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MORRISON I FOERSTER March 1, 2021 Via Email The Honorable Vicente Sarmiento City Council Chambers 22 Civic Center Plaza Santa Ana, California 92701 425 MARKET STREET SAN FRANCISCO CALIFORNIA 94105-2482 TELEPHONE: 415.268.7000 FACSIIe1II.E: 415.268.7522 W W W.MOFO.COM MOAAISON & FOEASTEA LLP BEIJING BEALI\ BOSTON BRUSSELS, DENVEA HONG XONG LONDON LOS ANGELES NEW YOAX PALO ALTO SAN DIEGO SAN FRANCISCO SHANGHAI SINGAPORE TOXYO WASHINGTON D C Writer's Direct Contact +1 (415) 268.6358 WTarantino@mofo.com Re: Premium Pay for Grocery and Retail Pharmacy Workers Ordinances Dear Council Members: We write on behalf of the California Grocers Association (the "CGA") regarding the proposed Urgency Ordinance and Ordinance that single out a specific group of grocery stores (i.e., those operated by companies with 300+ employees) and require them to implement mandatory pay increases (the "Ordinances"). The City Council's rushed consideration of these Ordinances would, if passed, lead to the enactment of unlawful, interest -group driven ordinances that ignore large groups of essential retail workers. They will compel employers to spend less on worker and public health protections in order to avoid losses that could lead to closures. In addition, the Ordinances, in their proposed form, interfere with the collective - bargaining process protected by the National Labor Relations Act (the "NLRA"), and unduly target certain grocers in violation of their constitutional equal protection rights. We respectfully request that the City Council reject the Ordinances as these defects are incurable. The Ordinances fail to address any issue affecting frontline workers' health and safety. The purported purpose of the Ordinance is to "protect and promote the public health, safety, and welfare" during the Covid-19 pandemic. (§ 2.) The Ordinances are devoid of any requirements related to the health and safety of frontline workers or the general public and instead impose costly burdens on certain grocers by requiring them to provide an additional Four Dollars ($4.00) per hour for all hours worked at a Grocery Store ("Premium Pay"). (§ 2.) A wage increase does not play any role in mitigating the risks of exposure to Covid-19, nor is there any suggestion that there is any risk of interruption to the food supply absent an increase in wages. If anything, the Ordinances could increase those risks, as they may divert funds that otherwise would have been available for grocers to continue their investments in public health measures recognized to be effective: enhancing sanitation and cleaning protocols, limiting store capacity, expanding online orders and curbside pickup service, and increasing spacing and social distancing requirements. sf-4438126