The statement came after about 400 union employees went on strike at the company’s Pennsylvania plant last Wednesday over disagreements on pensions, wages and health care. The $230m confectioner behind brands such as Mike and Ike and Hot Tamales has reportedly proposed to switch from a pension plan to a 401(k).
Rejecting union’s health insurance modification plan
“Just Born proposed eliminating the workers’ pension plan, offered substandard market wage increases while increasing the workers’ share of health insurance costs. While the union proposed modifications to the health insurance plan that would have offered the company substantial savings, the company refused,” president of Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), Hank McKay, said in a statement earlier.
Just Born did not immediately comment on why it decided to switch the pension plan, and how it might affect its workers.
Director of BCTGM, John Price, told ConfectioneryNews, a large number of the demographics at the Just Born plant are over 50 years old and questioned any proposal to cutting their pensions.
He added that Just Born employees have been working under an expired contract since June this year. But Just Born told ConfectioneryNews, even though the contract expired on June 30, it had an extension on the contract through August 31.
Just Born: Pension inputs unchanged
Just Born said in its statement that the firm's “pension proposal includes continuing to contribute to the pension fund, at the current level, for every current Just Born associate in the union. All new associates will participate in a 401(k)”.
“We offer highly competitive and above average wages to our plant associates, and our current wage increase proposal continues to keep wages highly competitive and above average,” the company added.
“Our healthcare proposal continues to offer the same percentage of healthcare costs our associates pay as our current plans.”
Just Born did not respond when asked if the labor strike might affect Peeps sales for Easter next year.