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Hershey's longest strike ends with compromise

By:Judy Etschmaier, Staff Writer
06/12/2002
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      The air will soon smell like chocolate again in Hershey.
      Since Chocolate Workers Local 464 members voted overwhelmingly to accept a compromise agreement drafted in last Thursday's 11-hour negotiation session, many said they are happy to be going back to work.

      Nearly 90 percent of the union members who voted at the Milton Hershey School's Founders Hall on Saturday approved a new four-year agreement. The final tally was 1,846 to 226.
      Things already seemed to be looking up on Friday, when striking workers heard of the tentative settlement and began smiling on the picket lines, which they maintained until Saturday.
      "I'm ready to go back to work, make some money and make some candy," shipping department employee Lang Lawis said.       
      "This is part of the democratic process, a peaceful way to settle our grievances. In a lot of places, people throw bricks or do damage. Here, there was a major grievance and 2,700 people settled peacefully. That's big," Lawis said.
       "Sometimes you gotta have something so you can move forward. This was a good strike."
      On the contentious issue of the workers' contributions to their health care plans, the union got what it fought for - maintenance of a 6 percent contribution in the low-cost plan for the term of the contract, which will expire Oct. 30, 2005.
      In turn, the union agreed that the workers would give up 4 cents of their hourly pay raise in the first year of the contract, 6 cents in the second year, 2 cents in the third year and 7 cents in the fourth year. Lead union negotiator Robert Oakley said it was a compromise that appeared to be acceptable to both sides.
      "Both sides got a fair share," Local 464 Business Manager Bruce Hummel said. "For us, what's important is the bottom line - the net take-home pay and what kind of coverage they get." 
      The employees also will receive an across the board pay raise of 50 cents immediately, 3 percent in November of this year, 40 cents in November 2003 and 3.25 percent in November 2004, plus a $525 signing bonus.
      The company says the average Hershey production worker earns about $18 an hour, although many of the striking employees said they make less. A worker now earning $18 an hour will earn nearly $20 an hour by the end of the contract.
      "Overall, it looks like we came out on the better end of the deal," Judy Bolen, a West Hershey Plant employee, said during the voting. "It's not 100 percent, but it looks pretty good." 
      Not all of the workers were in favor of the settlement. Some said they were hoping for a better deal in retirement benefits, although the company will guarantee them a minimum average return of 8 percent on the investments it makes into their supplemental retirement account.
      It's a sign of the times that many people are worried they won't be able to save enough money to live comfortably in retirement, several workers said.
      "It was mainly the younger people who were disappointed that they didn't get the retirement insurance they wanted," according to Gary Lebo, a press room employee who has worked at Hershey for nearly 29 years. Only 20 percent of the current workers were there in 1980 (when the last strike occurred), he said.
      Hershey Foods spokesman John Long issued a statement last week saying the company was pleased to have reached an agreement with the union.
      "It has been a long and difficult process for both sides, during which we have tried to balance the interests of our employees with the long-term needs of our business. The contract strikes a healthy balance between the two and will allow us to return to the task of building a stronger, more competitive Hershey Foods," he said.
      Because of the rising cost of health care, the company first proposed to raise the workers' contribution to their health care plans to 10 percent then to 12 percent over the next four years, which the union said was unacceptable.
      "The people feel they accomplished what they set out to do," Oakley said after the votes were counted. "They had a say, and somebody in the end ultimately listened to them."       
      Hershey Foods spokeswoman Christine Dugan said, "We're pleased that our Hershey and West Hershey plant employees ratified the contract. We're looking forward to resuming operations at those two facilities."
      Some of the workers have been called back and are working this week, but they expect production to start up in stages.
      Union leaders estimated it would take about two weeks before both plants return to normal production levels.
      "They plan to have everybody back by June 24," Hummel said. "First they have to get the chocolate ready, then make the candy, then start wrapping and shipping."
      Hummel said the chocolate workers' situation attracted a lot of interest among employees at the nearby, non-union Reese's plant and that union representatives are meeting with Reese's workers this week. In recent years, groups of Reese's employees have tried to bring the union into the plant without success.


©Hershey Chronicle 2010

Reader Comments
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Added: Thursday June 13, 2002 at 07:45 PM EST
YES THE STRIKE IS OVER, IT HAS BEEN ALONG ONE. SOME THINGS HAVE HAPPENED UPON RETURNING TO WORK , BUT LIKE THEY SAY IT IS TIME TO GET ON WITH IT. I ONLY HAVE A FEW THOUGHTS TO PASS ON. THE COMPANY SENT OUT LUMP SUM VACATIONS -AFTER THE EMPLOYEES FILED
AN APPEAL FOR UNEMPLOYMENT, MAYBE JUST A COINCIDENCE! THAT WAY THEY RECEIVED A HOLIDAY OR VACATION PAY AND CAN'T COLLECT? THEN UPON SETTLING THE CONTRACT , THE PEOPLE THAT WERE NOT CALLED BACK WERE TOLD THAT THE COMPANY WOULD NOT BLOCK THEM FROM GETTING UNEMPLOYMENT UNTIL THEY WERE CALLED BACK, WELL WHAT DO YOU KNOW HERSHEY SENT US A SPECIAL CHECK FOR OUR SIGNING BONUS, MINUS 38 +% IN TAXES!!!! NOW THOSE PEOPLE HAVE TO CLAIM THAT AT UNEMPLOYMENT TOO. NEEDLESS TO SAY THEY WON'T GET A PAY. THEN TODAY WE GET A LETTER FROM MR BRACE (SIGNED RAY) WE ARE ON A FIRST NAME BASIS NOW. ANYWAY HE TRIED TO EXPLAIN THAT THE CO. REALIZED THAT THE 6 WKS WAS A HARDSHIP TO MOST EMPLOYEES SO THAT IS WHY THEY ISSUED THE CHECKS! I AM NOT SAYING HE IS NOT SINCERE BUT COME ON, WHAT'S UP HERE? ALL IN ALL I GUESS THEY GOT WHAT THEY WANTED, EVERYONE IS BACK AT WORK AND I MIGHT SAY GETTING THINGS MOVING IN RECORD TIME! WAY TO GO BROTHERS AND SISTERS!!!!!! THEY MIGHT NOT HAVE NEEDED US OR SO THEY SAID BUT THEY ARE SURE GLAD WE ARE BACK! I MYSELF AM THANKFULL FOR ONE THING, I HAVE MY JOB FOR NOW. IN THOSE 6 WKS I HAD ONE THING IN MY MIND I AM LOOKING FORWARD TO RETIREMENT.WE WILL FORGE AHEAD, BUT IT WILL NEVER BE THE SAME THE HERSHEY FAMILY WAS BRUISED BY THE GREED OF THE CO. AFTER ALL AS YOU SEE WE GAVE BACK SOME OF OUR WAGE INCREASE TO HELP KEEP OUR COST AT A LOW RATE. WE HAVE SAID THIS WASN'T ABOUT LARGE NCREASES IN WAGES IT WAS US TRYING TO KEEP WHAT WE HAVE AND NOT LETTING THE BIG GUYS STRIP US OF OUR DEGNITY!

GOD BLESS ALL MY BROTHERS & SISTERS AT 464 NOW LETS MAKE CHOCOLATE!!!!!!
SHARON BRACALE
Added: Thursday June 13, 2002 at 06:18 PM EST
last night i wrote my opinion on strike, in my e- mail i think i left out the word ( funeral)pay for aunts/uncles,when i wrote toward the end of my opinion, if so if it is posted would please correct it, thank you, and thanks for the news you have been posting about the strike.
hershey employee( ROBINSON ILL PLANT)
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