Bankruptcy Judge Curtails UFW’s Boycott of Egg City

A federal bankruptcy judge Tuesday ordered United Farm Workers to curb its 5-month-old boycott against the Egg City ranch near Moorpark.

Farm labor experts said Judge Calvin K. Ashland’s decision marked the first time a bankruptcy judge has curtailed a boycott called by California farm workers since the state’s 11-year-old Agricultural Labor Relations Act was adopted.

The effect of the ruling, which the union is expected to appeal, is unclear. Labor lawyers said the egg ranch’s striking workers might, for example, be permitted to stand outside of a market and tell customers about their walkout, as long as they don’t encourage customers to go elsewhere or encourage store employees to stop handling Egg City’s eggs.

UFW officials could not be reached for comment.

Wages Cut as Much as 30%

Egg City, which is believed to be the world’s largest egg ranch, in May filed for protection from creditors in bankruptcy court. Soon afterward, it cut workers’ wages by as much as 30%, to a range of $4.07 to $5.69 an hour, saying it needed to reduce expenses to stay in business.

About 250 workers responded by going on strike in June, and the union launched a boycott that has been directed primarily at the Lucky Stores supermarket chain and small markets in predominantly Latino neighborhoods across California.

The National Labor Relations Board filed a complaint in October against the UFW, accusing the union of illegally picketing Egg City customers.

In his decision, Ashland said his ruling against the boycott stemmed from the bankruptcy court’s duty to protect the Ventura County ranch’s assets. Some legal experts suggested that the decision could set a significant precedent under California farm labor law, which, unlike federal labor law, permits secondary boycotts.

Legal experts said the ruling also raised issues under federal bankruptcy law, which prevents bankruptcy judges from inhibiting strikes.