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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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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