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Heinz Workers at Two Locals Unite for Better Contract

Heinz workers in Fremont, Ohio, and Muscatine, Iowa, have ratified two separate five-year deals with the company. Although they were working to negotiate two different contracts, the members (who belong to UFCW Locals 75 and 431, respectively) worked together to make sure both groups left the table with a good deal.

Committee members from each local routinely attended and supported the negotiations of their sister plant, and distributed handbills that let their co-workers and the company know that while the details of their contracts might be different, their priorities – affordable health care, and good jobs with middle class opportunities – were the same.

“We can’t stand alone,” said Bob Bigford from the Muscatine plant. “The consequences are mighty when you stand alone.” Both units were able to negotiate 3% wage increases every year for each year of the contract as well as an increase in their pension contributions. Both units also maintained affordable health care benefits. In Muscatine, negotiations reduced the waiting period for medical, vision, and dental eligibility. In addition, they were also able to add limits to the use of temporary workers, improve tool allowances, shorten and simplify grievance language, and improve language that allows union representatives access to the plant.

Kyle Smith, a member of Local 431, was glad the bargaining committee was able to address the issue of temporary workers. “People want to stay, and they work hard to keep a job at Heinz. They want a permanent job, and I want them to have the same opportunity I did.”

Statement by United Food and Commercial Workers International Union (UFCW) on H.J. Heinz Company

Washington DC—The UFCW—which  represents 2,400 workers at six Heinz plants—fully endorses the Heinz management business plan for long-term growth in the food processing industry. The management plan offers the best opportunity for the kind of stable growth that will best benefit all stakeholders—employees, communities and shareholders.

The Peltz plan for re-orienting the direction of the company via a slate of Board of Directors candidates would put the company at risk by incurring excessive debt. The Peltz plan is short-sighted, narrowly gambling on a quick—but perhaps fleeting—spike in company value. The plan would disrupt key customer relationships, sell off operations, eliminate jobs, and close plants with no clear, long-term purpose of building a strong and growing company presence in the industry.

The UFCW agrees with the financial analysts who have concluded that the Peltz plan would place too much financial risk on the company without any real business plan for long-term sustainability.

The wisest and best choice for all stakeholders would be a rejection of the Peltz slate of directors at the company’s annual shareholder meeting next week in Pittsburgh. UFCW international Vice President Mark Lauritsen who heads the UFCW Manufacturing, Packing, and Food Processing Division, will attend the meeting where he will urge shareholders to cast a positive vote for the management plan that puts stability and growth over quick fix schemes.