Mondelēz Negotiations

INFORMATION & UPDATES

April 7, 2017

In the News: Recent Headlines Highlight Continued Challenges for Multiemployer Pension Plans, Pension Benefit Guaranty Corporation

The Company’s Second Revised, Last, Best and Final Offer (LBFO) includes retirement benefits intended to replace the B&C Pension Fund, which is in “Critical and Declining” Status. The B&C Pension Fund indicated in an April 27, 2016 notice that it will run out of money to pay benefits by 2030, just 13 years from now.
The Company believes it is important to provide an alternate source of retirement funding for our employees, given the uncertainty around the B&C Pension Fund’s financial situation. The Company’s LBFO offers our employees potential retirement benefits from two sources: whatever vested B&C Pension Fund benefits they may receive and a defined contribution retirement plan funded entirely by the Company. Read more >

 

December 21, 2016

Second Revised, Last, Best and Final Offer Presented Today

It has been more than 8 months since negotiators from Mondelēz Global LLC and the BCTGM last met despite the Company’s willingness to meet at any time, and 6 months since the Company last heard anything from the BCTGM about negotiations. During these past months, it consistently has remained the Company’s goal to secure contracts for our employees. Read more >

Dec 21, 2016

Iron Workers’ Multi-Employer Pension Plan Gets Approval to Reduce Retirees’ Pension Benefits

Cleveland.com reported that the Treasury Department said an Iron Workers union retirement fund, which is in “critical and declining” status, can cut retiree pensions deeply for the sake of keeping the fund solvent. Without a deep reduction in benefits, the Cleveland.com report said the Iron Workers’ pension fund was projected to run out of money within a decade. Similarly, the Bakery and Confectionery Union and Industry International Pension Fund (B&C Pension Fund), which is also in “critical and declining” status is projected to be insolvent in 13 years. Read more >

May 13, 2016

B&C Pension Fund Updates Insolvency Date Projection – from 17 to 14 Years

In April 2015, the B&C Pension Fund reported that it was in “critical and declining status” and was projected to be insolvent in 17 years (by 2032). In May 2016, just one year later, the Fund’s Notice of Critical and Declining Status indicates that the Fund is projected to run out of money to pay benefits by 2030, just 14 years from now. Read more >

April 8, 2016

BCTGM Broke off Talks without Allowing a Vote

At the time negotiations were scheduled to begin, the BCTGM told the Company that they were breaking off negotiations, despite talks being scheduled for the day. No further negotiations sessions being set for a future date. Read more >

April 7, 2016

Negotiations Resumed, Company Submitted its Revised Last, Best & Final Offer; Union did not allow Employees to Vote on the Offer

Mondelez Global LLC and the BCTGM resumed negotiations in Baltimore, Maryland. The Company submitted its Revised Last, Best & Final Offer, which adjusted the pension restoration contribution timing from yearly to weekly, and clarified that the $5,000 lump sum ratification bonus would only be paid in the event new agreements are ratified by the membership. The Union did not allow employees to vote on the offer, and continued to reject the Company’s retirement proposal to exit the B&C Pension Fund, which is in critical and declining status. The Company continued to offer employees a defined contribution retirement plan. The Union reiterated its proposal, which demonstrated the parties were deadlocked over the pension issue. Read more >

March 21, 2016

Negotiations Scheduled to Resume on April 7, 2016

April 7 was the next date that the Union made itself available to meet. The Company advised the Union that it is available to meet and negotiate every day, including weekends, from now until resolution. Read more >

March 10, 2016

Company Submitted its Last, Best & Final Offer; Union did not allow Employees to Vote on the Offer

The Union did not allow employees to vote on the offer, and continued to reject the Company’s proposal to exit the troubled B&C Pension Fund and offer its employees a defined contribution retirement plan. The Union made its own proposal, which continued to show that the parties are deadlocked over the pension issue. The Union broke off talks in the afternoon and no further sessions were scheduled despite the Company’s willingness to meet anytime. Read more >

March 8-10, 2016

Negotiations Resumed

Mondelēz Global LLC and the BCTGM resumed negotiations in Baltimore, Maryland. Mediators from the Federal Mediation and Conciliation Services (FMCS) joined the Company and BCTGM representatives in negotiations. Read more >

Feb. 29, 2016

Contracts Expired

Feb. 25, 2016

Company Presented its Best and Final Offer; Union did not allow Employees to Vote on the Offer

Given that the contracts were set to expire on Feb. 29, the Company presented its Best and Final Offer in a good faith effort to resolve all open issues. The Union did not allow employees to vote on the offer. Read more >

Feb. 24, 2016

Union not willing to Negotiate

The Company was prepared to come to the table, but the Union was not willing to negotiate. Read more >

Feb. 23, 2016

Union did not come to Table

Company representatives hoped to continue negotiations with the Union, with the goal of engaging in dialogue and exchanging, modifying and countering proposals, but the Union did not come to the table. Read more >

Feb. 16-22, 2016

National Talks take place between Mondelēz Global LLC and the BCTGM

Representatives from Mondelēz Global LLC and the BCTGM met in Charlotte, North Carolina. Topics discussed included Pension, Healthcare, Wages, and Job Security. As talks continued, modified proposals were exchanged, including an offer from the Company to enhance its retirement proposal. Read more >

NEGOTIATIONS OVERVIEW

Contracts between Mondelēz Global LLC and the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) union that cover about 2,200 employees at five Company bakeries and three distribution sites expired on Feb. 29, 2016.

 

It remains the Company’s goal to negotiate in good faith to secure contracts with the BCTGM that continue to provide our employees with good wages and benefits, while at the same time allowing the Company to operate as a Best-in-Class organization in the Consumer Packaged Goods markets in which we compete.