NGA Calls For Comprehensive Immigration Reform

The National Grocers Association (NGA) has released a formal position statement calling for comprehensive immigration reform. The position, unanimously approved by NGA’s executive committee and board of directors, calls for immigration reform to be comprehensive, preempt state and local laws and include the following key principles:

• Border Security: U.S. borders must be secured and the rule of law must be enforced.

• Employer Verification: NGA supports mandatory E-Verify of new hires for all employers, at no cost to the employer. Employers must be afforded a strong safe harbor of protections in exchange for good faith compliance of E-Verify.

• Expanded Guest Worker Program: Expand guest worker program to include workers with skills such as bakers, butchers and foodservice, in addition to other low-skilled workers important for the supermarket industry.

• Path To Legal Status For Undocumented Immigrants And Their Children: Clear path that allows the estimated 11 million undocumented immigrants to come out of the shadows and undergo background checks and face penalties.

At NGA’s board of directors meeting in February, a task force of member companies was created to review various proposals and challenges facing the supermarket industry with the ultimate goal to develop a position on immigration reform for the association. The task force, chaired by board member Bob Ling, president and CEO of Unified Grocers, recommended a position in April that was ultimately approved unanimously by NGA’s executive committee and board.

“I appreciate the hard work of NGA’s immigration task force, a group that included representatives from both retail and wholesale companies,” Ling said. “Employers are facing an ever-growing patchwork of state and local immigration laws that further complicate a broken system. The lack of progress in developing an effective national policy has adversely impacted our customers, employees and their families. Now is the time to enact meaningful reform, and NGA and its members can play a key role in the process.”

“The immigration issue is one that directly impacts our industry,” said Peter J. Larkin, president and CEO of NGA. “NGA’s position takes a common-sense approach by addressing border security, undocumented workers and important employer provisions and protections. We look forward to working with Congress, the White House and other stakeholders to help pass comprehensive legislation that is inclusive of NGA’s position and the priorities of the independent supermarket industry.”

Food Retailers Show Support For Common Sense Nutrition Information

Grocery retailers met today with their members of Congress to continue building support for the Common Sense Nutrition Disclosure Act (House Resolution 1249), which addresses proposed chain restaurant menu labeling rules that the U.S. Food and Drug Administration (FDA) expanded to include supermarkets.

Food Marketing Institute (FMI) and National Grocers Association (NGA) food retailer and wholesaler members visited their congressional representatives to explain how, under FDA’s s proposed rule, taking a piece of fruit from a produce department and cutting it into slices for a customer would be considered “similar” to a chain restaurant. The rule contradicts state and local menu regulations and would place a regulatory burden on supermarkets that exceeds $1 billion dollars, according to a news release.

“Supermarkets are often seen as a resource to their shoppers, emphasizing nutrition and health and wellness information with their customers through wellness programs, dietitians and store tours,” said Jennifer Hatcher, FMI’s SVP of government and public affairs. “I fear we’ll witness a reverse trend in freshly prepared food offerings to more standardized, pre-packaged items if the proposed rule is enacted.”

Greg Ferrara, VP of public affairs at NGA, said, “The chain restaurant menu labeling issue has nothing to do with helping consumers make wise nutritional choices. Instead, the restaurants have been lobbying the FDA and Congress to subject food retailers to cumbersome regulations under the Affordable Care Act intended for chain restaurants that serve uniform menu items.”

The bipartisan Common Sense Nutrition Disclosure Act would ensure that grocery and convenience stores are included in the restaurant nutrition-labeling regulations only if they are primarily engaged in restaurant activity. It also provides some flexibility for those businesses that are included in the regulations, restaurants or otherwise, the release says.

Grocers Gather In Washington To Advocate On Industry Issues

Grocery retailers, wholesalers and food industry state association executives representing more than 30 states assembled in Washington, D.C., today to urge Congress to act on pro-business reforms that impact the bottom lines of supermarket retailers and wholesalers.

Members of the National Grocers Association (NGA), Food Marketing Institute (FMI) and the Food Industry Association Executives (FIAE) joined together for the annual “Day in Washington” congressional fly-in, during which grocery company executives and operators meet with their members of Congress and key Congressional staff to discuss issues of importance to the supermarket industry such as healthcare, tax reform, FDA menu labeling and swipe fees.

Regarding healthcare, the supermarket industry supports changes to the Affordable Care Act (ACA) that would increase their ability to maintain health coverage and comply with the law. Such changes include amending the ACA’s 30 hours per week, full-time employee definition to be in line with the current workforce and fair labor standards; supporting House Resolution 1254 to repeal a redundant and confusing mandatory auto-enrollment provision; and restoring the ability for customers to use their Flexible Spending Account (FSA) card for purchases of Over-the-Counter (OTC) medicines without a prescription.

Supermarket operators also are urging members of Congress to co-sponsor HR 1249, the Common Sense Nutritional Disclosure Act, bi-partisan legislation that would, in part, ensure that Food and Drug Administration (FDA) does not capture mainstream grocery stores in chain restaurant menu labeling regulations.

“Supermarkets are job-creators, employing 3.4 million workers, and they’re also inherent to the financial health of their communities, as evidenced by an average of $92 per U.S. household in weekly sales,” FMI President and CEO Leslie G. Sarasin said. “It’s great for members of Congress to hear directly from the grocers in their districts about how even the slightest nuances to legislation or regulation can impact their 1 percent profit-margin businesses.”

With Congress focused on taking up tax reform, attendees are urging their elected officials to ensure reform is fair and equitable among both C-corporations and pass-through entities such as S-corporations and LLCs, while preserving pro-growth tax provisions such as bonus depreciation and expensing. The industry believes Congress should also focus on reforming the tax code, and not try to raise revenue from other areas. The Last In, First Out (LIFO) accounting method is not a tax provision and repeal would create a new, phantom tax that does not meet the basic standards of fairness and equity, a news release says. The supermarket industry also is urging members of Congress to support the Marketplace Fairness Act (HR 684/S 336), legislation that closes a 20-year-old loophole and helps create a level playing field for brick and mortar retailers.

“The presence of the supermarket industry in Washington, D.C., this week is significant given the many important public policy issues facing our industry,” said Peter J. Larkin, president and CEO of NGA. “The momentum gained by having industry executives educate their elected officials on these issues will help keep up the pressure on Congress to take action.”

In addition, attendees of the Day in Washington are addressing the issue of credit card swipe fees, which remain one of the highest operational expenses for retailers. With no ability to negotiate or decrease these fees, the average credit card swipe fee of 2 percent is often higher than the profit margin for many transactions. The supermarket industry strongly supports swipe fee reforms through maintaining and improving debit reform and moving toward more fair and equitable credit card swipe fees.