Inside Membership Elects Officers, Executive Committee 2015-2016

January 2015

Membership Elects Officers, Executive Committee

he IFRA general membership Larry Tobias, Kirby Foods – We look forward unanimously elected Jerry Champaign to working with Shawgo for a second term Ken Lansing, Martin’s IGA, these Association as Chairman of the Illinois Immediate Past Chairman – leaders in 2015 and TFood Retailers Association. The Effingham offer our sincerest general election took place during the congratulations. Newly elected Executive Committee IFRA Chairman Association’s annual state conference held We thank recently members: Jerry Shawgo, at the Tinley Park Convention Center, retired members: Oct. 8-9, 2014. Ken Casaccio, Leamington Foods, Orion IGA IFRA treasurer, Tom Chicago Also elected as officers were: Woodlock – Sentry Foods and Executive Luke Kotara, Berkot’s Super Foods, Vice Chairman: Art Potash, Potash Committee Member Dave Wilkinson Orland Park Markets, Chicago – Strack & VanTil for their many years Vice Chairman: Rich Niemann, Jr., Newly elected members of the IFRA of service to the Association. A tribute Niemann Foods, Quincy Board of Directors are: was presented to them at the Annual Newly Elected Treasurer: Rob Prisco, Mark Grube, Super Valu Midwest Awards Banquet. We also recognize IFRA Prisco’s Fine Foods, Aurora Region, Champaign member, Alfredo Linares – Chiquita Food Re-elected Executive Committee Charlie Lynn, Associated Wholesale Market – Chicago for his many years of members are: Grocers, Springfield, MO service to the association as a member of Mike Kozlowski, Fairplay Foods – Martin Sandoval, Chiquita Food the board of directors. Alfredo is a very Chicago Market, Chicago active member of the Association and Ken Nemeth, Central Grocers – Joliet Rick Van Klaveren, Spartan Nash, currently serves on the Board of Directors Phillip Salerno, Family Foods – Westville, IN of Central Grocers. Martin Sandoval Warrenville was elected to fill the seat vacated by Mr. Linares.

Inside Beverly Arts Center Names Theater 2015-2016 IFRA for Baffes family, County Fair Foods Pages 4-5 IFRA Scholarship Program The IFRA Scholarship Program application process Legislative Update Page 3 Education began December 1, 2014. The announcement NLRB Email Rule Page 2 Foundation notice, mailed to all members of the Association, NLRB Again Approves should be displayed in a prominent location for all Expedited Election Rules Page 6 employees to read. continued page 2 2 IFRA Scholarship Program continued

IFRA PLEASE NOTE: All IFRA member Additionally nine member companies participated Education companies are eligible to participate. in the Piggyback Program in order to provide a Foundation All completed scholarship program specifically for their applications must employees and employees' dependents be postmarked no later than March 1, utilizing the Education Foundation 2015, for consideration. We encourage For the 2014- application process. A total of $55,000 in students to apply online by going to the scholarships was distributed through the IFRA website at www.ilfood.org, where 2015 academic Piggyback program. they will also be able to print out an year, 82 students To assure complete impartiality in the application if they prefer. selection of winners and to maintain a For the 2014-2015 academic year, 82 received one-year high level of professionalism in dealing students received one-year scholarships scholarships totaling with students, parents, high schools totaling $67,000 through the IFRA and colleges, the IFRA Scholarship program. The scholarships funded by the $67,000 through the selection process is performed by Sands & Associates. Foundation are one-year awards in the IFRA program. amount of $1,000 or $500. Using funds Don’t forget to display the poster! You raised from the IFRA grand raffle ticket may have a deserving student who wins a sales and various golf outings throughout scholarship. the summer months, the Foundation awarded $12,000 in scholarships to employees or children of If you did not receive the posters, please full-time employees from Illinois Food Retailers Association contact the Association office at 630-627-8100. member companies.

We would like to thank Central Grocers for allowing the Education Foundation to sponsor betting holes at their Annual Golf Outing with matching contributions to raise funds for the Foundation. Your support is greatly appreciated.

NLRB “Deletes” Employer Email Rule Excerpted from Seyfarth Shaw Client Alert, December 13, 2014

Until December 11, employers thought that they owned their email systems and could limit their use to company business. On that day, a divided National Labor Relations Board (“NLRB”) ruled “not so.”

In Purple Communications, 361 NLRB No. 126 (Dec. 11, 2014, the NLRB ruled that employees who have access to an employer’s email system as part of their job generally may, during non-working time, use the email system to communicate about wages, hours, working conditions and union issues. The NLRB reached this conclusion notwithstanding the fact that Purple Communications has a rule providing that its email system was to be used for “business purposes only.”

It is expected that the NLRB’s ruling will be challenged in the federal courts.

©Illinois Food Retailers Association/Page 2 At left: IRMA Legislative Update Vice President & IFRA Legislative Consultants: IRMA Vice President & General Counsel Tanya Triche General Counsel Tanya Triche IRMA Government Affairs Manager Alec Laird

ollowing are some of the retail generally have no actual knowledge Fbills that were passed by the 98th that the software they are using may be General assembly and signed by protected under someone else’s patent. Governor Quinn with an effective The Attorney General’s bill puts in At right: IRMA date of January 1, 2015. place significant controls so that patent Government lawsuits are restricted to clear, intentional Affairs Manager Job Opportunities for violations of someone else’s protected Alec Laird Qualified Applicants Act work. (Ban the Box) Payroll Cards HB 5701 (Rep. Rita Mayfield, 1, 2015, to complete training in basic After almost a year of negotiations, HB D-Chicago/Sen. Antonio Munoz, responsible alcohol service by July 1, 2015 5622 (Rep. Art Turner, D- Chicago/ D-Chicago) created the Job or within 30 days after the alcohol server Sen. Kwame Raoul, D- Chicago) passed Opportunities for Qualified begins his or her employment, whichever through the legislature by a vote of 98- Applicants Act (Ban the Box). is later. It provides that a responsible 11-1 and was signed by the Governor. As amended, HB 5701 prohibits alcohol service training certificate shall be The final bill will allow the use of payroll employers from asking about valid for three years. Sets forth criteria for cards as an acceptable form of wage criminal convictions on the face of an classroom-based training, online training, payment. Employees will now be able to application. It allows employers with computer-based training, and testing. It make the choice to use them if offered 15 or more employees to ask about requires a certificate program to provide by their employer and will not only be convictions during the interview and access on a 24-hour-per-day, seven days- able to use the cards to receive their to conduct a criminal background per-week basis for certificate verification. wages, but they can also use them to check after determining that the It also provides that the server training make purchases, withdraw money from applicant is qualified for an interview. requirement (i) only applies to servers in the ATM and pay bills. Employers are It also provides an exemption for Cook County and (ii) does not apply to required to provide the employee with employers that are required to ask or special event retailers. certain notices regarding the terms and obtain specific information regarding conditions of the card, including listing Liquor Enforcement criminal backgrounds for a specific of any fees associated with the card. In position. SB 728 (Sen. Terry Link, D-Gurnee/ addition, the employee will be granted Rep. Arthur Turner, D-Chicago) an opportunity to receive a transaction Patent Trolls provides that when determining multiple statement for free, as well as unlimited violations for the sale of alcohol to a Prohibits a new phenomenon opportunities to check their balance person under the age of 21, a second known as patent trolling that has by phone for free. Once the employee or subsequent violation for the sale of affected businesses across the U.S. leaves the employment relationship, the alcohol to a person under the age of 21 and Illinois. SB 3405 (Sen. Daniel employer must send notice that the terms shall only be considered if the violation Biss, D-Skokie/Rep. Ann Williams, and conditions of the card may change. D-Chicago) seeks to protect the was committed within five years after the business community from patent Alcohol Server Training date when a prior violation for the sale trolls by placing a number of of alcohol to a person under the age of HB 5926 (Rep. Sara Feigenholtz, restrictions on the circumstances 21 was committed. It also provides that D-Chicago/Sen. Napoleon Harris, concerning a law firm’s ability to no agent of the Illinois Liquor Control D-Harvey) requires all alcohol servers, pursue a lawsuit against a company Commission shall inspect private areas except for alcohol servers who have that it believes is violating a patent. within the premises without reasonable been issued a valid server certificate by Often the use in question revolves suspicion or a warrant during an a certified Beverage Alcohol Sellers and around obscure patents regarding inspection. These include, but are not Servers Education and Training (BASSET) very specialized software commonly limited to, safes, personal property and trainer between July 1, 2012 and July used in the retail industry. Retailers closed desks.

©Illinois Food Retailers Association/Page 3 Beverly Arts Center Names Theater for Baffes Family

ince he opened his first County friendship and stewardship. And they Fair Foods Store in 1964, Bill run a wonderful supermarket—I think Baffes has been a big believer in “County Fair has I might be one of their best customers. giving back to his community. As a Beverly resident for 14 years with S“County Fair has always been very always been very a growing family, it seems I am there involved in the community,” Bill said, involved in the every other day!” “because the community has been so “We are truly honored that they loyal to our store. We feel that giving community,” Bill bestowed this recognition on our back is the proper thing to do.” said, “because the family,” Bill said. “It was a very festive One community institution that has community has been occasion and there is beautiful signage benefited from the store’s commitment at the entrance that says “The Baffes to giving back is the Beverly Arts so loyal to our store. Theatre.” Center, which offers fine arts education, We feel that giving “My wife Joan as much as myself programming and entertainment to the was instrumental in this honor,” Bill Beverly/Morgan Park neighborhood on back is the proper continued. “She was a theater major Chicago’s south side. thing to do.” in college and has been very active More than a decade ago, the Beverly in community theater. She’s also our Arts Center built a new facility to resident artist and paints all of the signs increase event and programming in our store.” opportunities. County Fair Foods To recognize the Baffes family for Since its founding 50 years ago, County contributed $100,000 to help make the their generosity, 19th Ward Alderman Fair Foods has had the support of the dream of an expanded center a reality. Matthew O’Shea recommended that members of the Baffes family. Today, Located in Chicago’s historic Beverly/ they rename the Beverly Arts Center Bill’s son Tom is president and general Morgan Park neighborhood, the Beverly Theatre. At a special ceremony on manager, his son-in-law Mike Winkler Arts Center is a multi-discipline, December 7, the 400-seat mainstage is store manager and his three daughters multicultural center offering fine theater was renamed the Baffes Theatre. continue to be active in the business. arts education, programming and “The Baffes Family has been incredibly “Bill Baffes and family-owned County entertainment for all ages. The BAC supportive of and generous to the Fair Foods have been tremendous offers classes in art, music, dance and Beverly Arts Center,” said Donna partners in the community,” said Ken theater; rotating exhibitions of art by Somerville, the Arts Center’s creative Nemeth, President & CEO of Central established and emerging artists; and director. “We are so grateful for their one of the most dynamic performing continued 2 arts programs in the city. Recently, the Arts Center found itself in financial straits, no longer able to service the debt on its expanded facility. To help keep the struggling community center on its feet, the Baffes family and County Fair Foods committed $125,000 in 2013 and $125,000 in 2014. Their contribution, together with concessions from the bank holding the mortgage, helped to keep the Beverly Arts Center open.

The Baffes family

©Illinois Food Retailers Association/Page 4 Top left: Bill and Joan Baffes in front of their County Fair Foods Store. Top right: Bill and Joan get ready to cut the ribbon. Above left: The Beverly Arts Center. Above right: The Baffes family gets ready to cut the ribbon, from l to r: Bill and Joan's daughters Chrissy Steiner and Terri Winkler, Bill Baffes, Joan Baffes, Bill and Joan's daughter Katie Coderre and Tom Baffes.

Grocers, Inc. “They have also been really happy for the Baffes Family. understand what customer service is all outstanding supporters and members I had the privilege of working for about. Bill served on the IFRA board of our Central Grocers cooperative. County Fair throughout my high of directors in the 70s and Tom was Bill and his team have a genuine school years and now enjoy visiting elected to the board in 2006.” passion for the food business and the with Bill and Tom occasionally on a Bill Baffes believes that supporting the local community. This is just another Saturday afternoon in the “executive community that has patronized their great example of his generosity and suite” off the employee break room. store for 50 years is good business. “To support. We are truly proud to be Bill is not shy about expressing his be a successful business owner today, it’s associated with the Baffes family and point-of-view. Most of the time, a two-way street. If you want support offer our congratulations to all in however, you see them on the sales from the community, you need to support of the Baffes Theatre.” floor greeting customers and making support the community.” n sure they are well taken care of. They IFRA President Brian Jordan also run a great supermarket and truly offered his congratulations. “I am

©Illinois Food Retailers Association/Page 5 NLRB Again Approves Expedited Election Rules Excerpted from Seyfarth Shaw Management Alert, December 12, 2014

he National Labor Relations Employer Must File a Board (“Board” or “NLRB”) has Preliminary List of Voters as adopted its expedited election “These rules will take Trules that have been previously proposed Part of the Required Position twice and approved in part once, only Statement effect on April 14, 2015, to be ruled invalid by the United The employer must also provide and will significantly States District Court for the District of a preliminary list of voters with Columbia on procedural grounds. The names, work locations, shifts and job shift the playing field and rule will be published in the Federal classifications in the proposed unit, make it easier for unions Register on December 15, 2014. Absent but without contact information, to another successful challenge, these the petitioning union (and any other to organize employees.” rules will take effect on April 14, 2015, parties) and to the regional director. and will significantly shift the playing If the employer contends that the field and make it easier for unions to proposed unit is inappropriate, the organize employees. employer shall separately list the the election containing the employees’ names, work locations, shifts and job full names and residence addresses, but The New Rules classifications of all individuals, if any, not their email addresses and telephone that it contends must be added to or numbers. Under the new rules, an The newly approved rules include the excluded from the proposed unit to employer must file a preliminary list following changes to existing representation make it an appropriate unit. of voters, as well as an Excelsior list. case procedures: The latter list must be sent directly More Discretionary Authority to Shorter Time for Pre-Election to all parties, and must contain the Regional Directors and Less Pre- employees’ available personal (non- Hearings Election Resolution of Disputes business) email addresses and available Pre-election hearings will normally be Concerning Unit, Placement, telephone numbers (home and cell), work locations, shifts and job set to open eight days from the date of Exclusions and Eligibility service of the notice of hearing. classifications. The rules also require The regional director will decide the that the list be produced in electronic Employer Must Prepare and File issues to be litigated in each case. The form unless the employer lacks the a Position Statement to Identify hearing officer may solicit offers of capacity to do so. proof of any or all issues. If the regional Disputed Issues director determines that the evidence Earlier Submission of Excelsior An employer will ordinarily be required described in the offer of proof is List insufficient to sustain the proponent’s to prepare and file a comprehensive The Excelsior list will generally be “statement of position” by noon on the position, the evidence shall not be received. required to be given to the petitioning business day preceding the date of the union (and the other parties, if any) hearing. In that position statement, No Right to File a Post- within two business days after the the employer must identify any issues approval of an election agreement or regarding the composition of the Hearing Brief the issuance of a Direction of Election, proposed bargaining unit, date, time The regional director will have the rather than the seven calendar days and place of the election, and other authority to determine whether parties previously allowed. election-related matters. Any issues may file post-hearing briefs. omitted by the employer from its Earlier Elections statement are waived by the employer New Excelsior List Requirements and may not be raised later. Current language that requires an Under the old rule, the union received election normally be conducted an Excelsior list of eligible voters via between the 25th and 30th day after the Board from the employer prior to the direction of the election will be continued 2

©Illinois Food Retailers Association/Page 6 eliminated, and replaced by language Miscimarra and Harry Johnson, a “vote on supervisory status, an employer requiring that elections be set “for now, understand later” scheme and that has purported supervisors assist in the earliest date practicable, “ thereby “advocate(ing)” a “cure” that is not communicating the employer’s position permitting elections to be held as early rationally related to the disease. in an election campaign runs the risk as only a few days after the Regional of election objections and unfair labor There can be no doubt that these new Director’s decision (assuming non- practice charges that will invalidate the rules will significantly benefit unions employer parties waive their right to election if the NLRB ultimately finds and their organizers. Indeed, the shorter have the Excelsior list at least 10 days that the individuals are not statutory the election process (10-21 days vs. before the date of the election). supervisors. Likewise, an employer that 38-45 days), the less time that an fails to instruct employees, who are later employer and employees will have to found to be statutory supervisors, about No Right to NLRB Review of express or formulate their views about the rules regarding lawful campaign Post-Election Disputes the pros and cons of unionization, communications and the need to avoid A party’s right to have the NLRB and to communicate facts regarding attending union meetings, runs the risk review any decisions by a regional union representation. For this reason, of election objections and unfair labor director or an administrative law employers may wish to prepare certain practice charges that will invalidate the judge regarding post-election disputes draft communications in advance in the election results. will be eliminated. NLRB review of event a petition is ever filed. One particularly frustrating aspect post-election disputes will become The limited time to communicate with of the new rule is that while the time discretionary. employees, however, is just one burden period between a petition and an employers will face in opposing a election has undoubtedly shortened, Electronic Filing of Petitions and union petition. With the representation the overall timeframe for processing Other Documents Permitted hearing normally opening within eight election cases to conclusion may not be Petitions and other documents will days from the service of the notice of significantly impacted. The elimination be permitted to be filed electronically, hearing by the regional director, and of many of the pre-election procedures rather than by hand or regular mail. a detailed position statement setting – particularly the opportunity to present forth all of the employer’s positions as While the Board did not dictate any evidence with respect to voter eligibility to the unit due no later than noon on timeframe for the conduct of an or inclusion – may ultimately result the business day preceding the date of election, during the first round of in more post-election litigation and the hearing, an employer also will face proposed rulemaking, then Member adjudication. difficulties in determining what position Brian Hayes indicated that the to take as to the appropriateness of a In light of the proposed rules, an expedited election process would result proposed unit, as well as over which employer is best advised – as always – to in elections taking place between 10 employee classifications should be maintain positive employee relations to and 21 days after the filing of a petition, included. An employer that has minimize the risk of a union-organizing as contrasted with the current 38 to 45 not determined, in advance, what petition being filed. Moreover, rather day timeframe. bargaining unit(s) it would consider than wait until after a petition is filed, Next Steps/Potential Challenges appropriate at each of its locations, and an employer may wish to prepare, which employees should be included well in advance, its position as to More legal challenges to the new rules and excluded from those units, likely appropriate bargaining units and draft are anticipated, and it appears likely will miss issues and arguments that can communications to employees on that the Chamber of Commerce and the or should be raised at hearing. unionization. Coalition for a Democratic Workplace, among others, will again file suit. Such An employer may also find that the challenges will likely seek a declaration persons best capable of relaying its TheMonthly Report is the official that the rule is contrary to the National message, front-line supervisors, are in member publication of the limbo as to whether they are or are not Labor Relations Act and the First and Illlinois Food Retailers Fifth Amendments to the Constitution. excluded from the unit as statutory supervisors. Such a situation could Association 1919 S. Highland Ave. Consequences for Employers force an employer to operate during a campaign based on its best guess as to Lombard, IL 60148 The new rules shorten the time period certain individuals’ supervisory status, a Telephone: 630-627-8100 from petition to election to three risky proposition. For example, without Toll free in IL: 800-624-6712 weeks or less, creating, in the words the benefit of a stipulation or a finding of dissenting Board members Philip www.ilfood.org

We encourage all members to begin the process of IFRA has available an on-line food handler providing training for your employees that work with training and assessment program. This unpackaged food, food equipment or utensils, or food effective low cost on line program meets contact surfaces. All food handlers working in non- all the requirements of the new state restaurants shall have training completed by July 1, 2016. certification program.

The online training program is available through a link on the Association’s website under the Food Sanitation Course Tab at: www.ilfood.org.

Important Dates IFRA Program February 8-11 Wednesday, May 6 Spotlight National Grocers IFRA Mid-Year Meeting WorldPay: Association Annual Retail Day at the Capitol IFRA-Recommended Convention Springfield Electronic Payment and Las Vegas Tuesday, May 19 Credit /Debit Processor The Association has endorsed WorldPay Friday, March 20 GMA-IFRA Golf Outing since 2011. As one of the largest payment GMA Bowling with the Silver Lake Country Club processors, WorldPay is chosen by food Industry Orland Park retailers around the world. IFRA members have received better service and far superior Brunswick Zone Tuesday-Thursday, June 8-11 Woodridge reports than they have received from any FMI Future Connect other processor. Wednesday, April 15 - McCormick Place, Chicago Easily and affordably accept your customers’ preferred payment options, including Thursday April 16 Wednesday, October 7- FMI-NGA-FIAE credit, pin-secured debit, PayPal, checks, Thursday October 8 gift cards, and EBT. Washington Conference IFRA-GMA Annual Washington D.C. l Seamless support and integration with Conference industry – leading point-of-sale plat- Tinley Park Convention Center forms Tinley Park, IL l 24/7 technical assistance, plus secured online reporting for real time account information Call today for special discounted IFRA pricing: IFRA office Russ Coomans – 630-627-8100; WorldPay, Nenif Michael, 773-571- 6327.