Wells' seeking $5M in labor concessions
By Dave Dreeszen Journal business editor(c) 2008 Sioux City Journal | Posted: Wednesday, February 20, 2008
LE MARS, Iowa -- Wells' Dairy Inc., seeking to reopen the final year of a labor contract, wants about $5 million in concessions from 1,500 hourly workers.
Employees learned of the company's demands during a series of meetings this week, according to workers who were in attendance.
During the sessions, the labor group that represents rank-and-file Wells' employees laid out potential cost-saving moves, including a pay freeze, a limit on overtime and elimination of profit sharing and holiday bonus checks.
At the meetings, workers were asked to rank seven cost-saving items, from least likely to most likely to give up. The Journal obtained a copy of one of the ballots.
Of the options listed, the largest savings -- an estimated $3 million -- would come from workers forgoing a scheduled 4 percent pay raise this year. Giving up holiday bonus checks would reduce costs this year by about $1.5 million, according to the document. Cutting out profit sharing would save another $1.4 million.
Wells' wants the employee group to agree to a combination of concessions that would total about $5 million, according to the workers, who agreed to talk to the Journal on the condition they remain anonymous.
The ballot also asked workers if they would consider extending the current contract for another year, ''knowing that the only item that may change is a possible wage increase.''
Last week, Wells' asked United Dairy Workers, an employee bargaining committee, for permission to reopen talks on the current three-year contract, set to expire on Dec. 31.
Wells' spokesman Dave Smetter said Tuesday the company offered possible items of negotiation the employee committee could share with workers. Smetter would not confirm whether the options listed on the ballot were among the ideas the company suggested. He also declined to identify the level of cost savings the company hopes to achieve through renegotiating the contract.
"We just don't want to get into the specifics at this time until the employees have an opportunity to discuss them among themselves,'' Smetter said. "There's several steps that have to occur. At some point in time, the committee will go forward with a vote on whether or not to actually open up the contract.''
Workers are expected to vote next week on whether to reopen negotiations. United Dairy Workers President Neal Kruckenberg could not be reached for comment late Tuesday.
Revisiting the labor contract is part of Wells' newfound strategy to focus exclusively on its ice cream and frozen novelty business, Smetter said.
"What we're trying to do is manage our business going forward to put us in the best competitive position to achieve our ultimate goal of being a Top 3 national brand,'' Smetter said.
The family-owned and operated dairy recently sold its milk plant in Le Mars and its yogurt plant in Omaha. In addition, the 94-year-old firm eliminated about 20 corporate jobs at Wells' new $26 million headquarters in Le Mars, where Wells' is the largest employer with about 2,350 workers.
The current labor contract covers hourly workers at Wells' two ice cream plants, a freezer and warehouse in Le Mars, the self-proclaimed "Ice Cream Capitol of the World.''
If workers decide to reopen the contract, the employee committee, recognized by the National Labor Relations Board, intends to start collecting union dues, according to the ballot handed out at this week's employee meetings. The dues, which likely would be between $3 to $5 per week, with an initiation fee of about $20, would help cover higher costs for negotiating a contract, according to the document.
Employees learned of the company's demands during a series of meetings this week, according to workers who were in attendance.
During the sessions, the labor group that represents rank-and-file Wells' employees laid out potential cost-saving moves, including a pay freeze, a limit on overtime and elimination of profit sharing and holiday bonus checks.
At the meetings, workers were asked to rank seven cost-saving items, from least likely to most likely to give up. The Journal obtained a copy of one of the ballots.
Of the options listed, the largest savings -- an estimated $3 million -- would come from workers forgoing a scheduled 4 percent pay raise this year. Giving up holiday bonus checks would reduce costs this year by about $1.5 million, according to the document. Cutting out profit sharing would save another $1.4 million.
Wells' wants the employee group to agree to a combination of concessions that would total about $5 million, according to the workers, who agreed to talk to the Journal on the condition they remain anonymous.
The ballot also asked workers if they would consider extending the current contract for another year, ''knowing that the only item that may change is a possible wage increase.''
Last week, Wells' asked United Dairy Workers, an employee bargaining committee, for permission to reopen talks on the current three-year contract, set to expire on Dec. 31.
Wells' spokesman Dave Smetter said Tuesday the company offered possible items of negotiation the employee committee could share with workers. Smetter would not confirm whether the options listed on the ballot were among the ideas the company suggested. He also declined to identify the level of cost savings the company hopes to achieve through renegotiating the contract.
"We just don't want to get into the specifics at this time until the employees have an opportunity to discuss them among themselves,'' Smetter said. "There's several steps that have to occur. At some point in time, the committee will go forward with a vote on whether or not to actually open up the contract.''
Workers are expected to vote next week on whether to reopen negotiations. United Dairy Workers President Neal Kruckenberg could not be reached for comment late Tuesday.
Revisiting the labor contract is part of Wells' newfound strategy to focus exclusively on its ice cream and frozen novelty business, Smetter said.
"What we're trying to do is manage our business going forward to put us in the best competitive position to achieve our ultimate goal of being a Top 3 national brand,'' Smetter said.
The family-owned and operated dairy recently sold its milk plant in Le Mars and its yogurt plant in Omaha. In addition, the 94-year-old firm eliminated about 20 corporate jobs at Wells' new $26 million headquarters in Le Mars, where Wells' is the largest employer with about 2,350 workers.
The current labor contract covers hourly workers at Wells' two ice cream plants, a freezer and warehouse in Le Mars, the self-proclaimed "Ice Cream Capitol of the World.''
If workers decide to reopen the contract, the employee committee, recognized by the National Labor Relations Board, intends to start collecting union dues, according to the ballot handed out at this week's employee meetings. The dues, which likely would be between $3 to $5 per week, with an initiation fee of about $20, would help cover higher costs for negotiating a contract, according to the document.
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coincidence i think not wrote on Mar 3, 2008 3:03 PM:
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