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October 20, 2003
When Labor and Management Get Along By Gail Heriot I confess that I do not understand the current grocery strike in Southern California. It has been a week now with no agreement in sight. The non-unionized Wal-Mart, whose consumer-friendly low prices have made it the most popular grocery retailer in the world, is sure to be the major beneficiary. Southern California appears to be witnessing a suicide. But I will resist asking Rodney King's question. The last time labor and management in the traditional grocery industry "got along" with each other, it was to persuade California's daffy legislature to squelch their competition. The statute that got passed would have made it illegal to sell groceries in a building the size of a Wal-Mart or CostCo. It was one more occasion for the California legislature to demonstrate what a carnival of special interests it had become. Fortunately, this was back in the year 2000, when now-recalled Governor Gray Davis was still in his responsible moderate phase. He vetoed the legislation. In his scathing veto-message, he called it "anti-competitive and anti-consumer" and "the worst kind of end-of-session manuevering by special interests." Had Gray Davis continued to stand up to the California legislature the way he did that day, he might not have been recalled. |