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Changing Times

Ohio Bakery Division Unfazed by New Approach to Contract

November 17, 2005

The Ohio Bakery Division has implemented some changes to their contract-negotiating schedule with the state’s three major bakers. In the past, the ten local unions in Ohio representing bakery workers bargained as a group with Interstate Bakeries Corporation (IBC), Nickles and Schwebels, the three major bakers that service grocery stores, restaurants and smaller mom and pop stores in the state. Teamsters Local 20, 40, 52, 92, 114, 284, 377, 637, 908 and 957 were all part of this process.

However, with the IBC announcement of plans to file for bankruptcy in September 2004, Dave Dudas and Tom Weber, Co Chairs of the Ohio Bakery Division realized the old negotiating format would probably change. When the statewide Ohio Multi-Employer Bakery Agreement expired July 17, 2005., Nickles and Schwebels opted to go their separate ways citing differing views on the future of the bakery industry leaving the locals to hammer out three separate contracts.

“This has changed the process considerably,” said Dave Dudas, also Secretary-Treasurer of Local 52 . “But we quickly adapted and are bargaining hard and protecting the interests of our members as usual.”

The first step was to provide security for members at IBC amid the company’s financial restructuring. The negotiating committee decided the best course of action was to sign a six-month extension to the old contract with IBC that will run through January 22, 2006 for all 10 locals involved in the contract. The strategy is to keep the Company viable in Ohio while continuing to provide good-paying jobs for Ohio members while the company reorganizes.

Bargaining Hard

Dudas and Tom Weber, Secretary-Treasurer of Local 114 headed the Schwebel’s Baking negotiations for locals 40, 52, 92, 284, 377 and 957. A new contract was ratified statewide by a nearly unanimous margin on September 18.

The negotiations were tough, requiring the committee to hold firm on their issues right from the start. The mandate from the members was simple: ‘hold on to what we have now—anything else will be a bonus’. The management team was equally firm, demanding changes in the health and welfare benefits, including premium sharing by the employees and listing Sunday as a regular work day. Fourteen bargaining sessions were held, the last going into the early morning hours before an agreement was reached.

The local unions prevailed, keeping the no premium sharing policy intact and retiree coverage costs were reduced and frozen until 2008. They did agree to minor changes in prescription coverage out of pocket maximums and a $2 million major medical maximum limit. The negotiating team was also able to get a ‘bonus” for the members of base wage increases for the route sales drivers and hourly increases for transport drivers and loaders.

“We are all really happy with the contract, it’s a big win” said Jim Little, a Schwebel’s worker and member of Local 52 for 25 years. “We are a tight knit group and were ready to do whatever it took to get a solid contract—including strike. But the committee used their skills and got us what we needed.”

The negotiations with Nickles for the ten locals are still ongoing and have proven to be equally tough. The members turned down an offer by a vote of 303-9 on October 23 and the committee has resuming bargaining with the company.

“We’ve had to change our game plan this year,” said Dudas. “But it has worked out ok. We will continue to adapt our methods of bargaining as needed to maintain the members’ interests as the number one priority.”

“I’m from a big union family so I know talks can get bogged down in the face of changes to the system,” said Little. “But our committee took it in stride and moved forward—maybe even stronger than before. We are proud of that.”


             

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