Wells' workers vote to reopen labor contract
Company wants $5 million in concessions
By Dave Dreeszen Journal business editor | Posted: Wednesday, February 27, 2008
LE MARS, Iowa -- A majority of hourly workers at Wells' Dairy Inc. have voted to reopen the final year of their contract with the ice cream maker, which wants to cut their pay and perks by about $5 million.
The affirmative vote, announced late Tuesday by the company, opens the door for a new round of negotiations.
"Wells' Dairy is dedicated to bargaining in good faith with the employee committee as the parties explore modifications to the labor agreement that will improve the company's competitive position, and thereby create greater job security, stability and sustainability for our represented employees," the company said in a statement. "Both parties recognize that they will achieve a successful outcome by following this win-win approach to bargaining."
The family owned and operated company wants to trim expenses to strengthen its Blue Bunny ice cream and frozen novelty business.
Wells' managers have suggested several cost-saving moves totaling about $10 million, from forgoing a scheduled 4 percent pay raise this year, to giving up holiday bonus checks to ending overtime pay for work that exceeds 8 hours in any one day.
That list will form the basis of the new round of talks, which are expected to begin soon.
Neal Kruckenberg, president of United Dairy Workers, the local bargaining committee, could not be reached for comment late Tuesday.
More than 1,500 hourly workers covered under the contract were eligible to cast votes Monday morning through 3 p.m. Tuesday. Vote totals were not immediately available.
The local employee committee, recognized by the National Labor Relations Board, previously said it likely would begin to collect union dues if workers voted to reopen the contract. The dues, which would be between $3 to $5 per week, would help cover higher negotiating costs.
With a total work force of about 2,350, Wells' is the largest employer in Le Mars, where the privately held company has its headquarters, two ice cream plants, a freezer and warehouse. The dairy, founded in 1913, recently sold its milk plant in Le Mars to Dallas, Texas-based Dean Foods and its yogurt plant in Omaha to Mexico-based Grupo LALA.
The sales were part of Wells' strategy of divesting its fresh and cultured dairy business in order to focus on its strategy to become a Top 3 national brand of ice cream and frozen novelties.
The company also recently cut less than 20 corporate jobs at its newly opened $26 million headquarters.
The affirmative vote, announced late Tuesday by the company, opens the door for a new round of negotiations.
"Wells' Dairy is dedicated to bargaining in good faith with the employee committee as the parties explore modifications to the labor agreement that will improve the company's competitive position, and thereby create greater job security, stability and sustainability for our represented employees," the company said in a statement. "Both parties recognize that they will achieve a successful outcome by following this win-win approach to bargaining."
The family owned and operated company wants to trim expenses to strengthen its Blue Bunny ice cream and frozen novelty business.
Wells' managers have suggested several cost-saving moves totaling about $10 million, from forgoing a scheduled 4 percent pay raise this year, to giving up holiday bonus checks to ending overtime pay for work that exceeds 8 hours in any one day.
That list will form the basis of the new round of talks, which are expected to begin soon.
Neal Kruckenberg, president of United Dairy Workers, the local bargaining committee, could not be reached for comment late Tuesday.
More than 1,500 hourly workers covered under the contract were eligible to cast votes Monday morning through 3 p.m. Tuesday. Vote totals were not immediately available.
The local employee committee, recognized by the National Labor Relations Board, previously said it likely would begin to collect union dues if workers voted to reopen the contract. The dues, which would be between $3 to $5 per week, would help cover higher negotiating costs.
With a total work force of about 2,350, Wells' is the largest employer in Le Mars, where the privately held company has its headquarters, two ice cream plants, a freezer and warehouse. The dairy, founded in 1913, recently sold its milk plant in Le Mars to Dallas, Texas-based Dean Foods and its yogurt plant in Omaha to Mexico-based Grupo LALA.
The sales were part of Wells' strategy of divesting its fresh and cultured dairy business in order to focus on its strategy to become a Top 3 national brand of ice cream and frozen novelties.
The company also recently cut less than 20 corporate jobs at its newly opened $26 million headquarters.
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Dick wrote on Mar 2, 2008 2:30 AM:
wells worker wrote on Feb 28, 2008 12:06 AM:
Outsider wrote on Feb 27, 2008 4:02 PM:
Pat T wrote on Feb 27, 2008 5:17 AM: