Negotiations Updates

Overview

Contracts between Mondelēz Global LLC and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) that cover about 2,000 Company employees at five bakeries and three distribution sites expired on Feb. 29, 2016. Since then, those employees have been working without a contract. Unfortunately, the BCTGM walked away from negotiations in April 2016 and has declined to let the employees vote on any of the Company’s proposed contracts. Since then, the Company has remained willing to meet at any time and our goal consistently has been to secure contracts for our employees.

The “Second Revised, Last, Best and Final” presented to the BCTGM in December 2016 is a good offer and the right solution for both our employees and our business.

To learn more about how we got to this point, see below.

August 1, 2018

Securing Our Current Employees’ Futures, NOT Impacting Our Retirees

Click here to read more about our Withdrawal from the B&C Pension Fund and how we’re focused on securing our current employees’ futures, NOT impacting our retirees.

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.

May 21, 2018

EXPIRED: $15,000 Supplemental Ratification Bonus Offer

Unfortunately, following the Company’s April 25th letter to BCTGM Chief Negotiator Jethro Head, the Union did not put our offer before its members for a vote. As such, they have allowed our tripled ratification bonus offer to expire last night at 11:59 p.m. Pacific.

We are disappointed that our employees missed out on the opportunity to vote, ratify and receive $15,000 each.

Accordingly, the Company’s proposal reverts back to the terms of its Second, Revised Last Best and Final Offer.

May 11, 2018

Your Retirement is in Your Hands

Click here to read more about our Company’s offer and the opportunity for employees to put their retirement money in their own hands.

May 4, 2018

Our Offer: The Real Math

We have offered to triple our ratification bonus if your contract is ratified by May 20, 2018. Click here to read more about “Our Offer: The Real Math”.

May 3, 2018

Time-Sensitive Call to Action: Supplemental Ratification Bonus Proposed

Every Eligible BCTGM-Represented Employee Would Receive $15,000* Bonus

More than two years have passed since contracts between Mondelēz Global LLC and the BCTGM expired. During this time, the BCTGM has not allowed you the opportunity to vote on our offer.

It is in the best interest of our employees and the business to move forward and bring a conclusion to these negotiations. In an effort to bring this process to resolution, we have offered to TRIPLE the ratification bonus to $15,000. All other terms of our Last Best and Final Offer remain the same.

To receive this supplemental bonus, ratification must occur by Sunday, May 20, 2018. If not ratified by that time, the Company’s proposal will revert to the terms of the Last Best and Final Offer.

Click here to read the April 25, 2018 letter sent by to Jethro Head at the BCTGM presenting the Company’s Additional Ratification Bonus Offer.

*If Ratified by May 20, 2018

April 27, 2018

B&C Pension Fund Remains in Critical & Declining Status

The B&C Pension Fund released its annual notice that it continues to be in “Critical and Declining Status.” According to the notice:

The plan is considered to be in critical status because it has funding problems… the Plan was certified as being in critical and declining status because the plan is in critical status and the actuary determined that the plan is projected to become insolvent within 13 years from January 1, 2018…

What this notice is saying is that the B&C Pension Fund likely will not have enough money to pay all of its obligations by 2030, less than 13 years from today. The B&C Pension Fund posted similar notices in 2017, 2016 and 2015.

The Company wants its employees to have secure retirements. We have proposed a Company plan in addition to any benefit you receive from the B&C Pension Fund for service you have already earned. Click here for more information.

April 28, 2017

B&C Pension Fund Again Reports Being in Critical & Declining Status

Today the B&C Pension Fund posted its annual notice that it remains in “Critical and Declining Status.” According to the notice:

The plan is considered to be in critical status because it has funding problems… the Plan was certified as being in critical and declining status because the plan is in critical status and the actuary determined that the plan is projected to become insolvent in 13 years from January 1, 2017…

What this notice is saying is that the B&C Pension Fund likely will not have enough money to pay all of its obligations by 2030. The B&C Pension Fund posted similar notices in 2016 and 2015.

The Company wants its employees to have secure retirements. We have proposed a Company plan in addition to any benefit you receive from the B&C Pension Fund for service you have already earned. The Company plan would provide a second source of retirement benefits. Click here for more information.

May 13, 2016

Update from the Bakery and Confectionery Union and Industry International Pension Fund

Recently, the Bakery and Confectionery Union and Industry International Pension Fund (B&C Pension Fund) released several annual notices which are required by law.
These notices highlight ‒ once again ‒ that your pension under the B&C Pension Fund is not secure.

It is increasingly likely that, in order to keep the B&C Pension Fund from insolvency, the Trustees will have to reduce benefits. However, even if benefits are reduced, there is no guarantee that the B&C Pension Fund would avoid insolvency.
Here are some key takeaways from the recently released B&C Pension Fund notices:

  • 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). Now, 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.
  • The funding level of the B&C Pension Fund, which represents its ability to meet its benefit obligations to participants, has been consistently declining. For example, in 2010, the funding level percentage was 86.5%. But, for the 2015 plan year, that funding level had declined to only 62.8%. This funding decline has come during a period when the stock markets have been increasing.
  • Since 2010, the B&C Pension Fund Trustees have taken actions to reduce benefits due to the Fund’s poor financial condition. One example of this benefit cutback is how the Trustees have amended the pension plan so that it would be impossible for a former employee to “age into” a Golden 80 pension. That is, a participant could not qualify for this early retirement pension unless he/she is working in covered employment when his/her combined age & service add up to 80. Because the Trustees’ prior two attempts to cut back access to the Golden 80 pension were ultimately not effective due to legal challenges, the Trustees of the Fund amended the plan for the third time to limit eligibility for the Golden 80 effective June 1, 2016.
To learn more about the status of the B&C Pension Fund and what it means for a plan participant’s pension benefits, read these documents.

April 8, 2016

BCTGM Breaks off Talks

This morning, at the time negotiations were scheduled to begin, the BCTGM told the Company that they were breaking off negotiations, despite talks being scheduled for today. This follows the Company presenting its Revised Last, Best and Final Offer yesterday afternoon.

There are no further meetings scheduled at this time.

April 7, 2016

Company’s Revised Last, Best & Final

Mondelez Global LLC and the BCTGM resumed negotiations today in Baltimore, MD, as planned. The Company presented a Revised Last, Best and Final Offer. While the value of the revised offer did not decrease, the Company 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 continued to reject the Company’s retirement proposal to exit the B&C Pension Fund, which is in critical and declining status. The Company continues to offer employees a defined contribution retirement plan. The Union reiterated its proposal, which demonstrates the parties’ deadlock over the pension issue.

The key aspects of the Company’s “Revised Last, Best and Final Offer” are:

  1. Four year contracts;
  2. Wage increases of 2.25% in each year;
  3. $5,000 lump sum bonus, which will only be paid in the event of a ratified agreement;
  4. 90/10 healthcare plan, effective January 1, 2017, with modest employee contributions deferred until January 1, 2018. After an employee’s deductible is met, the Company pays 90%, and after an employee’s out-of-pocket maximum is reached, the Company pays 100%; and
  5. Withdrawal from the B&C Pension Fund and new retirement benefits provided through an Enhanced Thrift Incentive Plan (TIP).

March 21, 2016

2016 BCTGM Contracts Negotiations Update

The Company presented its Last, Best and Final Offer (LBFO) to the Union on March 10, 2016. The LBFO speaks for itself. Negotiations are scheduled to resume on April 7, 2016, the next date that the Union has made itself available to meet. The Company has advised the Union that it is available to meet and negotiate every day, including weekends, from now until resolution. The Company remains committed to negotiating in good faith.

March 10, 2016

Company’s Last, Best & Final Offer

This morning, on the third day of this week’s scheduled bargaining sessions between Mondelēz Global LLC and the BCTGM, the Company presented its Last, Best and Final Offer, which is subject to withdrawal if not ratified by March 20, 2016.

The Union 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 have been scheduled at this time.

The key aspects of the Company’s “Last, Best and Final Offer” are:

  1. Four year contracts;
  2. Wage increases of 2.25% in each year;
  3. $5,000 lump sum bonus;
  4. 90/10 healthcare plan effective January 1, 2017, with modest employee contributions deferred until January 1, 2018. After an employee’s deductible is met, the Company pays 90%, and after an employee’s out-of-pocket maximum is reached, the Company pays 100%; and
  5. Withdrawal from the B&C Pension Fund, effective April 1, 2016, and new retirement benefits provided through an Enhanced Thrift Incentive Plan (TIP).

If not ratified by March 20, 2016, the Company’s “Last, Best and Final Offer” is subject to withdrawal.

March 9, 2016

2016 BCTGM Contract Negotiations End of Day Update

Negotiations continued today between Mondelēz Global LLC and the BCTGM with the involvement of a mediator from the Federal Mediation and Conciliation Services (FMCS).

Click on the link below to read three important things to know about retirement:

  1. The B&C Pension Fund Benefits are Not Secure
  2. Plans in “Critical and Declining” Status may Reduce Benefits
  3. Defined Contribution Plans are Growing in Popularity

March 8, 2016

2016 BCTGM Contract Negotiations End of Day Update

Mondelēz Global LLC and the BCTGM continued negotiations today for contracts covering five bakeries and three distribution branches. Mediators from the Federal Mediation and Conciliation Services (FMCS) joined the Company and BCTGM representatives in negotiations.

The Company reiterated its best and final offer.

The Union again referenced the studies it says support its claim that “Defined Benefit” (DB) pension plans are better than “Defined Contribution” (DC) plans. Those studies did not address DB plans that are in “Critical and Declining” status, like the B&C Pension Fund, which projects that within 17 years, it may be unable to pay benefits to its pension plan participants.

It is business as usual at all of our facilities and our dedicated employees continue to produce our many iconic brands, including ‘Nilla, Honey Maid, Wheat Thins, Cheese Nips, Premium, Barnum’s Animals, Chips Ahoy!, Ritz Chips, Oreo, Ritz, Nutter Butter, belVita, Teddy Grahams, Lorna Doone and Triscuit at our US bakeries.

March 8, 2016

2016 BCTGM Contracts Negotiations Morning Update

Negotiations resumed this morning between Mondelēz Global LLC and the BCTGM in Baltimore, Maryland. The Company remains committed to bargaining in good faith to reach contracts that will allow us to modernize our business and remain competitive in the global marketplace, while also continuing to provide our BCTGM-represented employees with good wages and benefits.

Retirement security is an important negotiations topic. The B&C Pension Fund is in “Critical and Declining” status, and the Fund itself projects that within 17 years, it may not be able to pay benefit commitments to its pension plan participants.

March 1, 2016

2016 BCTGM Contracts Negotiations Update

The contracts between Mondelēz Global LLC and the BCTGM covering five manufacturing plants and three distribution branches expired on February 29. Today, those facilities were open and operating despite a spike in absenteeism in some locations.

Based on the Union’s availability, negotiations are scheduled for March 8th, 9th and 10th. In addition, the Company has advised the Union that it is available to meet and negotiate every day, including weekends, from now until resolution.

February 29, 2016

2016 BCTGM Contracts Negotiations Update

The contracts that the Company and the BCTGM have been negotiating over the past two weeks will expire tonight at midnight, local time. The Company continues to bargain in good faith and is committed to achieving a successful resolution.

There is no extension agreement in place. However, employees are expected to report to work on Tuesday, March 1st as scheduled.

February 26, 2016

2016 BCTGM Contracts Negotiations Update

On Thursday evening, February 25th, the Union advised the Company that its committee was leaving Charlotte, and would not be available on Friday, Sunday or Monday to negotiate as the parties had agreed earlier in the week. Given that the contracts expire on Monday, February 29th, the Company presented its Best and Final Offer in a good faith effort to resolve all open issues.

The Company intends to continue to work toward an agreement with the BCTGM. The Union has said that its negotiating committee is not available to meet again until the week of March 7th. Although the Company would like to continue talking now, through the weekend, and on Monday as the Union originally agreed, we will meet with the Union whenever and wherever they are available to do so.

There is no extension in place. However, we hope that despite the delay in getting back to the bargaining table, it will be business as usual in our facilities, and that our employees continue to work even though the contracts have expired.

February 25, 2016

2016 BCTGM Contracts Negotiations Update

Negotiations continued today in Charlotte, NC with the remaining reduced BCTGM negotiating committee, and the Company made numerous proposals in a good faith attempt to reach a negotiated settlement including a modification of the vacation replacement proposal.

Today, the BCTGM alleged that Defined Benefit (DB) pension plans offer a more secure financial benefit in retirement. However, the B&C Pension Fund is in “critical and declining” status and is projected to be insolvent within 17 years. In addition, the B&C Pension Fund has had to cut benefits to members triggering a lawsuit by retirees.

February 24, 2016

2016 BCTGM Contracts Negotiations Update

On Tuesday, we were prepared to come to the table, but the Union was not willing to negotiate. Today, our negotiating committee went to the table to learn that the BCTGM chief negotiators had released their local committees from negotiations and had sent them home “to get prepared.” Negotiations continued throughout the day with the remaining BCTGM negotiating committee.

The Union posted a letter on their website alleging that the Company is using Chicago as a “bargaining chip” in these negotiations. As we told the Union at the table today, “nothing could be further from the truth.” In fact, it was the Union that had refused to bargain the investment decision when they had the opportunity to do so beginning in April 2015. It was the Union that has refused to bargain the effects of the investment decision on the Chicago employees since late July 2015. And it was the Union that brought the Chicago situation into these negotiations now, in February 2016.

In fact, today ‒ for the first time ‒ the Union made a proposal across the table pertaining to the effects on our employees of the reduction of lines in Chicago. We made it clear that we are prepared to offer the impacted Chicago BCTGM-represented employees the same separation package that was offered to and accepted by the other union-represented employees in Chicago in October and November 2015. We told them that, had they been willing to bargain anytime since late July 2015 through January 2016, they would have been offered that same package.

February 23, 2016

2016 BCTGM Contracts Negotiations Update

Today, Company representatives hoped to continue negotiations with the Union, with the goal of engaging in dialogue and exchanging, modifying and countering proposals. To the Company's disappointment, the Union did not come to the table today. Instead, the Union posted a letter on their website which contains a number of inaccuracies. The Company has also offered an enhancement to our retirement proposal which we provided to the Union yesterday and have summarized here. The Company's retirement proposal offers at least an equivalent retirement income to what you would be entitled to receive under the B&C Pension Fund, and our proposal provides you with more flexibility and control compared to the B&C Pension Fund.

The Company remains willing to meet with the Union and is committed to negotiating in good faith to secure contracts that will continue to provide our employees with good wages and benefits, while at the same time allowing the Company to successfully compete in the markets in which we operate. We look forward to hearing from the Union and to resuming negotiations.

February 22, 2016

2016 BCTGM Contracts Negotiations Update

Representatives from the Company and the BCTGM met in Charlotte, NC. Discussions focused on a variety of topics including Pension, Healthcare, and Wages.

Negotiations are scheduled to resume February 23, 2016.

February 20, 2016

2016 BCTGM Contracts Negotiations Update

Representatives from the Company and the BCTGM met today in Charlotte, NC. Discussions focused on a variety of topics including Pension, Healthcare, and Job Security.

Negotiations are set to resume on Sunday, Feb 21, 2016.

Here is more information, including copies of the Company’s Opening Remarks, Business Overview, Summary of Company's Initial Proposals, and the detailed presentations on the Company’s proposed Pension Plan and Health Care Plan.

February 19, 2016

2016 BCTGM Contracts Negotiations Update

Representatives from the Company and the BCTGM discussed a variety of topics and exchanged some modified proposals as talks continued for the fourth consecutive day in Charlotte, NC.

Negotiations will resume on Saturday, February 20, 2016.

Here is more information, including copies of the Company’s Opening Remarks, Business Overview, Summary of Company's Initial Proposals, and the detailed presentations on the Company’s proposed Pension Plan and Health Care Plan.

February 18, 2016

2016 BCTGM Contracts Negotiations Update

Representatives from the Company and the BCTGM continued negotiations on Thursday in Charlotte, NC.

Today's bargaining sessions focused on the Company and Union providing responses to each other’s initial proposals that were exchanged on Wednesday.

Negotiations will resume on Friday, February 19, 2016.

Here is more information, including copies of the Company’s Opening Remarks, Business Overview, Summary of Company's Initial Proposals, and the detailed presentations on the Company’s proposed Pension Plan and Health Care Plan.

February 17, 2016

2016 BCTGM Contracts Negotiations Update

Representatives from the Company and the BCTGM continued negotiations today in Charlotte, NC.

Today’s bargaining sessions included Opening Remarks and a Business Overview presented by Olivier Bouret, Vice President, North American Integrated Supply Chain, Biscuit. The parties then exchanged initial proposals, and Hassan Azar, Sr. Director of Compensation & Benefits, delivered detailed presentations to the Union committee on the Company’s proposed Pension and Health Care Plans.

Negotiations will resume on Thursday, Feb 18, 2016.

Here is more information, including copies of the Company’s Opening Remarks, Business Overview, Summary of Company's Initial Proposals, and the detailed presentations on the Company’s proposed Pension Plan and Health Care Plan.

February 16, 2016

2016 BCTGM Contracts Negotiations Update

Representatives from the Company and Union met today beginning at 12:00noon in Charlotte, NC.

Negotiations are scheduled to resume at 10:00am on Wednesday, Feb 17, 2016.

February 1, 2016

Contract Negotiations Update

Contracts between the Company and the BCTGM that cover five Company bakeries and three DSD sites expire on February 29, 2016. Company representatives have met locally with BCTGM representatives in Fair Lawn, Atlanta, Chicago, Richmond and Portland. The Aurora Distribution Center meeting is scheduled for February 8, 2016. Dates for Addison and Norcross are to be determined. We look forward to beginning discussions on a national level on February 16, 2016.