Union calls for federal mediator to help resolve Hormel contract impasse

Published 12:00 am Wednesday, September 10, 2003

AUSTIN &045; A federal mediator will be asked to help solve an impasse between Hormel Foods Corporation and the United Food and Commercial Workers international union.

Bill Schmitz, UFCW international vice president and director of the union’s food processing division, has contacted the Federal Mediation and Conciliation Service.

&uot;We are hopeful that with a federal mediator, we can get to the bargaining table and work out a contract that we can recommend for acceptance,&uot; Schmitz said.

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After months of talking, Hormel Foods made an offer to the union last week. On Sunday, meetings were held to explain the company’s proposal and make a recommendation. The international union recommended the company’s offer not be accepted.

More than 90 percent of the union’s membership agreed and voted to reject the company’s offer, according to Greg Denier, an international union press spokesman in Washington, D.C.

The union represents more than 3,000 workers at Hormel Foods facilities in Beloit, Wis., Fremont, Neb., Atlanta, Ga., Algona, Iowa, and the flagship plant at Austin.

James A. Jorgenson, senior vice president and lead negotiator for the company, said the company was disappointed in the union’s rejection Sunday.

&uot;Hormel Foods leads the industry in wages and benefits it offers its employees,&uot; Jorgenson said in a statement issued Monday. &uot;The contract presented to UFCW members for vote Sunday would have continued this leadership position.

&uot;Certainly, we are disappointed the contract was not accepted. It is anticipated that both sides will return to the table in the coming weeks.&uot;

Local 9 president Gary Morgan had no comment to make after the UFCW’s overwhelming rejection of Hormel Foods’ offer. Also Sunday, the union membership accepted the international’s recommendation to authorize a strike. That hasn’t happened to a Hormel Foods bargaining unit since 1985.

Schmitz said the strike vote reflects unresolved differences between the company and workers over the proposed economic package, including wages, health benefits and pensions.

&uot;We believe the company can make some improvements,&uot; Schmitz said, adding the request for a federal mediator was made after the Sunday vote.