A potential obstacle is the variety of brands sold by Gallo. Some, like higher-end Gallo of Sonoma, include the name "Gallo." But others, including Louis M. Martini, Redwood Creek, Red Bicyclette, Dancing Bull, and Turning Leaf, don't.
"There's so many brands, and you don't really know who's behind the brands," said Cyril Penn, editor of Wine Business Monthly.
UFW ready to boycott Gallo - again
Contract fight could revive the labor icon
By Rachel Osterman -- Bee Staff Writer Published 2:15 am PDT Tuesday, June 14, 2005 http://www.sacbee.com/content/business/story/13062718p-13908340c.html
The United Farm Workers union plans to announce today a nationwide boycott targeting E&J Gallo Winery over stalled contract negotiations. It's the union's first national boycott since the 1980s when Cesar Chavez led the union.
The boycott, to be announced at San Francisco's City Hall, calls on consumers to avoid buying any of Gallo's more than 40 wine labels.
The union contends the company's Sonoma County subsidiary operates a two-tiered benefit structure: one for roughly 90 field workers who report directly to Gallo and receive vacation, health care and pension benefits; the other for 220 workers who report to farm labor contractors and take home the same $8.38 hourly base pay but don't earn benefits.
"All the workers suffer from chronically low pay. But we need to get something meaningful for everybody and, especially, for the farm labor contractor employees," said UFW spokesman Marc Grossman. The previous contract expired in 2003.
The labor dispute involves only Gallo's Vineyards Inc., but the UFW will boycott the entire Gallo roster of wines. Modesto-based Gallo ranks as one of the top wine sellers in the U.S. by volume, according to Wine Business Monthly.
In response to the announced boycott, Gallo said it's the UFW, not the company, that is blocking negotiations.
"We want a new contract. The workers deserve a new contract," the company said in a statement. "It is time for the UFW to return to the bargaining table and negotiate a new agreement."
The fight could help reinvigorate the UFW, which has seen its membership dwindle from a high of around 60,000 to the 27,000 the union claims today. (U.S. Department of Labor estimates put the number considerably lower.)
"I think it's a crucial move," said Jerry Cohen, a former UFW general counsel who has criticized the union for not doing enough organizing. "It becomes a fight that you can not only win in the fields, but also the city."
One of the UFW's early boycotts was against Gallo wines, sparked by the company's switch from a UFW to a Teamsters contract in 1973. The boycott, in which supporters picketed liquor stores across the country, lasted through 1977, Grossman said.
This time, the UFW will rely on e-mails and the Internet to convey its message, Grossman said. In addition to today's rally in San Francisco, he said the UFW is lining up support from politicians, labor leaders and clergy.
At least one labor expert questioned the reliance on the virtual message.
"In order to get people to act, there has to be a face-to-face appeal," said Jeff Lustig, who teaches labor relations at California State University, Sacramento.
But Lustig said the UFW had other advantages.
"There's a lot of support in the public for the farmworkers. A lot of people support the historical struggle and know there have been rollbacks in recent years," he said. <...>
On Monday, Gallo spokesman John Segale said the UFW's concerns about two-tiered benefits are unfair, since the company has allowed farm labor contractor employees to apply for jobs directly under the company, qualifying for full benefits.
Still, both sides have much at stake.
If the union doesn't win significant gains, some farm laborers might support decertification, especially if they find themselves paying more in union dues than they get at the bargaining table.
As for Gallo: "We take any threat against our product seriously," Segale said. "There's a lot of research that shows consumer boycotts don't work, they're not effective, and they tend to negatively impact the employees first and foremost."
About the writer: The Bee's Rachel Osterman can be reached at (916) 321-1052 or rosterman at sacbee.com The Bee's Jim Wasserman contributed to this report.
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