UNITE NOW - UFCW Local 770

VOICE
Volume 63
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PRESIDENT’S MESSAGE
Working families and the state of
California won the November
elections, and UFCW members
made the difference.
This year, we registered more
voters, got more people out to
vote, and had more participation
in the Active Ballot Club than
ever before. This gave us the
strength we needed going into
the elections.
Thanks to the efforts of union
and UFCW members, California
bucked the national trend and
held the line for working families.
That means our state, and
working families and union
members in particular, dodged
the bullet.
Had Republicans like billionaire
Meg Whitman won, we’d be
facing a hostile government
intent on punishing workers and
rewarding millionaires.
Instead, we elected a roster of
legislators and Constitutional
officers that will make working
families like our members a
priority.
Social Security Fraud in an
attempt to gain an advantage
over us. They also entered into
an illegal “mutual assistance
pact” that allowed them to
extend the lockout and strike.
Thanks to the aggressive efforts
of Jerry Brown and others,
management was prosecuted and
prevented from using these
underhanded tactics in the future.
Now our allies like Jerry Brown
are in office, and we can count on
their help and protection as we
go into our 2011 contract
negotiations. Thankfully, we
elected an Attorney General,
Kamala Harris, who will continue
Jerry’s work and support for
working families.
That’s why elections are important.
And why this election in
particular was such an important
victory for UFCW members.
Thank you for your efforts with
the Active Ballot Club, the
election, and your efforts getting
ready for the upcoming
negotiations.
This is a critical advantage for us
in our upcoming negotiations:
we benefit greatly from elected
officials that will support us by
vigorously enforcing labor law,
and making sure management
isn’t breaking the law—again.
PRESIDENT RICK ICAZA has
been a member of Local 770 since
1956. He has served on the union’s
staff as a Research Assistant,
Organizer, Business
Representative and SecretaryTreasurer. He was elected
President in 1981.
You’ll remember that during the
2003-4 lockout and strike,
management violated federal
labor law and Ralphs committed
(1)
Issue 4
THE VOICE
Dec. 2010
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CONTENTS
President’s Message . . . . . . . . . . . . . . . . . . 1
President Rick Icaza
Secretary-Treasurer’s Message . . . . . . . 3
Thank You, UFCW! . . . . . . . . . . . . . . . . . . . . . 4
It’s Time To Get Ready . . . . . . . . . . . . . . . . 5
Kathy Finn
Icaza Foundation . . . . . . . . . . . . . . . . . . . . . 6
UFCW Scholarship Recipients . . . . . . . . 7-8
UFCW Scholarship Applications . . . . . . . . 9
Consumer Outreach . . . . . . . . . . . . . . . . . . 11
Ticket Information . . . . . . . . . . . . . . . . . . . 12
Year-End Financial Reports . . . . . . . . 13-14
Personal Injury information . . . . . . . . . . 17
Mensaje del Presidente . . . . . . . . . . . . . . 18
Issue 4
THE VOICE
Dec. 2010
(2)
SECRETARY-TREASURER’S MESSAGE
Secretary Treasurer
JOHN GRANT
March, 2011.
That’s when our food contract
expires. You’ve seen the buttons.
Maybe you helped pass out bags
to consumers. It might have
seemed a long way off.
Well, it isn’t anymore.
Our food contract expiration is
right around the corner, and this
is likely going to be another
drawn-out fight. We (Members)
need to prepare mentally,
emotionally, and financially for a
long negotiation.
More than a few negotiations
around the country have settled
or are in process, and virtually
none were completed before
contract expiration. Most are
with the same big corporate
employers we have in Southern
California.
In Arizona, where UFCW 770
sent members and organizers to
help our brothers and sisters in
Local 99, the negotiations went
on for nearly a year after their
contract expired.
In fact, there hasn’t been a single
fair contract settled recently that
wasn’t preceded by a strike
authorization vote by union
members. Management has proven
again and again that we won’t get
a fair deal unless membership is
willing to walk out.
That’s unfortunate, but that’s the
way it is. Management is
telegraphing their strategy, and
we need to be prepared for it.
How?
Issue 4
March, 2011. Its right around the
corner. Get ready. The true index
of our strength is the intensity of
our voice. SPEAK OUT FOR
RESPECT.
The best way is by talking to your
fellow members and employees
about the need for solidarity in
the upcoming negotiations. We
need to stick together if we want
to get a fair contract. We need to
raise our voice—collectively and
individually.
Recent AFL-CIO polls and
research show the most effective
way to rally members is by
hearing from other members.
Union members step into action
when they are personally asked
by another union member to do
so. When you talk to another
JOHN GRANT joined UFCW Local
770 in 1980 when his Local 563 of
the Amalgamated Meat Cutters and
Butcher Workman of North America
(AMC&BWNA) merged with Local
770. He started work as a Union
Representative in 1985, was
appointed as In-House Counsel in
1992, became Packinghouse Director
in 2002 and now serves as
Secretary-Treasurer.
Seattle’s Local 21 just ratified a
fair contract, but it took them six
months after the expiration of
their contract and a nearunanimous strike vote.
(3)
employee in your store, it is a
much more effective means of
communication than a phone call
or flyer in the mail. And, frankly,
it’s the best way for us to win.
THE VOICE
Dec. 2010
“THANK YOU, UFCW LOCAL 770!”
All our Local 770-endorsed statewide candidates
were elected in November, and all have sent our
members and union a sincere thank you for our
crucial support:
Jerry Brown
Governor
Gavin Newsom
Lt. Governor
Kamala Harris
Attorney General
John Chiang
Controller
Dave Jones
Insurance Commissioner
Debra Bowen
Secretary of State
Issue 4
THE VOICE
Dec. 2010
(4)
FOR THE RECORD
It’s time to get ready:
Food Contract expiration is right around the corner!
Director of Research,
Bargaining and Education
KATHY FINN
The Food And Meat Agreement
covering over 20,000 members
who work for Vons, Ralphs and
Albertsons is scheduled to expire
on March 6, 2011 -- that's just
three months away. In order for
us to achieve the best contract
possible, we must all be prepared
for lengthy negotiations and a
difficult fight.
The Teamsters in Southern
California and other UFCW
members around the U.S. have
reached settlements with these
same employers over the past
several months after prolonged
negotiations and difficult contract
campaigns. We know that our
negotiations will be difficult as
well as we will need significant
increases in employer
contributions in both our pension
plan and our health plan and we
must continue to close the wage
gap between the newer and more
senior members.
Now is a good time to make sure
you are prepared financially for a
contract fight. You should not
make any large purchases for the
next several months and try to
pay off any outstanding debts
that you have. You should also
make sure you understand the
issues that will be decided in
these negotiations. You can do
this by attending a union meeting
or speaking to your union
representative or store steward.
Finally, you should get involved
in some of the contract actions
that we have planned. You can
start to get ready for negotiations
by wearing your March 2011
button and helping hand out
reusable grocery bags and
collecting pledge cards of
support from customers.
KATHY FINN joined Local 770
in 1997 and serves as Director of
Research, Bargaining and
Education.
(5)
Issue 4
THE VOICE
Dec. 2010
2010 ICAZA FOUNDATION ANNUAL
CHARITY GOLF TOURNAMENT
140 Members participated in this
year’s event, helping raise
$124,000 for Leukemia research.
Issue 4
THE VOICE
Dec. 2010
(6)
CONGRATULATIONS UFCW
Joseph T. Desilva
Scholarship
Jaguelyn
Manougian
$3,000
University of
Southern
California
Baback
Salehani
$3,000
University of
Southern
California
Kathleen
Lo
$2,500
University of
Southern
California
Brittney
Wong
$2,500
University of
Southern
California
Jacinta
Nguyen
$2,500
University of
Southern
California
Jason
Lebowitz
$3,000
University of
Southern
California
Issue 4
Sandra
Delgado
$1,000
CA State
University,
Pomona
Arti
Desai
$2,000
University of
California,
Irvine
Jordan
Godfrey
$1,000
Northern
Arizona
University
Kourtney
Gonzalez
$1,000
San Diego State
University
Audriana
Gonzalez
$1,000
San Diego State
University
Alice
Wu
$2,500
University of
Southern
California
(7)
Michael
Bond
$2,000
CSU
Sonoma
Andrea
Hernandez
$1,000
Pierce College
THE VOICE
Dec. 2010
SCHOLARSHIP WINNERS!
Local 770/DHA Scholarship
Grace
Hong
$2,000
Harvard
Matthew
Irons
$2,000
University of
California,
Berkeley
Maren
Lopez
$1,000
University of
California,
Berkeley
Stacey
Rauen
$2,000
University of
California,
Berkeley
Michaellne
Mendoza
$1,000
California State
University, L.A.
Lynisha
Nash
$2,000
University of
CA, Riverside
Christopher
Ogden
$1,000
College of the
Canyons
Issue 4
Consuelo
Ramos
$2,000
CA State
University,
Dominguez Hills
Amanda
Timoney
$2000
University of
California,
Santa Cruz
Paige
Romero
$2,000
University of CA,
Santa Barbara
Jessica
Tondreau
$2,000
College of the
Canyons
Jordan
Rush
$2,000
Antelope Valley
College
Stephanie
Torres
$1,000
University of
CA, San Dieg
Nancy
Saavedra
$1,000
Mount St. Mary’s
College
Daneil
Trujillo
$2,000
El Camino
Junior College
Brian
Santisaranyu
$1,000
CA State
University,
Northridge
Clarissa
Valencia
$1,000
University of
California,
Los Angele
Brandi
Strong
$1,000
Moorpark
College
Dana
Williams
$1,000
CA State
University,
Bakersfield
Alexis
Squires
$2,000
Long Beach
University
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To apply for next year’s
scholarships, fill out and
submit the application on
the following page.
Dec. 2010
(8)
RULES AND DETAILS FOR 2011
SCHOLARSHIPS
Local 770 College Scholarships for 2011
To apply for the Union’s scholarship
programs, please use the application
request forms published here.
Scholarships are open to active
members affiliated with Local 770
from September 2010 through
September 2011, their spouses,
parents and children. You must be an
active member or a dependent of an
active member in good standing,
from September 2010 to September
2011 to be eligible for a Local 770
scholarship.
Requests for applications must be
received in the Union’s office by
March 1, 2011. Completed
applications must be received by
March 31, 2011. No exceptions to
these deadlines will be permitted.
All applicants chosen must attend an
oral interview that will be conducted
on a Saturday in June 2011.
Applicants who do not attend the
oral interview will be automatically
disqualified. No exceptions.
The Local 770/
Dental Health
Associates
Scholarship
The Joseph T. De
Silva Scholarship
Awards are issued to full-time college
students, graduate or undergraduate.
Applicants are judged based on
essays they submit, past records and
achievements, plus an oral interview
with the Local 770 Scholarship
Committee. Eligible full-time students
(12 units or more/ undergraduate; 6
units or more/ graduate), in a degree
program at any accredited college or
university may apply.
Each year Dental Health Associates
makes a major contribution to this
scholarship program. DHA, which
provides dental services at locations
throughout 770’s jurisdiction, is
directed by Victor S. Sands, DDS, MS.
Local 770 members and their families
express their very special thanks to
Dr. Sands for his continuing interest
and support.
Local 770/DHA Scholarship
Application Request
c/o UFCW LOCAL 770, 630 Shatto Place, L.A. CA 90005
This program is for students
attending USC and is funded by a
grant from the late founder of the
Local 770 Joseph T. Desilva and from
memorial gifts made in his name.
Awards are issued to full-time college
students, graduate or undergraduate.
Awards are issued based on essays,
past records and achievements as
well as an interview with the
scholarship committee. Eligible
students should be full time (12 units
or more/ undergraduate; 6 units or
more/graduate) and in a degree
program attending USC.
REMINDER: Requests for 2011
applications for the Joseph T.
DeSilva and Local 770/DHA
scholarships must be received at the
Union’s offices by March 1, 2011.
Application to the Joseph T. DeSilva
Scholarship program is strictly for
students attending USC. But those
attending USC may also apply for
Local 770/DHA scholarships.
USC STUDENTS ONLY
Joseph T. DeSilva Scholarship –
Application Request
c/o UFCW LOCAL 770, 630 Shatto Place, L.A. CA 90005
Applicant’s Full Name
Applicant’s Full Name
Applicant’s Social Security Number
Applicant’s Social Security Number
Mailing Address
Mailing Address
City, State and Zip
City, State and Zip
Home Phone
Cell Phone
Home Phone
Cell Phone
Relationship to Member (son, daughter, parent, spouse)
Relationship to Member (son, daughter, parent, spouse)
Full Name of Member
Full Name of Member
Member Social Security
Member Social Security
Member Store and Store Number
Member Store and Store Number
School Attending in Fall
I am a member/ dependent of Local 770 in good standing. In order to be
eligible for the scholarship, I will remain in good standing from September
2010 through September 2011 and in the Fall will be enrolled as a full-time
student (12 units or more/undergraduate; 6 units or more/ graduate).
Signed by Applicant in Acceptance of the Above.
(9)
School Attending in Fall
I am a member/ dependent of Local 770 in good standing. In order to be
eligible for the scholarship, I will remain in good standing from September
2010 through September 2011 and in the Fall will be enrolled as a full-time
student (12 units or more/undergraduate; 6 units or more/ graduate).
❏ I am enrolled at USC ❏ I have been accepted by USC
❏ I plan to enroll at USC ________ (month/year)
Signed by Applicant in Acceptance of the Above.
CONTRACT CAMPAIGN CONSUMER
OUTREACH BEGINS
UFCW has always counted on
the support of consumers, and
ahead of our contract
negotiations we are distributing
free reusuable shopping bags to
show our gratitude. At the same
time we’re asking consumers to
sign a pledge card supporting
grocery workers in the upcoming
negotiations.
Pitch in and do
your part.
Help tell consumers “thank you”
—volunteer to help hand out our
thank you gift. Talk to your union
representative.
(11)
Issue 4
THE VOICE
Dec. 2010
Member Ticket Specials
Ticket Sales
Mail Order Sales
630 Shatto Pl, Los Angeles (213) 487-7070 Ext. 7200
25949 Belle Porte, Harbor City (310) 784-5340
43535 17th St W, Ste 303, Lancaster (661) 726-4656
Monday thru Friday, 8:30 am - 4:30 pm
Cash, money orders, Visa or Mastercard
UFCW LOCAL 770
P.O. Box 369
Harbor City, CA 90710
Send money order only
Venue
Member Price
Credit Card
Internet Sales
www.ufcw770.org
Internet sales-mail delivery
3-7 days, plus postage
Reg. Price
For information on Movie Ticket Specials Call our Local Office at (213) 487-7070 Ext. 7200
CONDENSED FINANCIAL STATEMENTS 2009
Independent
Auditors’
Report
Ricardo Icaza, President
United Food and Commercial
Workers Union, Local No. 770
630 Shatto Place
Los Angeles, California 90005
Dear Mr. Icaza:
We have audited, in accordance
with auditing standards generally
accepted in the United States of
America, the statement of
financial position of the United
Food and Commercial Workers
Union, Local No. 770 as of
December 31, 2009, and the
related statements of activities
and cash flows for the year then
ended (not presented herein);
and in our report dated July 30,
2010, we expressed a qualified
opinion on those financial
statements. Local 770 has elected
not to adopt all provisions of
Statement of Financial
Accounting Standards No. 117.
See Note 2-P.
In our opinion, except for not
reporting expenses by their
functional classifications and
organization-wide revenues and
expenses, the information set
forth in the accompanying
condensed financial statements is
fairly stated in all material
respects in relation to the
financial statements from which
it has been derived.
Miller, Kaplan, Arase & Co.,
LLP
November 30, 2010
(13)
Issue 4
THE VOICE
Dec. 2010
Issue 4
THE VOICE
Dec. 2010
(14)
UNITED FOOD AND COMMERCIAL WORKERS UNION, LOCAL
NO. 770 • NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2008
NOTE 1 - DESCRIPTION OF THE ENTITY
United Food and Commercial Workers Union, Local No. 770 (the “Union”)
is a chartered local of the United Food and Commercial Workers
International Union. The Union is an unincorporated, tax-exempt
association with a membership of approximately 32,500 within Southern
California. The purpose of the Union is to organize workers, within its
jurisdiction, into a single organization for thepurposes of collective
bargaining of wages, benefits and working conditions and improving the
education and social awareness of its membership. The Union's primary
sources of revenues are dues and initiation fees paid by its members. Effect
July 1, 2009, United Food and Commercial Workers Union Local No. 1036
(“UFCW Local 1036”), including its wholly-owned Local 1036 Building
Corporation, was merged into the Union. See Note 5.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounts of the Union were maintained on a modified cash basis of
accounting; however, for financial statements purposes, entries have been
applied to the cash basis accounts to placethem on the accrual basis. The use
of the accrual basis properly recognized revenues when earned or otherwise
available and expenses are recognized when incurred.
B. Funds
The accounting records of the Union are segregated into the following funds:
General Fund
General operations of the Union.
Preparedness Fund
The General Fund allocates $.50 per member per month to this Fund for
expenditures to protect members of this and other local unions. The
Executive Board determines the level of this Fund.
Building Fund
Accounting segregation of the General Fund, to record the purchase, improvement,
operation and maintenance of the real properties owned by the Union.
To maintain accounting by the above-established funds, certain interfund
transactions are reported on the by-fund statements of activities, which
must be eliminated to determine organization-wide revenues and expenses.
The General Fund is charged interfund rent by the Building Fund at an
established per square foot rate for the area occupied by the Union. The
General Fund allocates $.50 per member per month of dues to the
Preparedness Fund.
C. Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results may differ from those estimates.
D. Revenues from Members
Dues from members are recognized as income over the period to which they
apply. Initiation fees, reinstatement fees and assessments are recognized as
income when received.
E. Rental Income - Tenants
The Union leases a portion of its buildings’ office space located at 630 Shatto
Place, Los Angeles, California to non-affiliated organizations. The Union
also leases a portion of its building office space located at 816 Camarillo
Sprints Road, Camarillo, California, to non-affiliated organizations. Future
minimum rental income as of December 31, 2009 is as follows:
Camarillo Property
Total
Year Ending December 31, Shatto Property
2010 . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,642. . . . . . . . . . . . . . . . . $126,497. . . . . . . . . . . . . . . . $ 224,737
2011 . . . . . . . . . . . . . . . . . . . . . . . . . 116,823. . . . . . . . . . . . . . . . . . 88,742 . . . . . . . . . . . . . . . . . 205,565
2011 . . . . . . . . . . . . . . . . . . . . . . . . . 115,355. . . . . . . . . . . . . . . . . . 71,487 . . . . . . . . . . . . . . . . . 186,842
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . 38,192 . . . . . . . . . . . . . . . . . . 54,132 . . . . . . . . . . . . . . . . . . 92,324
– . . . . . . . . . . . . . . . . . 2,259 . . . . . . . . . . . . . . . . . . . 2,259
2014 . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTALS
$368,610
$343.117
$711,727
F. Other Revenues
Investment income, reimbursements and other revenues are reported on the
accrual basis.
G. Per Capita Taxes
Liabilities reported for amounts due are based on collections from members.
H. Other Expenses
All other expenses are reported on the accrual basis except for a nominal
amount of recurring monthly expenses.
I. Cash and Cash Equivalents
Cash and cash equivalents consists of cash and gift certificates on hand and
cash deposited with financial institutions in checking accounts, savings accounts,
money market accounts, money market funds and time certificates of deposit.
J. Investments
Effective January 1, 2008, accounting principles generally accepted in the
United States of America require additional disclosures about fair value
measurement and establish a framework for measuring fair value. That
framework provides a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurements) and the lowest priority to
unobservable inputs (level 3 measurements). The three levels of the fair
value hierarchy are described below:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices
for identical assets or liabilities in active markets that the Union has the
ability to access.
Level 2: Inputs to the valuation methodology include:
1. Quoted prices for similar assets or liabilities in active markets;
2. Quoted prices for identical or similar assets or liabilities in inactive markets;
3. Inputs other than quoted prices that are observable for the asset or liability;
4. Inputs that are derived principally from or corroborated by observable
market data by correlation or other means.
Level 3: Inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
The asset’s or liability’s fair value measurement level within the fair value
hierarchy is based on the lowest level of any input that is significant to the
fair value measurement.Valuation techniques used need to maximize the
use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets
measured at fair value.
1. U.S. Government Securities: Short-term investments in United States
treasury bills and stripped coupon bond are reported at amortized value.
Investments in United States treasury notes are valued based on quoted
market prices or using matrices of trades in similar securities.
2. Common Stocks: Valued at the closing price reported on the active
market on which the individual securities are traded.
3. PIMCO Low Duration Fund: Valued at the net asset value of shares
held by the Union at year end.
4. Real Estate: Valued at the value as appraised by an independent
certified appraiser. The methods described above may produce a fair
value calculation that may not be indicative of net realizable value or
reflective of future fair values. Furthermore, while the Union believes its
valuation methods are appropriate and consistent with other market
participants, the use of different methodologies or assumptions to
determine the fair value of certain financial instruments could result in a
different fair value measurement at the reporting date.
The following table sets forth by level, within the fair value hierarchy, the
Union’s assets at fair value as of December 31, 2009:
Level 1
Level 2
Level 3
Total
U.S. Government Securities . $ 0-00 . . $2,382,773 . . . $ 0-00 . . $2,382,773
Common Stocks . . . . . 1,395 . . . 00-0000 . . . 00-00 . . . . 1,395
- . . 1,357,559
PIMCO Low Duration Fund 1,357,559 . . . 00-0000 . . .
Real Estate . . . . . . .
- . . . . . - . . 1,050,000 . . . 1,050,000
$1,358,954 . . . . $2,382,773 . . . $1,050,000 . . . $4,791,727
The table below sets forth a summary of changes in the fair value of the
Union’s level 3 assets for the year ended December 31, 2009.
Balance, January 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,110.000
Purchases of improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,160
Depreciation recognized on real estate investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,635)
Unrealized loss related to real estate still held at reporting date . . . . . . . . . . . . . . . . . . . . (63,525)
Balance, December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,050,000
Investment purchases and sales are recorded on the trade date basis.
Dividends and interest income are recorded on the accrual basis. Unrealized
appreciation or depreciation in the market values of investments is reported
as “Unrealized Appreciation (Depreciation) of Investments.”
The following summarizes the carry values and market values of investments
at December 31, 2009:
General Fund
Interest
Face Value Government
Debt Securities
Rate %
Value
N/A
$1.358,000 United States Treasury Bills
1,000,000 United States Treasury Notes 1.750
21,000
United States Treasury Stripped N/A
TOTALS - GOVERNMENT DEBT SECURITIES
General Fund (Continued)
No. of Shares
Common Stocks
2
American Stores, Inc.
5
Arden Group, Inc.
Bank of America Corp.
4
1
CVS Caremark Corp.
1
Kroger Co.
1
Interstate Dept Stores
1
JC Penney Company, Inc.
Jewel Companies, Inc.
1
3
K-Mart Corp.
1
Manville Corp.
3
Pacific Lighting Co.
3
Pepsico
1
Rite Aid Corp.
3
Safeway, Inc.
Skaggs Companies, Inc.
3
2
Standard Oil Co.
1
Supervalu, Inc.
1
Tenneco, Inc.
1
Western Alliance Bancorp.
1
Winn-Dixie Stores, Inc.
TOTALS - COMMON STOCKS
Mutual Funds
131,930
PIMCO Low Duration Fund
TOTALS - GENERAL FUND
Maturity
Date
04/01/10
03/31/10
08/15/10
Market
Value
$ 1 ,357,559
1 ,004,258
2 0,956
$ 2 ,382,773
Carry
Value
$ 1 ,357,559
1 ,004,258
2 0,956
$ 2 ,382,773
Market Value
$25
478
60
32
20
–
27
13
2 50
–
5
1 82 6
2
64
38
1 54
13
18
4
10
$ 1 ,395
Carry Value
$66
1 08
26
34
20
26
52
27
83
28
15
0
4
61
74
63
35
26
26
26
$ 8 60
$ 1 ,357,559
$ 3 ,741,727
$ 1 ,350,296
$ 3 ,733,929
BUILDING FUND
Real Estate Holdings
1,050,000
751,159
TOTAL - INVESTMENTS
$ 4,791,727
$ 4,485,088
K. Property and Equipment
Property and equipment are stated at cost. Depreciation is determined for
related groups of assets under the straight-line method, based upon their
estimated useful lives. Minor renewals or replacements, and maintenance
and repairs are expensed. Major replacements and improvements are
capitalized. Depreciation is computed over the estimated useful lives of
assets as follows:
Land Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 40 years
Building and Improvements . . . . . . . . . . . . . . . . . . . . . . . 5 - 40 years
Furniture and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 3-10 years
Computer Hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 years
Computer Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 years
Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7 years
L. Tax-Exempt Status
No provision for Federal or state income tax is made. The Union has
received tax-exempt status from the Federal government under a 501(c)(5)
group exemption letter with the International Union and from the State of
California under Revenue and Taxation Code Section 23701a.
M. Health and Welfare Benefits
The Union contributes to the United Food & Commercial Workers Unions
and Food Employers Benefit Fund and to the United Food and Commercial
Workers International Union (on behalf of the United Food and
Commercial Workers Health Insurance Plan for Retirees) in which its
employees participate.
N. Pensions
The Union contributes to the Southern California United Food and
Commercial Workers Unions and Food Employers Joint Pension Trust Fund
for certain employees. The Fund may have a liability for unfunded vested
benefits at December 31, 2009 requiring assessment of withdrawal liability
from contributing employers withdrawing from the Fund; however, the
management of the Union has expressed no intent to withdraw from the
Fund and the withdrawal liability to the Union, if any, has not been
computed. Certain employees of the Union may elect to contribute to
defined contribution plans with 401(k) features sponsored by the United
Food and Commercial Workers International Union. The Union matches
100% of the employee’s contributions to these plans up to 4% of
compensation. In addition, certain employees of the Union participate in a
multiple employer defined benefit pension plan sponsored by the United
Food and Commercial Workers International Union. The Union makes no
employer contributions to this plan, but participating employees contribute
4% of their salaries to the Plan. Benefits provided by this Plan are based on
the participant’s age, length of service and compensation.
O. Transactions with Related Parties
The Union is reimbursed for certain expenses incurred in providing services
to its members on behalf of related employee benefit plans. Reimbursements
from related employee benefit plans are based on mutually agreeable
reimbursement formulas. The Union received the following reimbursements
from related employee benefit plans for the year ended December 31, 2009:
Southern California Drug Benefit Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 218,179
United Food & Commercial Workers Unions
and Food Employers Benefit Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 966,245
Southern California United Food & Commercial Workers
Unions and Food Employers Joint Pension Trust Fund ...................................................112,135
TOTAL .............................................................................................................$1,296,559
The Union received the following reimbursements from United Food and
Commercial Workers International Union for the year ended Dec. 31, 2009:
General Fund:
Salaries..................................................................................................................$79,992
Organizing ................................................................................................................24,000
Meetings, Conferences and Conventions .........................................................................13,663
TOTAL ...............................................................................................................$117,655
The Union received the following reimbursements from United Food and
Commercial Workers Region 8 States Council for the year ended Dec. 31, 2009:
General Fund – Organizing.........................................................................................$79,992
The Union has established the Local 770 United Food and Commercial
Workers Political Action Committee (PAC) to support or oppose candidates
for state and local office and to further the goals of organizing and
bargaining within the State of California. The General Fund contributes
$0.25 per member per month to the PAC. The total contributions made to
the PAC for the year ended December 31, 2009 was $85,556.
P. Omission of Certain Financial Information
Management of the Union has elected to omit the reporting of expenses by
their functional classifications and organization-wide revenues and expenses
in its financial statements. Accounting principles generally accepted in the
United States of America require that financial statements for not-for-profit
organizations report information about expenses by their functional
classifications and organization-wide revenues and expenses. The presentation
of the Union’s financial statements without this information does not change
the amounts of assets, liabilities, net assets and the change in net assets and
cash flows reported on the Union’s financial statements. In the opinion of
management, its decision not to include this information does not affect the
usefulness of the financial statements.
Q. Subsequent Events
Management has evaluated subsequent events through July 30, 2010, the
date on which the financial statements were available to be issued. There
were no material subsequent events that required recognition or additional
disclosures in these financial statements.
NOTE 3 - GENERAL INFORMATION
A. Accrued Vacation and Retirement Bonus
Employees of the Union are entitled to compensated vacation absences of 2
through 5 weeks per year depending on their length of service. Upon
retirement, certain employees are eligible for a retirement bonus based upon
compensation and length of service. The amounts of accrued liabilities were
computed based upon provisions of the plans. The current portion (amounts
payable within one year) is an estimate of anticipated utilization.
December 31, 2009
Estimated Current Liability
Total Liability
Accrued Vacation . . . . . . . . . . $1,424,299 . . . . . . . . . . . . . . . $450,700
Retirement Bonus . . . . . . . . . . . 328,520 . . . . . . . . . . . . . . . . 24,403
TOTALS . . . . . . . . . . . . . . $1,752,819 . . . . . . . . . . . . . . . $475,103
B. Obligations Under Operating Leases
The Union has entered into lease agreements for the leasing of office
equipment as follows:
Commencement Date
Term
Monthly Payment
Postage Equipment (Shatto) . . . . . . September 2005 . . . 54 months . . . . . . $ 1,090
Postage Equipment (Harbor) . . . . . . January 2006 . . . . . 69 Months . . . . . . . $494
Postage Equipment (Camarillo) . . . . . September 2004 . . . . 72 Months . . . . . . . $411
Postage Equipment (Camarillo) . . . . . March 2009 . . . . . 55 Months . . . . . . . $800
Postage Equipment (Arroyo Grande) . . . January 2008 . . . . . 51 Months . . . . . . . $268
Copier (Shatto) . . . . . . . . . . August 2007 . . . . . 36 Months . . . . . . . $2,035
Color Copier (Shatto) . . . . . . . . August 2007 . . . . . 36 Months . . . . . . . $549
Copier (Shatto) . . . . . . . . . . December 2009 . . . . 36 Months . . . . . . . $538
Copier (Food Trust) . . . . . . . . . November 2007 . . . . 36 Months . . . . . . . $482
Copier (Camarillo) . . . . . . . . . June 2009 . . . . . . 60 Months . . . . . . . $517
Copier (Camarillo) . . . . . . . . . June 2009 . . . . . . 60 Months . . . . . . . $257
Copier (Camarillo) . . . . . . . . . June 2009 . . . . . . 60 Months . . . . . . . $550
Copier (Arroyo Grande) . . . . . . . December 2008 . . . . 60 Months . . . . . . . $277
Copier (Arroyo Grande) . . . . . . . December 2008 . . . . 60 Months . . . . . . . $146
The Union also entered into a three year lease agreement effective July 1,
2009, for office space in Bakersfield, California to conduct its operations.
The following schedule represents the minimum future rental payments due
on non-cancelable operating leases with terms in excess of one year:
Office Space
Office Equipment
Total
Year Ending December 31,
2010 . . . . . . . . . . . .$ 13,400 . . . . . . . . .$ 79,102 . . . . . . . . .$ 92,502
2011 . . . . . . . . . . . . . .13,920 . . . . . . . . . .44,682 . . . . . . . . . .58,602
2012 . . . . . . . . . . . . . . .7,080 . . . . . . . . . .37,292 . . . . . . . . . .44,372
2013 . . . . . . . . . . . . . . . . . . . . . . .27,752 . . . . . . . . . . 27,752
. . . . . . . . .7,378 . . . . . . . . . . .7,378
2014 . . . . . . . . . . . . . . . TOTALS . . . . . . .$ 34,400 . . . . . . . 196,206 . . . . . . $ 230,606
Total expense for all operating leases for the year ended December 31, 2009
was $103,125
C. Line of Credit
The Union entered into a promissory note agreement with Wells Fargo Bank
on January 16, 2008 to obtain (for working capital purposes) up to $3,000,000
from a revolving line of credit. Under the terms of the note agreement, any
outstanding principal amount together with accrued interest is payable on
December 10, 2012. The promissory note agreement has a variable
interest rate and is subject to change based on changes in the prime rate set
from time to time by Wells Fargo Bank. The note is collateralized by the real
property located at 630 Shatto Place, Los Angeles, California. There was no
outstanding principal and interest due on the promissory note agreement at
December 31, 2009.
D. Note Payable Assumed from Local 1036 Building Corporation
Upon its merger with UFCW Local 1036, the Union assumed a note payable
in the amount of $1,214,488, payable by the Local 1036 Building
Corporation. The note was a 15-year loan with a fixed interest rate of 7.40%
and a maturity date of December 13, 2019. Monthly principal and
interest payments of $13,821 were paid on the note until December 14, 2009,
at which time the note was paid off by paying the unpaid principal balance,
accrued interest and prepayment penalty totaling $1,190,809.
NOTE 4 - CONCENTRATION OF CREDIT RISK
The Union maintains cash accounts at various financial institutions in excess
of the Federal Deposit Insurance Corporation limit of $250,000. The
uninsured balances at December 31, 2009 were as follows:
Bank Balance
Insured
Unisured
Bank of America . . . . .$1,308.002 . . . . . . . .$250,000 . . . . . . .$1,058,002
Wells Fargo . . . . . . . . . . . .682,607 . . . . . . . . .250,000 . . . . . . . . .432,607
TOTALS . . . . . . . . . . . .$ 34,4000 . . . . . . . . .$500,000 . . . . . . .$1,490,609
NOTE 5 - MERGER
On April 20, 2009, the membership of the Union voted and approved by
majority to enter into a merger with UFCW Local 1036 with the Union being
the surviving organization. The effective date of the merger was July 1, 2009.
The following assets, liabilities and net assets of UFCW Local 1036,
including the assets, liabilities and net assets of its wholly owned Local 1036
Building Corporation, segregated by fund, were transferred to the Union:
AnnSSASSETS
Total
Cash
$9,398,912
Investments
1,446
Receivables
262,093
Interfund Accounts
–
Other Assets
5,693
Property and Equipment:
Land
1,443,195
Land Improvements
966,165
Building and Improvements 3,575,312
Furniture and Equipment
247,016
Computer Hardware
56,160
Automobiles
58,869
(Less): Accumulated
Depreciation & Amortization (2,162,692)
TOTAL ASSETS
$ 13,852,169
LIABILITIES & NET ASSETS
LIABILLIABILITIES
Accounts & Expenses Payable $248,562
Payroll Deductions Payable
10,831
Exchanges Payable
37,801
Accrued Vacation and
Sick Time Payable
111,367
Rental Security Deposits
and Deferred Rental Income
34,079
Note Payable
1,214,488
TOTAL LIABILITIES
$1,657,128
NET ASSETS-UNRESTRICTED $12,195,041
TOTAL LIABILITIES &
NET ASSETS-UNRESTRICTED $ 13,852,169
General Fund
Preparedness Fund
Building Fund
$9,086,642
1,446
250,822
(238,475)
5,693
$36,838
–
–
223,995
–
$275,432
–
11,271
14,480
–
–
–
–
155,351
56,160
58,869
–
–
–
–
–
–
1,443,195
966,165
3,575,312
91,665
–
–
(176,252)
$9,200,256
–
$ 260,833
(1,986,440)
$ 4,391,080
$240,499
10,831
37,801
–
–
–
$8,063
–
–
111,367
–
–
–
–
$400,498
$ 8,799,758
–
–
$$ 260,833
34,079
1,214,488
$ 1,256,630
$ 3,134,450
$ 9,200,256
$ 260,833
$4,391,080
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UFCW 770 VOICE
ISSN 1074-8490 • Volume 62, Issue 4
Published Quarterly in March, June, September and December by UFCW Local 770
Chartered by United Food and Commercial Workers International Union , CLC.
Street Address: 630 Shatto Place, L.A. CA 90005
Mailing Address: Box 770, Hollywood CA 90078
Periodical Postage Paid at Los Angeles CA
POSTMASTER: Send address changes to VOICE, UFCW 770
Post Office Box 770, Hollywood CA 90078
Executive Editor: Rick Icaza
(17)
Issue 4
THE VOICE
Dec. 2010
VOZ
D
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7
0
MENSAJE DEL PRESIDENTE
RICARDO F. ICAZA, Presidente
En Noviembre el Estado de
California y las familias
trabajadoras ganaron las
elecciones, los miembros de la
UFCW hicieron la diferencia.
Este año, registramos a más
votantes, ayudamos a más personas
que salgan a votar y hubo más
participacion que nunca en el
Active Ballot Club. Entrando a las
elecciones, esto fue lo que nos dio
la fuerza que necesitábamos.
Gracias a esfuerzos de miembros
de diferentes uniones y los
miembros de la UFCW, California
no siguio a los demas estados de
la nacion y mantuvo la linea por
las familias trabajadoras.
Esto significa que nuestro estado y
las familias trabajadoras y
particularmente nuestros
miembros esquivaron la bala.
Si los Republicanos como la
Billonaria Meg Whitman hubiesen
ganado estuviéramos viéndonos
con un gobierno hostil con el
intento de castigar a trabajadores
y recompensar a millonarios.
Hemos elegido a muchos legisladores y oficiales constitucionales
que harán prioridad las vidas de
familias trabajadoras.
Esto será una ventaja para nosotros
en las siguientes negociaciones:
Issue 4
nos beneficiamos mucho porque
nos apoyaran rigorosamente en
hacer cumplir leyes laborales y
asegurando que las compañías no
quiebren las leyes nuevamente.
Usted recordara que durante la
huelga y cierre de tiendas del
2003-4 las companias violaron
leyes laborales federales, Ralphs
cometio fraude de seguros sociales
con la intención de ganar ventaja
sobre nosotros.
Gracias a los esfuerzos agresivos
de Jerry Brown y ortos, la administración fue procesados legalmente
y fueron prevenidos en utilizar
esta clase de tácticas en el futuro.
Ahora con nuestros aliados como
el Gobernador electo Jerry Brown
podemos contar con su ayuda y
protección cuando entremos en
negociaciones del contrato 2011.
Gracias a que elegimos a la
Cónsul General del Estado
Kamala Harris, ella continuara
con el trabajo y apoyo de Jerry.
Por eso las elecciones son muy
importantes y por eso esta
elección particularmente fue una
victoria muy importante
especialmente para los miembros
de la UFCW.
Gracias por sus esfuerzos con el
Active Ballot Club, las elecciones,
y sus esfuerzos en preparación
para las siguientes negociaciones.
THE VOICE
Dec. 2010
(18)
Periodicals
UFCW Local 770
PO Box 770 Hollywood, CA 90078
www.ufcw770.org
General Membership
Meeting
Tuesday, March 8, 2011
7 p.m. - 4th Floor
Los Angeles Office
Important
Dates!
Office Closed
Martin Luther King, Jr. Day, Monday, January 17, 2011
Presidents’ Day, February 21, 2011
Stay in touch!
Text FOOD to 68398 to get food
negotiation updates.
OFFICE LOCATIONS
Los Angeles
Main Office
630 Shatto Place – 2nd Floor
Los Angeles, CA. 90005
(213) 487-7070 or (800) UFCW770
Arroyo Grande
Camarillo
Newhall
127 Bridge Street
Arroyo Grande, CA. 93420
(805) 481-5661
816 Camarillo Springs Road,
Suite H
Camarillo, CA. 93012
(805) 383-3300
23030 Lyons Ave., #205
Newhall, CA 91321
(661) 726-4656
Harbor City
For Packinghouse Members only
1:30 to 5 p.m. • Monday - Friday
2701 Gage Ave., Suite 202
Huntington Park, CA 90255
(323) 581-2071
Huntington Park
Bakersfield
For Kaiser Members only
5000 California Ave., Suite 211
Bakersfield, CA. 93309
(661) 323-2866
25949 Belle Porte Avenue
Harbor City, CA. 90710
(310) 784-5340