Taughannock Falls

Taughannock Falls
from: althouse.blogspot.com
Showing posts with label record profits. Show all posts
Showing posts with label record profits. Show all posts

Tuesday, September 14, 2010

Victory for Mottt's Workers!




Here's a story that really makes me smile. Mostly for the workers, but also because I can now pick up some applesauce at the supermarket!

Striking Workers Declare Victory at Mott’s

by James Parks, Sep. 14, 2010





More than three months after walking out, the 300-plus workers at Mott’s upstate New York applesauce plant declared victory after ratifying a new contract yesterday. The workers will return to work on Monday, Sept. 20, on what would have been the 121st day of the strike.

The members of Retail, Wholesale and Department Store Union/UFCW) (RWDSU/UFCW) Local 220 walked out on May 23 after earlier rejecting a concessions-laden contract from Mott’s, a subsidiary of the Dr. Pepper Snapple Group food and drink conglomerate, which made a $550 million profit last year.

The new contract restores wage levels and continues the defined-benefit pension plan. The workers’ contract at the Williamson, N.Y., plant expired April 16 and even as Dr. Pepper Snapple Group CEO Larry Young pocketed $6.5 million last year, the company demanded a $1.50 per hour wage cut for all workers, a pension freeze for current employees and the elimination of a pension for future employees, decreased employer contributions to the company’s 401(k) retirement plan and increased employee contributions toward health care premiums and co-pays.

The striking workers received strong support from union leaders and elected officials, including AFL-CIO President Richard Trumka, New York State AFL-CIO President Denis Hughes, presidents of numerous other unions, the entire New York State Democratic congressional delegation, elected officials in New York, members of the Canadian Parliament and several global unions and union federations. Union and progressive activists filled the Mott’s Facebook page comments about the corporation’s greed, and so many people posted "There's Something Rotten at Mott's" icons the company closed off public posting of images to its Facebook page.

Says RWDSU President Stuart Applebaum:

Not a day went by without people stopping by to drop off a financial or food donation for the strike fund. The international, national and local community supported us thoroughly, and the RWDSU and Local 220 members want to share their thanks. The RWDSU members at Mott’s have a message for working people everywhere: Stand up for what you believe in, and stay united.


This story should be receiving big-time media attention. I fear it will be relegated to the back pages. I do feel that the pressure we put on them-- with our letters, Facebook postings, boycott, etc.-- helped the workers' cause.

Tuesday, August 17, 2010

Applesauce


This story is close to my heart for a couple of reasons: I love applesauce, and the folks who've been making great applesauce at Motts for generations have been doing so in my native country of upstate New York. Now they are on strike because their new parent company is determined to drastically slash their wages and benefits.

The workers, meanwhile, are incensed that the company is demanding givebacks when it posted record profits last year and increased its dividend by 67 percent in May.

“Corporate America is making tons of money — this company is a good example of that,” said Mike LeBerth, president of the union local representing the strikers. “So why do they want to drive down our wages and hurt our community? This whole economy is driven by consumer spending, so how are we supposed to keep the economy going when they take away money from the people who are doing the spending?”

Dr Pepper Snapple has vigorously defended its stance. “The union contends that a profitable company shouldn’t seek concessions from its workers,” the company said in a statement. “This argument ignores the fact that as a public company, Dr Pepper Snapple Group has a fiduciary responsibility to operate in the best interests of all its constituents, recognizing that a profitable business attracts investment, generates jobs and builds communities.”


Dr. Pepper Snapple Group (parent company of Motts) is making an argument that doesn't hold water. No one is suggesting that they shouldn't try to make profits. They have in fact made enormous profits. Continuing to pay decent wages to its workers is the only way they can operate in the best interests of all their constituents. This is because workers are constituents as much as shareholders. It is true that layoffs at Xerox and Kodak give them a large pool of local workers who would work for low wages. Why is it then necessary to slash wages and benefits at Motts? Is there something wrong with being one of the few decent employers left?!?! This doesn't generate jobs and build communities. It does the opposite! Although incomes of pre-strike Motts workers were fairly modest, they allowed the surrounding community to enjoy the presence of people able to live and spend a few bucks. Pushing everyone down to subsistence level wages will destroy jobs and communities. Ice cream parlors, bookstores, realtors-- they all suffer when an important former source of decent local jobs starts paying like Walmart.