Business
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
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.
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%.
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.
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.
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.
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.
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.
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.”
For the trendiest tenants in Hollywood office buildings, it’s the latest fad that goes way beyond designer furniture and art: mini studios
To capitalize on the never-ending flow of stars and influencers who come through Los Angeles, a growing number of companies are building bright little corners for content creators to try products and shoot short videos. Athletic apparel maker Puma, Kim Kardashian’s Skims and cheeky cosmetics retailer e.l.f. have spaces specifically designed to give people a place to experience and broadcast about their brands.
Hollywood, which hasn’t historically been home to apparel companies, is now attracting the offices of fashion retailers, says CIM Group, one of the neighborhood’s largest commercial property landlords.
“When we’re touring a space, one of the first items they bring up is, ‘Where can I build a studio?’” said Blake Eckert, who leases CIM offices in L.A.
Their studio offices also serve as marketing centers, with showrooms and meeting spaces where brands can host proprietary events not open to the public.
“For companies where brand visibility is really important, there is a trend of creating spaces that don’t just function as offices,” said real estate broker Nicole Mihalka of CBRE, who puts together entertainment property leases and sales.
Puma’s global entertainment marketing team is based in its new Hollywood offices, which works with such musical celebrity partners as Rihanna, ASAP Rocky, Dua Lipa, Skepta and Rosé, said Allyssa Rapp, head of Puma Studio L.A.
Allyssa Rapp, director of entertainment marketing at Puma, is shown in the Puma Studio L.A. The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though.
(Kayla Bartkowski / Los Angeles Times)
Hollywood is a central location, she said, for meeting with celebrities, stylists and outside designers, most of whom are based in Los Angeles.
The office is a “creation hub,” she said, where influencers can record Puma’s design prototyping lab supported by libraries of materials and equipment used to create Puma apparel. The company, founded in 1948, is known for its emblematic sneakers such as the Speedcat and its lunging feline logo, and makes athletic wear, accessories and equipment.
Puma’s entertainment marketing team also occupies the office and sometimes uses it for exclusive events.
“We use the space as a showroom, as a social space that transforms from a traditional workplace into more of an experiential space,” Rapp said.
Nontraditional uses include content creation, sit-down dinners, product launches, album listening parties and workshops.
“Inviting people into our space and being able to give them high-touch brand experiences is something tangible and important for them,” she said. “The cultural layer is really important for us.”
The company keeps a closet full of Puma products on hand to give VIP guests. Visits to the studio sanctum are by invitation only, though. There’s no retail portal to the exclusive Hollywood offices.
Puma shoes are on display in the Puma Studio L.A.
(Kayla Bartkowski / Los Angeles Times)
Puma is also positioning its L.A studio as a connection point for major upcoming sporting events coming to Los Angeles, including the World Cup this summer, the 2027 Super Bowl and 2028 Olympics.
In-office studios don’t need to be big to be impactful, Mihalka said. “These are smaller stages, closer to green screen than a massive soundstage.”
Social media is the key driver of content created by most businesses, which may set up small booth-like stages where influencers can hawk hot products while offering discounts to people watching them perform.
Bigger, elevated stages can accommodate multiple performers for extended discussions in front of small audiences, with towering screens behind them to set the mood or illustrate products.
Among the tricked-out offices, she said, is Skims. The company, which is valued at $5 billion, is based in a glass-and-steel office building near the fabled intersection of Hollywood Boulevard and Vine Street.
The fashion retailer declined to comment on the studio uses in its headquarters, but according to architecture firm Odaa, it has open and private offices, meeting rooms, collaboration zones, photo studios, sample libraries, prototype showrooms, an executive lounge and a commissary for 400 people.
Pieces of a shoe sit on a workbench in the Puma Studio L.A.
(Kayla Bartkowski / Los Angeles Times)
The brands building studios typically want to find the darkest spot on the premises to put their content creation or podcast spaces, Eckert said, where they can limit outside light and sound. That’s commonly near the center of the office floor, far from windows and close to permanent shear walls that limit sound intrusion.
They also need space for green rooms and restrooms dedicated to the talent.
Spotify recently built a fancy podcast studio in a CIM office building on trendy Sycamore Avenue that is open by invitation-only to video creators in Spotify’s partner program.
“Ambitious shows need spaces that support big ideas,” Bill Simmons, head of talk strategy at Spotify, said in a statement. “These studios give teams room to experiment and keep pushing what’s possible.”
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
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