Key Update

May 23, 2018

Company Implements Two Aspects of LBFO

Contracts between Mondelēz Global LLC and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) that cover about 2,000 employees at five bakeries and three distribution sites expired on Feb. 29, 2016. Since that time, we have remained committed to negotiating in good faith, and we have presented an offer which we believe is good for both our employees and our business.

In light of the clear impasse in these negotiations and in the hope of bringing resolution to this process, the Company notified the BCTGM that, effective with the start of any shift that begins after 12:01AM local time on May 23, 2018, we are implementing two aspects of our Second, Revised Last Best and Final Offer (“LBFO”):

  • Wage Increases (including increases to the Airveyor rate and night work compensation), and
  • Our Retirement Plan offer.

For details on those two aspects, please see those sections of the LBFO which was presented in December 2016.

At this time, we are not implementing any other aspects of our LBFO.


Your Company’s Offer

What you need to know about the “Last, Best and Final Offer”:

Contract Term
Four Years – March 1, 2016 through February 29, 2020

Wages & Bonus
A 2.25% wage increase for all classifications, each year of the contract and retroactive to March 1, 2016, and a bonus of $5,000 payable if ratified before implementation.

Healthcare
A plan with $200 (Individual) and $400 (Family) annual deductibles, and $1,500 (Individual) and $3,000 (Family) annual out-of-pocket maximums. Once your deductible is met, the plan typically pays 90% of in-network covered costs, and after your out-of-pocket maximum is reached, the plan pays 100% for eligible in-network expenses.

Retirement
Supplementing the B&C Pension Fund by Creating an Enhanced TIP Plan. The B&C Pension Fund is in “Critical and Declining Status” and has reported that it likely will not have enough money to pay all of its obligations by 2030. Going forward, your retirement benefits would come from two sources:

  1. Any vested B&C Pension Fund benefit for service credits already earned; and
  2. An Enhanced TIP plan accounts, funded entirely by the Company.