On strike

By Donna Riley-Lein
Independent Staff Writer
Posted 7/17/08

ROBERTSDALE, Ala. — The Coca-Cola distribution plant in Robertsdale has something new on the right-of-way beside the facility on Highway 104 — picketers.

Members of Teamsters Local 991 voted July 12 to strike to bottler after the company …

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On strike

Posted

ROBERTSDALE, Ala. — The Coca-Cola distribution plant in Robertsdale has something new on the right-of-way beside the facility on Highway 104 — picketers.

Members of Teamsters Local 991 voted July 12 to strike to bottler after the company offered a contract that was not acceptable to workers.

“They want to change our 401(k)s,” said one picketer at the Robertsdale facility who would only give his name as “Tony.”

“There are people here who have worked here 34-36 years who could never make up the loss (to their pension plans), said “Roger.”

That’s not true, says Lauren Steele, vice-president of corporate affairs for the local bottler, Coca-Cola Consolidated, headquartered in Charlotte, N.C.

“There is a lot of confusion and misinformation,” said Steele in a telephone interview. “The employees have to recognize that change is coming, and that this is a more competitive retirement vehicle.”

Steele added that, “We’re baffled over this issue. We wish they would go back to work. We have made a very generous offer.”

Jim Gookins, the secretary-treasurer and business manager of Teamsters Local 991, which represents the striking workers, agrees that pension issues are at the heart of the job action.

“What the company wants is to stop paying into the pension plan,” said Gookins in a phone interview. “The contributions have not increased since 1990, at $69 per week. The federal government told them to increase that to about 8 percent.”

Gookins estimated that by the end of a proposed three-year contract, the company contribution would be approximately $88 per week.

Steele said he hopes the strike will be a short one, pointing out that some union members are losing commissions at the height of the summer season.

That may not happen.

“The guys tell me, even the younger ones, that what they anticipated was a good career with a pension at the end of it,” Gookins said. "The workers have worked hard and look forward to receiving a good pension.”

All the other employees at Coca-Cola Consolidated have migrated to a 401(k) says Steele, whose pension, he says is in a 401(k) plan.

In fact, Steele says, the plan is to move the pension funds into the Teamsters own 401(k) plan.

“It’s a more competitive retirement vehicle,” said Steele. “The rate of return on their plan is better than other plans.”

But Steele admits, changing plans can lead to high emotions. He admits that the company might have communicated its position better to the workers.

“We are moving from a defined pension plan to a 401(k),” Steele said. “It is unsettling. People have to make choices.”

Steele said the proposal includes payments to help older workers make up the difference in expected pensions. But Gookins has said despite the company’s efforts, veteran workers would be harmed, losing “$600 to $800 a month.”

While Steele says there are no plans to go to the bargaining table, the company is, “Ready to talk anytime. The ball is in their court.”

Steele added striking workers will be expected to contribute an average of $1155 per month to continue their health plans under “COBRA,” the Consolidated Omnibus Budget Reconciliation Act.

“It’s their responsibility immediately,” said Steele.

Gookins, however, feels the workers are “dug in,” and are ready to fight about the issue.

As for supplies of Coca-Cola products, which includes Coca-Cola classic diet Coke, Sprite, Mello Yello, Dr. Pepper, Mr. Pibb, Fresca, Fruitopia, Minute Maid flavored soft drinks, Minute Maid juices and Dasani water, Steele says deliveries are being made using supervisors, members who have crossed the picket lines, and temporary workers.

“There’s plenty of product for people to drink,” said Steele.