ChecktoseeifyourneighborhoodgreengrocerhassignedontotheNew
YorkStateAttorneyGeneral’sGreenGrocerCodeofConduct
(www.oag.state.ny.us)
SignupwithJobswithJusticetosupportthestrugglefordignityandjustice
forgourmetgroceryworkers.Contactusat212–631–0886.
Sources for tables and figures:IndustryanddataanalysisprovidedbytheBrennanCenterforJusticeatNYUSchoolofLaw.
Figure1:NewYorkStateDepartmentofLabor,2004.EmploymentandWages,NewYorkStateandCounties,1975-2000(ES202series).Accessedon-lineinMarch2004athttp://www.labor.state.ny.us/labor_market/lmi_business/employ/hist202.htm
Figure2:EconomicPolicyInstituteandtheCenteronBudgetandPolicyPriorities,2000.PullingApart:AState-by-StateAnalysisofIncomeTrends.Washington,DC:CenteronBudgetandPolicyPriorities.DatashownfromspecialanalysisforNewYorkCityPSMA,conductedbytheEconomicPolicyInstituteandCenteronBudgetandPolicyPriorities.Availableon-lineathttp://www.fiscalpolicy.org/data_01.stm.
Table1:SourceforSelfSufficiencyWage:Pearce,DianawithJenniferBrooks,2000.TheSelfSufficiencyStandardfortheCityofNewYork.NewYork,NY:Women’sCenterforEducationandCareerAdvancement;SourceforHousingWage:NationalLowIncomeHousingCoalition,2003.OutofReach2003:America’sHousingWageClimbs.NewYork,NY.Availableonlineathttp://www.nlihc.org/oor2003/data.php?getmsa=on&msa%5B%5D=newyork&state%5B%5D=NY;SourceforFoodStampWage:Wenzler,DianewiththePublicBenefitsResourceCenter,2003.“FoodStamps.”NewYork,NY:CommunityServiceSociety.SourceforPovertyWages:“2004HealthandHumanServicesPovertyGuidelines.”FederalRegister,13February,2004,Vol.69,No.30,pp.7336-7338.
Table2:ShoppinglistcomparisonconductedbystaffoftheBrennanCenterforJustice,December2003,atagourmetgrocerandhigh-endsupermarketintheUnionSquarearea.Asmuchaspossible,identicalitemswerepriced.
Endnotes1Surveyconductedoverathree-weekperiodinJuly,2003.SurveytargetswereretailstoresintheChelsea,GramercyPark,andGreenwichVillageareas.Over100employeesofgourmetgrocersweresurveyed.Manyofthosesurveyedwerecashiersandstockers,thoughasignificantnumberworkedinspecialtydepartmentspreparingorsellinggourmetseafood,bread,cheese,andotherfoods.
2AnalysisofCensus2000dataconductedbytheBrennanCenterforJustice.Thesampleisworkersaged18-64,whoworkedmorethan0hoursinthepastyearinthe“foodstore”industryinNewYorkCity.
3MosheAdler.2003.“UnionizationandPoverty:TheCaseofNewYorkCityRetailWorkers.”WorkingPaperNo.127.Washington,DC:EconomicPolicyInstitute.
4NationalGrocersAssociationwithFinancialManagementSolutions,2003.PointsofImpact:NGARetailOperationsSurvey2002-2003.Surveyof685foodretailers.Availableonlineat:http://www.nationalgrocers.org/nga.art/FinSur2003-Mar.PDF.
5Neuborne,Ellen,“FoodStoresGoUpscale:GourmetTrendFeastsonFoodVariety,Safety.”USAToday,20April,1996,pg.01.B.
6BarryJanoff,“NaturalResources.”ProgressiveGrocer,March2000,V.79,Issue3,pg.101-107.
7MarianBurros,“NaturalFoodisBig,andSometimesEvenNatural.”NewYorkTimes,27June,2001,Sec.F.
8Dyer,Leigh,“RetailersContinuetoDealwithHighTurnover.”KnightRidderTribuneBusinessNews,5April,2002,p.1.
9BasedonBarryJanoff,op.cit.andNationalGrocersAssociation“SpecialtyFoodsSurvey2003.”Surveyof140specialtyfoodsretailersacrosstheU.S.,compiledbyDakotaWorldwideCorporation.Availableonline:http://www.nationalgrocers.org/nga.art/NGASpecialtyFoods.pdf.
10Source:U.S.CensusBureau,Census2000SummaryFile3,MatricesP90,P91,P92,P93,PCT59,PCT60,andPCT61.
11Source:U.S.CensusBureau,Census2000,MedianIncomeforNewYorkCityin1999.Accessedthroughwww.infoshare.org,April2004.
12Source:ClaritasE-ConnectConsumerExpenditureDatafor“FoodatHome,”2003.Accessedthroughhttp://www.clusterbigip1.claritas.com/eConnect2/welcome.jsp,April2004.
10
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12