Low unemployment and high housing costs add to the headaches of attracting and keeping the right employees. Even with minimum wage rising in Southern California to $13.50 per hour, a full-time employee would be hard-pressed to find affordable housing in Los Angeles county.
“Finding talent is our biggest hurdle,” says Dana Thomas, president of Index Fresh, Inc., a shipper and importer of avocados in Riverside. “It’s a long-term issue in the produce business—we’re always looking for people. There are opportunities in sales, operations, administration, and sourcing. Being located in Riverside is an advantage, because of the lower cost of living.”
Better yet, he says, “You don’t have all the traffic and we’re closer to Palm Springs. The quality of life is good out here, and the dollar stretches farther than in L.A.”
Despite offering health benefits and plenty of opportunity, Ray Davis, president of Pacific Sun Distributing Inc., Vernon, CA, laments that he has to hire four or five people for each open position. “Most people don’t last the week. Unfortunately, many don’t recognize that if they hang in there and take the time to learn, doors will open and you can climb the ladder. This is a great industry where there is opportunity to make a good living.”
Francisco Clouthier, president of Maui Fresh International LLC, agrees that the shortage of workers makes doing business in Los Angeles challenging, especially at a wholesale market. “People don’t like to work so early and so long — now they have more options.” Even if the pay is similar in retail or foodservice, he believes that work is easier than at a terminal market.
“As a result,” he says, “there’s a high turnover for drivers and warehouse employees. We used to have employees who would work for us as a second job, but now they have long shifts and overtime.
To attract and keep workers, we have to offer competitive pay. We’ve had to let go of some business because can’t charge enough to compensate. The option is to open a warehouse over the border in Tijuana, but I thought better of it because you lose a large measure of control.”
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full article.
