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Column: Inside the effort by two Beverly Hills billionaires to kill a state law protecting farmworkers

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Column: Inside the effort by two Beverly Hills billionaires to kill a state law protecting farmworkers

Los Angeles-based Wonderful Co. — the world’s largest pistachio and almond grower, the purveyor of Fiji Water, Pom pomegranate juice and Justin wines, and owner of the Teleflora flower service — wants you to know that it’s committed to “sustainable farming and business practices” and sees its employees as “a guiding force for good.”

Wonderful’s owners, the Beverly Hills billionaires Lynda and Stewart Resnick, say their “calling” is “to leave people and the planet better than we found them.”

Here’s another side of the company. Since February, it has been engaged in a ferocious battle with the United Farm Workers over the UFW’s campaign to unionize more than 600 Wonderful Nurseries workers in the Central Valley.

‘We ask each of you firmly not to sign an authorization card.’

— Anti-union script read to Wonderful Nursery workers by company officials

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Having lost a series of motions before the California Agricultural Labor Relations Board to delay a mandate that it reach a contract with the UFW as soon as June 3 or have terms imposed by the board, Wonderful on Monday unleashed a nuclear attack: a lawsuit seeking to have the 2022 and 2023 state laws governing the unionization process declared unconstitutional.

If it succeeds, California’s legal protections for farmworkers could be rolled back to conditions that prevailed before César Chavez’s campaigns for farm unionization in the 1960s.

“This is an attack on farmworkers’ rights,” says Elizabeth Strater, the UFW’s director of strategic campaigns. Farm employers “will do everything they can to prevent workers from empowering themselves and lifting themselves out of poverty.”

The company disputes the claim and says its relationship with agricultural workers “is rooted in mutual trust, collaboration and respect,” in the words of Wonderful Nurseries President Rob Yraceburu.

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Wonderful’s lawsuit takes a page from arguments made against the National Labor Relations Board by Trader Joe’s and Elon Musk’s SpaceX. Both companies, facing NLRB regulatory actions, are contending that the NLRB, which Congress established in 1935, is unconstitutional.

Wonderful contends that provisions of the state’s agricultural labor code violate its rights of due process guaranteed by both the state and U.S. constitutions.

At issue is a UFW drive to represent more than 600 Wonderful Nurseries employees that began in early 2023. The UFW ultimately presented the labor board with signed cards from more than half the employees giving the UFW authority to represent them in collective bargaining on a contract, a process known as a “card check.”

The board certified the union as the workers’ representative on March 1, triggering a tight deadline aimed at prompting the union and the company to reach a contract.

As often happens in hard-fought union campaigns, this one has generated a cross fire of allegations of unfair labor practices from both sides — the company asserting that the union defrauded workers into signing the representation cards, the union asserting that the company browbeat more than 100 workers into revoking their authorizations to drive the approval rate below the required 50%.

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Accounts from the workers themselves vary. As my colleagues Rebecca Plevin and Melissa Gomez have reported, there have been complaints about poor working conditions at Wonderful along with hope that a union would help upgrade standards. Other workers say they misunderstood that signing an authorization card was tantamount to joining the UFW.

Some workers said they had second thoughts about signing the cards after meetings with a company-hired union-buster, Raul Calvo, who told them the union would take 3% of their pay for dues. In late March, some 100 Wonderful workers staged an anti-union protest at the ALRB offices in Visalia, but the UFW has alleged that the rally was the product of company coercion. Wonderful said at the time that it had no involvement in the protest and didn’t pay the workers for their time.

“These workers are so vulnerable,” the UFW’s Strater says. Many are undocumented or have other reasons to worry about job security, arguably making them receptive to management directives.

In this case, another party has weighed in — the Agricultural Labor Relations Board, an independent state agency. After an investigation, the board’s general counsel, Julia Montgomery, alleged that Wonderful trampled its workers’ unionization rights through numerous anti-union actions, including coercing them to submit declarations rescinding their authorizations. Wonderful has denied most of the allegations.

Wonderful says that the workers submitted their declarations — nearly 150 of them — voluntarily, “without any request having been made” by the company. Montgomery’s allegations, however, are mighty specific. She cites a series of meetings that were overtly aimed at persuading the workers to back away from the union.

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That process began with employee meetings addressed by Calvo and proceeded to sessions in which workers met with Wonderful human resources personnel, Montgomery alleged. At those meetings, the company representatives read from a Spanish-language script stating that the union could have obtained workers’ signatures without their knowledge, that they would be deprived of the opportunity for a secret vote on unionization and encouraging them to sign a declaration revoking their authorization cards.

“We ask each of you firmly not to sign an authorization card,” the script read. In a line that sounds as if it came fresh out of the playbook of anti-union companies such as Starbucks, the script stated that the company wants “to be able to work one on one with you without the interference of a union.”

Some workers were led into a large conference room, where company representatives were assigned “to help the worker draft the declaration” revoking the authorization cards, Montgomery asserted. Some agents typed up declarations for the workers and handed them to the workers to sign.

A few words about the plaintiffs in this lawsuit:

The Resnicks are prominent philanthropists and political donors (mostly to Democrats). Their companies’ effects on the environment and California agriculture generally are checkered. Indeed, their most eye-catching charitable donation, a record-breaking $750-million pledge to Caltech in 2019 for research into climate change and “environmental sustainability,” isn’t inconsistent with a desire to “greenwash” some of their other activities.

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As I previously wrote, while it might be churlish to suggest that the gift was devoid of genuine altruistic impulses, it would be naive to assume that altruism is the whole story.

A few years earlier, the Resnicks’ Justin Vineyards had been caught clear-cutting an oak forest near Paso Robles to make room for new grape plantings. The work was halted by San Luis Obispo County authorities, and the firm eventually agreed to donate the 380-acre parcel to a land conservancy.

Although the Resnicks say they are “dedicated to our role as environmental stewards,” their Fiji Water subsidiary looks like the antithesis of environmental sustainability. It profits from transporting water in plastic bottles more than 5,500 miles from the island nation to California and beyond, places that already have abundant water.

Wonderful’s pistachio and almond orchards have complicated efforts to apportion water among the state’s competing stakeholders. Because the trees require watering in wet years or dry, their acreage can’t be fallowed during dry spells.

That has made the water demand of the agricultural sector less flexible, and arguably has contributed to the devastating decline of the state’s salmon fishery and the drying out of rivers and streams that once supported a diverse population of fish and birds.

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This isn’t the first time that the Resnicks have wrapped themselves in the U.S. Constitution to fend off a regulatory agency. In 2010, they asserted that the Federal Trade Commission infringed their 1st Amendment rights by holding that they made “false and misleading” and “unsubstantiated” representations about the health benefits of their Pom pomegranate juice, which amounted to unlawful marketing.

The company pitched the juice as “health in a bottle.” Wonderful put up billboards with the words “Cheat Death” next to a picture of the bottle. Its ads claimed Pom has beneficial effects on prostate cancer (“Drink to prostate health”), cardiovascular health and even erectile dysfunction — all of which claims were judged scientifically dubious by regulators. The company fought the FTC up to the U.S. Supreme Court, which rejected its appeal.

The 2022 and 2023 laws that Wonderful is challenging — indeed, the very creation of the ALRB in 1975 — reflect a reality known in California for more than a century: Bringing labor rights to farmworkers is notoriously difficult.

The first major farm union organizing drive in the state, among hops pickers in Wheatland, north of Sacramento, was broken up by four companies of the National Guard called out by Gov. Hiram Johnson in 1913. A statewide dragnet for organizers from the Industrial Workers of the World, or Wobblies, ensued, followed by hundreds of arrests. No further significant farm organizing took place for 16 years.

In 1975, a state law passed at the urging of César Chavez’s UFW gave union organizers the right to meet with workers on the farms where they toiled. But the Supreme Court, voting on partisan lines, struck it down in 2021—the law allowed organizers to “invade the growers’ property,” as Chief Justice John G. Roberts Jr. wrote.

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To address the heightened difficulty agricultural unions faced, the state Legislature established the card check process in 2022 and 2023. The laws incorporated a tight timeline governing certification and contract bargaining, and stipulated mandatory mediation if no contract is reached with a set period.

The goal was to address “the basic failing of labor law both at the federal and state level, which is delay,” said William B. Gould IV, professor emeritus of law at Stanford and a former chairman of the National Labor Relations Board and the state Agricultural Labor Relations Board.

“Delay works against the interests of workers and unions, because employers hope that they’ll grow weary,” Gould told me. The tight deadlines were designed to place the burden of delay on the employers.

Wonderful maintains in its lawsuit, filed in Kern County state court, that the accelerated process has deprived employers of constitutionally protected due process rights by allowing a union to be certified by card check before the employers have a chance to object — effectively rendering the certification and the negotiating deadline faits accomplis.

That’s not quite true, however. The law allows anyone to file objections within five days of certification. After that, any certification can be revoked if the employers’ objections are later upheld at a hearing, and any mandated contract can be invalidated. Indeed, Wonderful filed its objections in time, citing the workers’ declarations; an ALRB hearing on its objections has been underway for weeks.

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What appears especially to irk Wonderful is that the board has twice rejected its motions to suspend, or stay, the certification and negotiation procedure until after it rules on the company’s objections. The board responded that the law doesn’t provide for such a stay.

The company’s lawsuit thus amounts to an end run around the law. Gould is skeptical that Wonderful’s constitutionality claims will win much favor from California judges, but the case may be aimed at the notoriously anti-union U.S. Supreme Court majority.

“This Supreme Court has indicated that they want to reverse much of what was done in the 1930s,” a high-water mark for progressive labor and public interest laws, he said. In its lawsuit, Wonderful “has thrown buckets of paint against the wall in the hope that something will stick. Maybe they’ll be right on some of it.”

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The Homesteading Mother of 6 Taking On Big Tech

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The Homesteading Mother of 6 Taking On Big Tech

Everyone will know more, he told me, when Quantica signs a contract with a tech company to use the facility. That announcement could come by the end of the year.

Besides, Mr. Peterson said, much of the apprehension over the data center comes from people who are afraid of A.I. more broadly, as if “Big Brother is going to take over,” he said.

Those people, he added, “have no role in this conversation.”

What Mr. Peterson could tell me now, he said, was that the project would have minimal impact on the land and the people who live nearby. And residents wouldn’t have to pay a thing for it. He offered no guarantees, but said the project would bring its own power — at least some of it from solar and natural gas.

Despite what opponents have been saying, and despite the information gleaned from data centers around the world, Mr. Peterson said the Broadview site would need “not that terribly much” water.

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It will bring jobs, he said. Thousands of temporary workers could descend on Broadview for the construction. The number of permanent jobs would be 30, 40, 100 — he doesn’t know for sure. But he described them as good-paying jobs that would not require specialized training or a college education. Jobs like janitors, maintenance workers or security guards.

He likened it to “being a miner, but not having to grab a drill.” Generations of families could stay in Broadview because people would not have to move to make a living, as many are doing now. They could say, “Oh my gosh, I could push a broom and come home to my home in Lavina that I love — and my kids can do that?”

For anyone who doesn’t like the idea of living next to a data center, he added, “there’s probably a county up the road that doesn’t have one.”

He said the eventual deal would include a “community benefits package,” which could help Broadview pay for things like its problematic wastewater lagoon. The Montana Department of Environmental Quality issued the town a violation in March for longstanding issues at the site, demanding compliance. Remediation could cost millions.

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Can Disney recapture the Force with ‘The Mandalorian and Grogu’?

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Can Disney recapture the Force with ‘The Mandalorian and Grogu’?

After a 6½-year hiatus from theaters, “Star Wars” returns to the big screen this weekend with “The Mandalorian and Grogu.”

This time around, however, the franchise faces a much different universe than it did in 2019 when the last film came out. For one, theatrical attendance has fallen dramatically since “Star Wars: Episode IX — The Rise of Skywalker” grossed more than $1 billion worldwide in the pre-pandemic days.

Then, there’s Walt Disney Co.-owned Lucasfilm’s own trajectory. In the last few years, new “Star Wars” stories have come only via streaming series on Disney+. And since the service debuted in 2019, the San Francisco-based studio pumped out 13 shows, including “The Mandalorian,” which inspired the film, though others received mixed reviews.

Lucasfilm is also under new leadership, as veterans Dave Filoni and Lynwen Brennan are now co-presidents after George Lucas’ handpicked successor, Kathleen Kennedy, stepped down this year.

It all adds up to a crucial question: Can the nearly 50-year-old franchise still delight its longtime fans, while bringing in new viewers to help it endure?

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“There’s a lot riding on this,” said Jeff Bock, box-office analyst at entertainment data and research firm Exhibitor Relations. “It’s close to a make-or-break strategic test … just to see if the modern ‘Star Wars’ is still viable theatrically.”

“The Mandalorian and Grogu” is expected to gross around $80 million in the U.S. and Canada for the four-day Memorial Day weekend, according to studio estimates.

That would rank among some of the top openings this year, including Amazon MGM Studios’ “Project Hail Mary” ($80.5 million) and Disney-owned 20th Century Studios’ “The Devil Wears Prada 2” ($76.7 million). Another big sci-fi installment, Warner Bros. Pictures and Legendary Entertainment’s “Dune: Part Two,” opened to $82.5 million in 2024.

But for a “Star Wars” movie, that’s considered low.

2019’s “The Rise of Skywalker,” for example, opened to $177 million, with 2015’s “The Force Awakens” and 2017’s “The Last Jedi” each debuting to more than $200 million. The $84-million opening for 2018’s “Solo: A Star Wars Story” was considered a disappointment at the box office.

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To be sure, theatrical expectations have changed dramatically since the pandemic, which altered moviegoers’ habits and trained many to wait and watch films at home.

“The Mandalorian and Grogu” also stems from a streaming series and does not continue the story line of the traditional “Star Wars” saga films that follow the Skywalker family. (The movie’s reported production budget of $166 million also makes it cheaper than its predecessors.)

And for Disney, box-office revenue will not be the only indicator of this film’s success.

Director Jon Favreau, left, and Pedro Pascal on the set of Lucasfilm’s “Star Wars: The Mandalorian and Grogu.”

(Nicola Goode / Lucasfilm Ltd. / Disney via Associated Press)

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The company expects the movie will boost other parts of its business, including streaming, its gaming collaboration with Fortnite and the all-important theme parks, where the film’s main characters appear at the Star Wars: Galaxy’s Edge-themed land, and the Millennium Falcon: Smugglers Run ride has been overlaid with a “Mandalorian and Grogu” storyline.

Then of course, there’s merchandise. (Famously, fans rushed to buy items of Grogu — known colloquially as Baby Yoda — after “The Mandalorian” show debuted in 2019, though products didn’t arrive for months. Once available, 13 million Grogu toys were sold in the two years after they were released, Disney has said.)

“It’s not using cinema in the way ‘Star Wars’ used cinema before,” said Carmelo Esterrich, a professor at the school of communication and culture at Columbia College Chicago, who has written about how “Star Wars” is a reflection of American culture. “It’s using the franchise of television and the power machine of Grogu to bring it to the big screen.”

Grogu’s appeal highlights an important goal for the franchise: expanding beyond its original fan base to new audiences. Although “The Mandalorian and Grogu” builds on storylines from the streaming show, the film was designed to be accessible to viewers who had never watched it.

“I hope that our excitement and joy and love of ‘Star Wars’ translates to a new generation of fans seeing it, experiencing it the way we did for a long time,” director Jon Favreau told an audience in April at the CinemaCon trade conference during a presentation about Disney’s film lineup.

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Early ticket sale tracking indicated strong interest from older men, who have historically been the core audience for “Star Wars” films. But after an extensive marketing campaign, Disney’s studio estimates now show audiences are younger, with more families and women represented.

To date, “The Mandalorian” is still the most popular Disney+ series. The show, which has run for three seasons, has won 15 Emmys, including for sound mixing and special effects. The critical and fan response, as well as the opportunity to explore new characters’ backstories, led Lucasfilm to choose this show to spin off into a movie, according to sources close to the studio.

Since the launch of the platform in November 2019, “The Mandalorian” and other “Star Wars” titles such as “The Acolyte” and the second season of “Andor” have seen relatively high audience demand, according to an analysis by Parrot Analytics, a firm that tracks streaming data. Despite several big hits, the average demand for live-action television series set in the galaxy far, far away have shown a slight downward trend over time.

In contrast, demand for live-action series from Disney-owned Marvel Studios has held stable since the premiere of its first streaming show, “WandaVision.” Though Marvel’s television offerings outnumber those of “Star Wars,” overall audience interest in the superhero shows is less than the biggest “Star Wars” hits and more comparable to some of Lucasfilm’s lesser-hyped titles, including “Skeleton Crew,” according to Parrot Analytics.

In the end, “The Mandalorian and Grogu” needs to keep audience interest in “Star Wars” on the big screen. Next year, Lucasfilm will release “Star Wars: Starfighter,” a film starring Ryan Gosling and directed by Shawn Levy of “Deadpool & Wolverine” that has generated great interest, particularly given Gosling’s turn in “Project Hail Mary.”

“This is a safe reentry point,” Bock of Exhibitor Relations said of “The Mandalorian” movie. “If Grogu can bring in the families and if ‘The Mandalorian’ continues to bring in the audiences of the old movies, maybe they can bridge these generations like classic ‘Star Wars’ once did.”

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Oil Prices Fall Sharply on News of Possible Iran Deal

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Oil Prices Fall Sharply on News of Possible Iran Deal

Oil prices fell sharply on Monday after American officials said the United States and Iran had agreed in principle to a peace deal that would reopen the Strait of Hormuz, a vital trading route for oil and natural gas that normally carries up to one-fifth of the world’s oil supply. But final approval of a deal could take a while.

President Trump vowed on Monday that either a deal would be “great and meaningful” or “there will be no deal.” Esmaeil Baghaei, the Iranian foreign ministry spokesman, said on Monday that “no one can claim that the signing of an agreement is imminent,” according to Iran’s state broadcaster. Iran’s top negotiators, led by Mohammad Bagher Ghalibaf, the speaker of Parliament, arrived in Qatar on Monday for further talks, Iranian state media said.

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