Video from the site shows piles of raw sugar being stored at the Levin Richmond Terminal, where city leaders and labor groups say the product is being kept near coal and petroleum materials.
"Sugar, which is a food product, is being dumped here next to coal and petroleum products," said Richmond City Councilmember Claudia Jimenez.
Jimenez said the city sent staff to inspect the terminal after learning about the storage arrangement and contacted the Contra Costa County Health Department to investigate.
"The concern is also that the coal (does) not have a cover. The wind -- as you know, today -- the wind is strong. So (there) could be cross-contamination," Jimenez said, confirming city staff did observe the sugar on the ground.
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The storage issue comes amid a labor dispute at C&H Sugar's Crockett refinery. Members of ILWU Local 6, who work at the refinery warehouse, have been on strike since mid-June over issues including overtime pay and retirement benefits. According to union officials, ILWU Local 10 workers declined to unload sugar at the Crockett facility in solidarity with the strike, leading to shipments being diverted to Richmond.
C&H Sugar said in a statement: "In terms of quality, there is no difference in using this terminal instead of ours. Raw sugar is not food grade until it moves through a sugar refinery. Once it has been processed in our refinery, we assure the quality of our finished sugar."
Union leaders dispute the company's assurances.
"We didn't work the ship. They say the silos are running low. And they decided to bring the ship here. It was anchored for 10 days. And they brought it here to Levin," said Michael Villeggiante, President of ILWU Local 10.
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Villeggiante said union members observed the sugar being moved through the terminal on conveyer belts and by bulldozers, which may also be utilized to move items like scrap metal or cement, adding to concerns about potential contamination.
"Some of this stuff can be refined out. But some of it can't. Cement products, petroleum products cannot be refined out. We have seen hydraulic fluid on the ground. We have seen oil, or cement being powdered on the ground," Villeggiante said.
The San Francisco Bay Area labor dispute remains unresolved. Union officials contend C&H Sugar is not bargaining in good faith, while the company says it has offered a 20% increase over the next five years and remains committed to constructive dialogue. The city and county continue to review conditions at the terminal as questions remain about the storage of the raw sugar and its proximity to other industrial materials.