Who is the bad apple in a labor strike?

Nobody wins in a strike – no matter what the spin doctors say

Collective bargaining is a complex and often misunderstood process, equal parts economics and politics, theater and conflict resolution.

In Williamson, New York, nearly 300 hundred workers who produce  Mott’s apple sauce products for the Dr. Pepper Snapple group have been on strike since late may.   This work stoppage has received a lot of attention in the press, often being characterized as a battle of the little guy against the greedy corporate CEO.   An article that recently ran in The Nation called “Rotten Apples, Core Values“  gives a good overview of many of the issues, although it is has a definite bias towards the labor side of the conflict.

It is easy to romanticize a strike as a David vs. Goliath situation, or as the little people standing up for themselves by “fighting the  man”.  This plays well for sounds bites,  politicians, and the media.   The truth is that the potential damage of this type of work stoppage is much more far-reaching, and much less romantic for all those involved, than the sound bites reported by the media make it seem.

here are some of the potential ways in which a work stoppage impacts a community.

• Striking workers lose their income, their benefits, and possibly even their jobs if the strike stretches on long enough.
• The company, portrayed as calculating and greedy loses production,  an experienced workforce, customers, and profits.
• The local community can be thrown into disarray since workers no longer have money to spend, and the company is not buying as many supplies or raw materials.

In Williamson, the economic impact of the Mott’s stike could be very high.  According to Jim Allen, president of the New York Apple Association, more than 20 percent of apples in New York   are purchased by Mott’s, and 160 of the 700 growers sell to the company.    “Right now there’s tremendous concern that we’re going to be in trouble in the fall,” Allen said. “If the plant was not to operate, there would be a $100 million loss to the area in a heartbeat.” (from the Nation)

The point here is that no one, not even a completely greed driven company enters this type of a situation lightly.  A lot of time and thought, and a great deal of planning goes into preparing for collective bargaining.  Strike contingency planning is just one piece of this process.  I have created 40 or 5o such plans, and never had to use one.

It is not cheap to operate a plant through a strike, even when you are hiring replacement workers like Mott’s is doing.  Many extra costs are incurred during a strike situation, including extra security, the added costs of hiring and training replacement workers, and the real costs of lost productivity.  There are also the intangible but real costs of bad publicity, brand damage, and the loss of customer good will.  I am not defending Mott’s here,  just pointing out that they are spending a lot of money on this situation as well, and are incurring a lot of risk of their own.

A behind the scenes look at collective bargaining

Starting next week, I am going to write a series of posts offering a behind the scenes look at what happens both at and away from the table during collective bargaining.   For starters, here is a look at the chronology of how Mott’s and their union came to be locked into a serious and debilitating strike, adapted from the Nation article:

• Mott’s opening proposal:   $3 per hour wage cuts across the board, eliminating the pension for new employees, reducing the employer match on the 401(k) from 5 percent to 4 percent, and instituting a health care plan with higher co-pays and premiums. In addition, it would have allowed the company to shift workers through titles and wage scales from day to day.
• Through 22 bargaining sessions, Mott’s held firm on its proposals until days before the April 15 expiration date of the contract, when DPS said that if the union accepted new terms by the expiration date, it would cut benefits but leave wages untouched. If the union didn’t, the company would declare an impasse and implement a wage reduction of $1.50 per hour.
• The union didn’t accept the offer, voting overwhelmingly to authorize a strike if no agreement could be reached.
• DPS then made one final pitch: if the union changed its proposal to a wage freeze and benefit cuts for the three-year contract, DPS would   settle because it would have shifted the blame for  the diminished contract onto the union.
• Local 220 walked out, and after its last offer—leaving benefits untouched but accepting a three-year wage freeze, plus a signing bonus—was rejected by DPS on May 21, the union began its strike at 6 am on May 23.

What is your take on this strike – good business or corporate greed?  Leave your thoughts in the comments.

Related articles by Zemanta

• Mott’s Workers Battle ,Out-Of-Town Replacement Workers And A Company Now Sending Production Down To Virginia | Greater Southeastern Massachusetts Labor Council (cccentral.posterous.com)
• In Mott’s Strike, More Than Paychecks at Stake (nytimes.com)
• Striking Mott’s workers blocked from putting leaflets in grocery aisles – RocNow.com (cccentral.posterous.com)
• Picket Line Against Dr Pepper Snapple Group (NYSE: DPS) Extended to National Fruit Product Company, Inc. in Winchester, Virginia; National Fruit Now Co-Packing Mott’s struck product – MarketWatch (cccentral.posterous.com)

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Tagged as: Business, Collective bargaining, Employment, Health care, Nation, New York, Pepper Snapple Group, Strike action, United States, Williamson New York