More than 100 factory workers at Keurig Dr Pepper’s Iowa facility returned to work today (24 April), ending a strike which started earlier this month.
The Teamsters’ union announced the end of the strike in Ottumwa, which started on 9 April, late on Tuesday.
"Following a twelve-day strike at Keurig Dr Pepper in Ottumwa, Teamsters Local 238 members have ratified their best-ever collective bargaining agreement at the facility," the union said.
Keurig Dr Pepper offered a new three-year collective bargaining agreement, including a health insurance plan, guaranteed paid time off and an 8% wage increase in the first year of the contract, with additional wage increases each year thereafter, the union said.
“From the very beginning, this fight was about securing justice and holding this employer accountable, and that's exactly what we did,” said Teamsters Local 238 chief negotiator Drake Custer.
“These hard-working men and women were fearless, relentless, and united, because that's what it takes to be victorious on the picket line.”
“With this agreement, they won't be able to work us non-stop anymore, so this was well worth the fight … Everything we did to come together and win this contract. It shows what happens when we stick together,” said forklift driver Andy McCabe, cited by Teamsters in its press release.
Keurig Dr Pepper said yesterday both sides had come to an amicable agreement. "Keurig Dr Pepper is pleased to have reached a new long-term collective bargaining agreement with Teamsters Local 238, which ends the strike and brings employees back to work tomorrow. Both sides found common ground on an agreement that works for the company, for the union and for our hard-working employees.”
Keurig Dr Pepper has 30 manufacturing sites, 170 warehouse and distribution centres and employs more than 29,000 people globally. Its brands include Green Mountain Coffee Roasters and the soft drinks Dr Pepper, 7Up, Canada Dry, Schweppes and Mexico’s Squirt.
The company was formed in 2018 with the merger of Keurig Green Mountain and Dr Pepper Snapple Group.
Today, Keurig Dr Pepper reported first-quarter financial results that included higher net sales and diluted earnings per share.
Net sales increased 4.8% to $3.64bn. On a constant-currency basis, the company's net sales rose 6.4%, driven by volume/mix growth of 3.6% and price increases.
The acquisition of US energy-drinks business late last year contributed 2.9 percentage points to Keurig Dr Pepper's volume/mix growth, the group said.
Operating income rose 4.7% to $801m. Adjusted operating income increased 3.9% to $847m. Net income grew 13.9% to $517m.
Teamster Local 238 represents workers across Iowa. It is affiliated with the International Brotherhood of Teamsters, which represents 1.3m workers in the United States, according to its website.
The Teamsters union was involved in seven weeks of strike action at Nestlé’s Purina pet-food manufacturing plant in South Whitehall Township, Pennsylvania, which came to an end this week with an improved wage offer.
