Wednesday, September 1, 2010

Mott's Worker's Strike and the Fight Against Corporate Greed


After extensive research, we produced this article which will be coming out in CEJ's Fall Newsletter. We thought it was a very important story, so we decided to post it here as well...


The Mott's Worker's Strike and the Fight Against Corporate Greed
You may not know this, but about 100 miles east of Buffalo, a major battle in the fight against corporate greed is being waged. In the town of Williamson, NY, over 300 workers from RWDSU (Retail, Wholesale, and Department Store Workers) Local 220 at the Mott’s manufacturing plant have been on strike since May 23rd over a proposed new contract that would reduce pay and benefits along with a whole other list of concessions. This affront comes at a time of record profits for the company who owns Mott’s, the Dr. Pepper Snapple Group, which is seeking to take advantage of a depressed economy as an opportunity to lower wages and benefits, and attempt to break the union.

According to workers, things began to noticeably change at the Mott’s plant over 2 years ago, when Dr. Pepper Snapple Group (DPS) bought the company from Cadbury Schweppes. As soon as that happened, DPS began eliminating any and all benefits which were not explicitly included in the contract. These included family parties, hot dog roasts for surpassing production goals, free hams at Easter, and audaciously even, the elimination of a popular work-safety committee. The family-oriented, cooperative atmosphere of the plant was systematically eroded. DPS began following the contract to the letter, to the point where one long-time employee was fired for carrying a knife in his locker that he used to open boxes with.

When it came time this spring to renew a contract, the company failed to negotiate in good faith, presenting an offer which included $3.00 per hour pay cuts, reduction in company contributions to the 401 (k) retirement plans, no pension plan for new employees, and higher health care premiums. The deal would also include the ability of DPS to assign employees to different job titles and pay grades at will, on a day to day basis. For some workers, this new contract would mean the difference between having a good job and living at the poverty level. DPS would not cooperate in negotiations, saying that if the contract was not signed, upon expiration of the current contract they would institute $1.50 wage cuts and benefit reductions, meaning that a good paying job at $38,000 per year would become a $30,000 per year job. Union representation came back to the table with their own offer, conceding 3-year wage freezes but leaving benefits intact. When this offer was rejected by DPS, the RWDSU 220 knew their only option was to strike.

It would be one thing if Dr. Pepper Snapple needed to reduce pay and benefits for financial survival. RWDSU Local 220 has made concessions when times were tight before. However, this past year the company enjoyed a record $555 million in profits. According to RWDSU Local 220’s Bruce Beal, $50 million alone came from the Mott’s plant in Williamson. Perhaps as a result of the record profits, DPS CEO Larry Young received a pay increase this year, up to $6.5 million – a 113% increase from three years ago.

During a meeting between RWDSU and DPS representatives, RWDSU President Larry Applebaum was told that workers should think of themselves like a commodity, such as soybeans or oil. When supply increases, price should decrease, regardless of how large a profit the company was making. If wage reductions would mean that employees could not afford their car or their house, they should sell those things because they were “living beyond their means”. DPS was looking to take advantage of economic hardship and unemployment within the community at large as a justification to pay its employees less. Should they succeed, it would only make the local economy suffer further, as available income to spend at local businesses would decrease as well.

Currently, the Mott’s plant in Williamson is operating with replacement workers from NY State and across the country. As evidence to the skill of the RWDSU Local 220 workforce, the plant, which normally runs at an 87% efficiency rate, is down to a 12% rate. Production has dropped from the usual 40,000 cases per day to around 6,000, while the quality of the product has also suffered. It seems financially unwise for the company to refuse to negotiate. However, Bruce Beal of RWDSU Local 220 put it into a larger picture, saying “their main goal is to break this union,” adding that, “they feel the best way to get to the workers is to go after their pocket books.”

RWDSU Local 220 grows stronger every day, due to the tremendous support they are receiving. Although 10 of the 300 workers are dealing with expensive chemotherapy treatments for cancer, the national RWDSU has paid for their insurance so they can continue treatment. However, as fall rolls around, apple growers are getting anxious as to where they will be selling their product. Currently, 20% of the apples grown in NY State are purchased by Mott’s. Obviously, it is urgent for all involved that the situation becomes resolved as soon as possible. RWDSU is calling on Dr. Pepper Snapple to come to the table to negotiate a new contract in good faith.

As this strike has evolved, entering its 4th month, it has taken on a much broader significance in the context of the fight against corporate greed. Workers across the country have taken notice of what Dr. Pepper Snapple is doing to the employees at Mott’s. This strike is about a set of principles - that good jobs are important and worth fighting for, and that companies that are doing well financially should not be able to take advantage of a down economy to erode the standards of labor in this country that folks have worked so hard in fighting for. If RWDSU Local 220 can show that workers are a powerful force that will not be moved, it will send a message to other companies that may prevent them from doing the same thing to their employees. Victory for the Mott’s workers would represent another major blow to the forces of corporate greed.

For more information, and how to support RSWDU Local 220 and their strike, visit http://www.mottsworkers.org/. There you will find information about how to contribute to the “RWDSU Mott’s Hardship Fund”, and a list of Dr. Pepper Snapple products that they are urging consumers to boycott.

You can also write or fax a letter to DPS President & CEO Larry Young at
5301 Legacy Drive, Plano, TX 75024 or fax it to (972) 673-7976 (RWDSU asks that you please also fax a copy of your letter to the RWDSU at 212-779-2809)


Thanks to Tom Campbell @ WNYLaborToday, Ari Paul @ The Nation, and Stephen Greenhouse @ NY Times, among others, whose research greatly contributed to the writing of this report.

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