Linda Doherty

STATEHOUSE UPDATE

The New Jersey Food Council (NJFC) is taking the statewide lead in ensuring that the state’s grocery and food retail stores remain a critical lifeline for both employees and shoppers during the COVID-19 pandemic.

This statewide communication blitz is providing much needed information and resources to New Jersey shoppers and the food industry workforce, ensuring all are equipped to navigate through the grocery experience under government mandates during this global emergency.

The sudden outbreak and dramatic impact of the coronavirus created panic, empty store shelves and uncertainty amongst shoppers and grocery workers. We realized there was no playbook so it was necessary to work closely with our government partners, rally behind the challenges of the food industry, inform the public and support our workforce.

The result has been a series of communication initiatives over the course of the last several weeks to raise awareness and to ensure shoppers understand the new temporary requirements when they visit their local grocery store and interact with store employees, who New Jersey Gov. Phil Murphy describes as “mission critical.”

Initiatives include:

The development and widespread distribution of 10 Safe Shopping Tips, which have been published in mainstream and trade media, as well as promoted on social media channels for NJFC, its members, its vendors and its supporters. These tips, available at njfoodcouncil.com, include the latest government mandates, as well as best practices. Shoppers and food workers are required to wear facial coverings. The NJFC urges customers to shop alone to reduce crowds and to practice social distancing. Other key tips for shoppers: Use your eyes to inspect items, not your hands. Also, discard gloves, wipes and masks in the trash.

▪ Promotion of the #ClothCoverChallenge. After the State of New Jersey mandated that all New Jersey customers and employees must wear a cloth face covering, NJFC took to Twitter to engage customers to create their own cloth covering, with a little bit of fun, participating in the #ClothCoverChallenge on social media.

▪NJFC has launched a statewide public service announcement, which is now being broadcast on most New Jersey airwaves, from statewide broadcast news to local stations. The 30-second spots, in partnership with the New Jersey Broadcasters Association, explains ways in which shoppers and employees can remain safe, as they follow the new government mandates.

▪ NJFC is working to connect people with jobs. In partnership with the Office of the Governor, the New Jersey Economic Development Authority and the New Jersey Restaurant & Hospitality Association, the NJFC developed programs and resources including a Jobs & Hiring Portal for hospitality talent and others out of work to apply for jobs and to promote job openings in food stores during this crisis.

Placement of opinion-editorials in New Jersey media, underscoring the importance of shopper and worker safety, as well as the need to keep single-use plastic bags in stores and discourage reusable bags as a temporary way in which to keep employees safe.

▪ Placed a statewide banner ad on the TAPInto news network, comprising hyperlocal news websites in 75 New Jersey municipalities, generating more than 1 million readers a month. The ad, with a hyperlink to the New Jersey Food Council, urges shoppers to properly discard of PPE.

Distributed on social media a special message from Murphy. The governor produced a video to express his appreciation to grocery store workers who he considers “a vital part of our front-line emergency response team and mission critical” to feeding 9 million New Jersey residents.

STATEHOUSE UPDATE

2019 will be remembered as a special milestone for NJFC as the association celebrated our 50th anniversary at the Park Chateau in East Brunswick. The reception and reunion were a spirited affair as members were treated to a video production of our history, we welcomed former board members and chairs, enjoyed entertainment from 1969, feasted on a delicious menu, extended friendships and created new memories. The event sponsorships exceeded our expectations and it allowed 100 percent of ticket sales to be donated directly to our Educational Scholarship Fund. We raised more than $25,000 for this fund.

In other areas, NJFC had a hectic year advocating on behalf of the membership as a divided Democratic majority in Trenton is keeping us up at night. Here are some NJFC highlights.

NJFC has been advocating for uniform statewide legislation to phase out single use disposable plastic and paper bags, and encourage the use of reusable bags in New Jersey. Additionally, NJFC and the NJ Clean Communities Council are partnering on a new initiative, the Choose to Reuse Campaign, to reduce single use plastic and paper bags, and encourage consumers to bring their own reusable bags. The Choose to Reuse Campaign will educate and remind consumers that they can choose to bring their own reusable bags when they shop, reduce their consumption of disposable bags, and recycle their plastic bags.

After months of advocacy, we are pleased that the fiscal year 2020 budget does not include tax increases proposed by the governor, including the “millionaire’s tax” on high earners and the “corporate responsibility fee,” a $150 per employee tax on employers whose employees utilize Medicaid. NJFC formed and led a coalition of business trade groups in opposition to this tax increase, meeting with numerous legislators to educate them on the significant and detrimental impact of this proposed tax, which would have fallen disproportionately on our industry and members if it had been enacted.

The NJFC energy aggregation group completed an electricity supply procurement process that will reduce participating members’ annual electricity supply costs by 3.6 percent, provide budget certainty, and eliminate price risk for the next two years. NJFC retailers completed a six-month procurement process by selecting the lowest price offers from three of the state’s largest electricity suppliers.

NJFC hosted a store tour with assembly agriculture committee chairman Eric Houghtaling (D-11) and committee member Assemblyman Ron Dancer (R-12) at the new Saker ShopRite in Shrewsbury, NJ. Members discussed food policy and several legislative initiatives, including disposable bag legislation, SNAP issues, and food waste recycling practices.

The second tour featured New Jersey acting director of consumer affairs Paul Rodriguez hosted by Kings Supermarkets. We had a lengthy tour highlighting the challenges of uneven enforcement and the need to modernize unit pricing standards.

NJFC was awarded more than $219,000 to support the Food Safety and Management Leadership series training programs. The grant, administered by Rutgers University and funded by the State Department of Labor and Workforce Development, will pay for one year of training. This year’s program will include training in proper food safety protocol, increasing energy efficiency, and customized soft skills, such as performance management, effective communication, and team building.

We sold 30 West Lafayette Street, the NJFC headquarters for the last 36 years, and leased new, modern offices off Rt. 29 in Trenton. Now, committee meetings and events will be held at the new headquarters.

 

ON THE HORIZON

During the January annual membership meeting, Richard Saker will complete his term as chair after serving three one-year terms. The new leadership team to be sworn in includes Joe Sofia of Wegmans Food Markets as chair, Andrew Kent of Glass Gardens as vice chair and Suzanne DelVecchio of QuickChek Corporation as secretary.

January 13 is the last day of the legislative lame duck session when all order of business is concluded by the current seated Legislature. The 219th legislature will swear in the newly seated general assembly and start the next two-year cycle on January 15. All new bills will be pre-filed and the legislative process starts again.

The administration’s draft energy master plan outlines strategies for the state to achieve 100 percent clean energy by 2050, defined as 100 percent carbon neutral electricity generation and maximum electrification of the transportation and building sectors. Many of the proposed initiatives will have an impact on NJFC members, as the energy load of a supermarket and major convenience store is significant. NJFC understands the importance of reliable and diverse energy sources, however, we are concerned about the potential impact of the draft plan on electric generation costs.

NJFC is raising concerns about new legislation that requires employers to provide their employees with advance notice of their work schedules, and imposes various restrictions and regulations pertaining to scheduling practices and policies. Scheduling mandates create unintended consequences for both employers and employees. Flexible scheduling is critical to the food retail and distribution industry.

We continue to relay our significant concerns with legislation which bans or severely restricts the sale of various tobacco and vaping products, including legislation which bans the sale of menthol cigarettes, legislation which prohibits the sale of vaping products by all retailers that are not licensed vape shops, and legislation which prohibits the sale of tobacco products at pharmacies, which includes grocery stores with pharmacies.

In partnership with the New Jersey Office of Weights and Measures, NJFC will host a winter session with state officials to review compliance procedures and implementation of new regulations found in Handbook 130. The date will be announced soon. Stay tuned.

 

 

STATEHOUSE UPDATE

Recently, the New Jersey Food Council sold 30 West Lafayette Street in Trenton and moved our offices to new headquarters near Trenton Thunder Stadium known as Arm & Hammer Park in Trenton. We will lease the new office space. We spent 36 years at 30 W. Lafayette Street and outgrew the location. The old building served us well as we have endured so many memories, activities and successes at that location. As we prepared for the move, we went through 50 years of boxes of old photos, mementos, files, event paraphernalia and various issue campaign materials. It has been a wonderful trip down memory lane that highlighted the overwhelming engagement and successes of your New Jersey Food Council.

While it has been a nostalgic month as we’ve gone through the moving process, we are excited for our new home as we settle into the new location. Now we will have room to host our committee meetings, invite legislators and policymakers to meet with members and grow into our new offices. The future of the operation is bright.

A special thank you to the NJFC Executive Committee and our leadership team who supported the sale of the building and the move to a more professional location and modernization of our communications systems.

And kudos to the NJFC team for packing boxes, hauling trash, and organizing offices without skipping a beat of handling member issues, successfully fighting against additional state Budget burdens, leading the NJFC Leadership group in Trenton and hosting our Educational Scholarship Awards Ceremony. What a great team we have to serve our membership!

Please make note of our new address: 429 Riverview Plaza, Trenton, New Jersey 08611. Our office and cell numbers, email addresses and social media platforms remain the same.

It is fitting that we conclude 2019 with the celebration of the 50th Anniversary of NJFC. We look forward to industry participation in what is expected to be a memorable and fun Reception and Reunion on December 5.

STATEHOUSE UPDATE

The news out of Trenton is troubling. The Tax Foundation has ranked New Jersey as number one for implementing the highest combined corporate tax rate in the country at 30.1 percent in 2018. A poll just released by Rutgers-Eagleton found an overwhelming majority of New Jersey residents, 82 percent in fact, said they are overburdened by taxes and not getting their money’s worth of services and another 81 percent are dissatisfied with the way state leaders are making New Jersey more unaffordable. Additionally, a study just released by the members of the New Jersey Society of Certified Public Accountants (NJCPA) found that 75 percent of accountants are advising their clients to relocate their businesses and homes out the Garden State. And NJBIA just released a report that highlights the alarming rate our young adults are leaving the state for higher education and other opportunities.

These significant and overwhelming tax burdens and lack of affordability for New Jersey residents are causing personal and professional challenges. Not surprising, state residents are looking for reliable sources for information to make informed decisions on who should best represent their interests in Trenton.

New Jersey employees around the state are tasked with the ultimate civic responsibility – voting for the men and women who will represent their concerns in local, state and federal government. Many employees learn about candidates from local and national news, special interest groups, and many other sources. Your business can play a role with presenting non-partisan voter information that you provide to them. And the truth is, they want to hear from their employer because they trust you.

By providing your employees with non-biased information on how to register to vote, the candidates on their ballot, and where their polling place is, you can set them up for success when they head out to vote this June for the Primary Election and in November when all 80 members of the NJ General Assembly are up for election.

Employees can be the best advocates and voters for our industry, so it’s important that we provide them with the tools they need to make an informed decision on the candidates and how they can impact their jobs and industry. They should understand how various issues impact the business they work for and know where to find information on where the candidates stand on those issues. They can find these resources at www.jerseyvotes.com.

It’s not about telling employees who to vote for or how to think. It’s simply giving them access to resources that can help them be a more informed and well-rounded voter. We hope you’ll consider reaching out to your employees this month to encourage them to vote in the June primary. It’s crucial that their voices are heard in the June primary and the November general election. The future health and viability of the Garden State depends on it.

STATEHOUSE UPDATE

It only took 11 days for legislative leaders and Governor Murphy to negotiate what could be considered the most harmful $15 an hour minimum wage mandate in the country – 11 days!!

There are no exemptions for minors, no safety valve if the economy tanks and when New Jersey hits $15 an hour in five years, there is an automatic increase based on the CPI every year following. So, the state then will see an unpredictable minimum wage increase every year after 2025 automatically.

This is not a $15-an-hour bill, it is an infinity-and-beyond bill. What is incredibly frustrating is NJFC has spent a full year working with legislative officials and staff to soften the blow and provide meaningful input into the process. The original bill proposed in December by Assembly Speaker Coughlin was thoughtful and manageable. However, the governor’s progressive and inflexible approach on the components of the bill will keep New Jersey unaffordable and continue our economic race to the bottom.

Even when the three leaders met at a New Jersey diner to promote their agreement in late January, the diner owner openly admitted to the press the compromise proposal will force him to go out of business. After he was quickly “educated” by legislative staffers, the diner owner said in a revised statement he may not close his doors but his prices would go up dramatically and it could cost jobs. You can’t make this stuff up! 

Yes, we are aware many food companies do not pay minimum wage and some have moved to a $15 an hour wage which is based on various business models. However, the compression in overall wages, a scheduled $2.15 increase in the next 11 months and then a $1.00 increase each year is difficult to tackle for some members.

Approved mostly by party line, the General Assembly passed the compromise 52-25 and the Senate voted in favor 23-16 with the Democratic caucus providing the majority of the votes for passage.  Governor Murphy signed the bill into law in a pep rally atmosphere cheered on by progressive and labor advocates. 

There are several provisions in the new law to highlight. There is a longer phase-in schedule for some seasonal employees and employees of small businesses with less than five employees and an alternate schedule for agricultural workers. Minor employees are not included in this alternate schedule. The law does not provide for a suspension of the scheduled wage increases in the event of an economic downturn, but the law provides a tax credit for employers who hire workers with disabilities, however the calculation is confusing and it may be difficult for industry to access this credit. This law provides for a training wage of 90 percent of the minimum wage for the first 120 hours an employee works. The new law does not provide for state preemption so a municipality could enact a higher rate. Lastly, the new wage hike does apply to local and county government so expect personal and commercial property taxes to rise as a consequence of the huge increase.

It now has been a full year with Governor Murphy in office. Over the course of the past 12 months, New Jersey has been slammed with increases in corporate business taxes, stifling combined reporting obligations, and establishment of a new-top end income tax rate that applies to pass through companies, all approved to plug state budget holes along with a steep raise in the gas tax, and costly expansion of paid family and sick leave laws. According to the Tax Foundation based out of Washington, DC, these harsh business burdens continue to retain New Jersey’s rank as dead last in the cost of doing business in the nation. This latest overreaching government mandate will continue to anchor our state to the bottom.