Monterey Mushrooms signs five-year pact with UFW
Monterey Mushrooms signs five-year pact with UFW
Watsonville, CA-based Monterey Mushrooms Inc. signed a five-year contract with the United Farm Workers May 14 that involves the company's 650 full- time, year-round employees at its Royal Oaks, CA, facility.
The Royal Oaks facility -- which sits between Watsonville and Prunedale -- produces in excess of 750,000 pounds of fresh mushrooms per week, 52 weeks a year. Industry leader Monterey Mushrooms grows all its mushrooms on-site.
The contract provides for full medical, dental and vision benefits for workers and their families, as well as wage increases and better vacation and paid holiday scenarios.
The amount of the contract -- the total dollars spent on labor -- over five years is "close to $100 million," said David Fullington, general manager of Monterey Mushrooms.
About 50 percent of the employees at the Royal Oaks facility have worked for Monterey Mushrooms for more than 20 years, he said.
"Central California is the highest area for wages," Mr. Fullington said, adding however that Monterey Mushrooms owner Shah Kazemi likes that it is centrally located.
"In my view, [Mr. Kazemi has] done a pretty remarkable thing," Mr. Fullington said. "He's made a commitment to agriculture and labor."
Mr. Fullington said that Mr. Kazemi wants to keep his employees at work. The company was founded in 1971 and was sold to Mr. Kazemi in the late 1970s. Prior to this contract, Monterey Mushrooms and UFW had a five-year contract that had been extended 18 months.
The company's facility in nearby Las Lomas, CA, has about 100 employees and is "just going into [union contract] negotiations," Mr. Fullington said. The Las Lomas facility and the company's facility in Arroyo Grande, CA, serve as feeder facilities to the Royal Oaks facility. Las Lomas produces about 125,000 to 130,000 pounds per week, while Arroyo Grande produces 35,000 pounds per week. Arroyo Grande is a specialty organic facility.
The Royal Oaks plant produces mostly white button mushrooms for distribution to retailers throughout the West.
"We are heavily retail [oriented], and the retail market is where the highest margins are in our business," Mr. Fullington said. "We're much better off selling to that market."
The company has nine facilities across the United States where it grows fresh mushrooms, and one each in Canada and Mexico, as well as processing, spawn and supplement manufacturing facilities.
"We provide most of the spawn for our competitors even," Mr. Fullington said.
The Royal Oaks facility -- which sits between Watsonville and Prunedale -- produces in excess of 750,000 pounds of fresh mushrooms per week, 52 weeks a year. Industry leader Monterey Mushrooms grows all its mushrooms on-site.
The contract provides for full medical, dental and vision benefits for workers and their families, as well as wage increases and better vacation and paid holiday scenarios.
The amount of the contract -- the total dollars spent on labor -- over five years is "close to $100 million," said David Fullington, general manager of Monterey Mushrooms.
About 50 percent of the employees at the Royal Oaks facility have worked for Monterey Mushrooms for more than 20 years, he said.
"Central California is the highest area for wages," Mr. Fullington said, adding however that Monterey Mushrooms owner Shah Kazemi likes that it is centrally located.
"In my view, [Mr. Kazemi has] done a pretty remarkable thing," Mr. Fullington said. "He's made a commitment to agriculture and labor."
Mr. Fullington said that Mr. Kazemi wants to keep his employees at work. The company was founded in 1971 and was sold to Mr. Kazemi in the late 1970s. Prior to this contract, Monterey Mushrooms and UFW had a five-year contract that had been extended 18 months.
The company's facility in nearby Las Lomas, CA, has about 100 employees and is "just going into [union contract] negotiations," Mr. Fullington said. The Las Lomas facility and the company's facility in Arroyo Grande, CA, serve as feeder facilities to the Royal Oaks facility. Las Lomas produces about 125,000 to 130,000 pounds per week, while Arroyo Grande produces 35,000 pounds per week. Arroyo Grande is a specialty organic facility.
The Royal Oaks plant produces mostly white button mushrooms for distribution to retailers throughout the West.
"We are heavily retail [oriented], and the retail market is where the highest margins are in our business," Mr. Fullington said. "We're much better off selling to that market."
The company has nine facilities across the United States where it grows fresh mushrooms, and one each in Canada and Mexico, as well as processing, spawn and supplement manufacturing facilities.
"We provide most of the spawn for our competitors even," Mr. Fullington said.
