Update on the Fresh Organics / Real Foods Labor Dispute

At a hearing beginning in late March, Fresh Organics, Inc. d/b/a/ The Real Food Co. will respond to allegations of unfair labor practices recently put forth by the National Labor Relations Board, Region 20.

On Nov. 26, 2004, the Regional Board issued a consolidated complaint against Fresh Organics, Inc., a wholly-owned subsidiary of Utah-based Nutraceutical International Corp.. The complaint details the Board’s findings with respect to multiple unfair labor practices charges filed against Fresh Organics following the unannounced closure of Fresh Organics’ 24th St. outlet in San Franicsco, which took place just prior to Labor Day 2003. Former 24th St. employees were joined by the United Food and Commercial Workers’ Union in filing charges with the Board.

According to the Board, Fresh Organics illegally interfered with and discriminated against workers who engaged in union and concerted activities by issuing threats, firing individuals, and adopting other coercisive measures - including closing or accelerating the closure of its 24th St. Real Food Co. outlet in San Francisco, and thereby terminating the employment of nearly thirty workers - in order to dissuade employees from organizing. The Board has also asserted that, in refusing to rehire one former 24th St. employee because of her union and concerted activities, Fresh Organics acted illegally.

While Fresh Organics is free to settle out of court on the Board charges at any point during present or future legal proceedings, the corporation has yet to indicate an interest in settling. The charges, consolidated into one case by an order from the Board, will be heard before a National Labor Relations Board Administrative Law Judge starting on Mar. 21, 2005. By Board order, the trial is scheduled for consecutive dates and may last for up to two weeks. ( The hearing is open to the public, and will take place at 901 Market St. in San Francisco. )

Following the March hearing, the Regional Board’s decision would be subject to appeal to the Board in Washington, D.C.. Subsequent to a decison from Washington, future appeals would then enter into the U.S. Court of Appeals system.

Fresh Organics presently operates four stores in the greater San Francisco Bay Area, includingThe Real Food Co. on Stanyan St. in San Francisco, Thom’s Natural Foods on Geary Blvd. in San Francisco, The Real Food Co. in Sausalito, and Cornucopia Community Market in Carmel. Fresh Organics’ Real Food Co. outlet on 24th St. remains closed, and the corporation has not indicated when it plans to reopen the store.

To date, over 1,200 residents who live in the vicinity of the 24th St. store have signed a pledge promising to boycott should Fresh Organics reopen on 24th St. without offering its former employees their jobs back and adopting a neutral stance vis-à-vis the right of its workers to organize.