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California ag giant the Wonderful Company suffered a setback on Tuesday in its bid to overturn a new farmworker unionization law when an appeals court tossed its lawsuit against state labor regulators.

The  decision by a three-judge panel of the 5th District Court of Appeal in Fresno leaves in place a controversial new law backed by the United Farm Workers that was meant to boost organizing in a heavily immigrant workforce. The law allows farmworkers to signal their support for union representation using a signed card, bypassing the traditional in-person, secret-ballot election usually held on the employer’s property.

The Wonderful Company — owner of the Wonderful Pistachios brand and Fiji Water, Pom pomegranate juices and Halos oranges —filed suit against the state’s Agricultural Labor Relations Board last year trying to overturn the law, which Gov. Gavin Newsom signed in 2023.

Dispute at Wonderful’s Grape Nursery in Wasco

The suit, alleging the law is unconstitutional, came after the United Farm Workers filed a petition with enough signatures to represent 600-odd workers at the company’s grape nursery in Wasco.

In a contentious public dispute, the company accused union organizers of tricking workers into signing cards supporting unionization and provided over 100 employees’ signatures attesting to being deceived; in turn, the union accused the company of illegally intimidating workers into withdrawing their support. Regulators at the agricultural labor board filed charges against Wonderful after investigating the claims.

All of those allegations were being heard before the labor board last spring when Wonderful took the matter to court, arguing the new law deprived the company of due process. A Kern County judge initially halted the board proceedings, but the appeals court allowed them to continue last fall. After weeks of hearings this year, the labor board has yet to issue a decision on whether UFW can represent Wonderful employees.

Wonderful Closes Wasco Nursery

In the meantime, the company has shuttered the Wasco nursery and donated it to UC Davis, making the question of an actual union at the worksite moot.

In the new ruling, the appeals court judges issued a sharp rebuke of the company for suing over the unionization instead of waiting for the labor board decision.

“Wonderful filed this petition notwithstanding approximately 50 years of unbroken precedent finding an employer may not directly challenge a union certification decision in court except in extraordinarily and exceedingly rare circumstances, which Wonderful does not meaningfully attempt to show are present here,” wrote Justice Rosendo Peña.

Elizabeth Strater, a United Farm Workers vice president, said the decision affirms that “every farm worker in California has rights under the law, and those rights need to be protected.”

But Wonderful Company General Counsel Craig Cooper dismissed the ruling as only a matter of timing:  “the decision explicitly does not address the merits of Wonderful Nurseries’ constitutional challenge.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.