Talks go down to the wire for Progresso's Vineland plant
VINELAND, N.J. - The timer is ticking for the Progresso soup plant. Members of United Food and Commercial Workers Local 152 met Friday with the labor relations team of General Mills over the $20.4 million in cuts that the company is seeking to keep the Vineland Progresso plant open.
VINELAND, N.J. - The timer is ticking for the Progresso soup plant.
Members of United Food and Commercial Workers Local 152 met Friday with the labor relations team of General Mills over the $20.4 million in cuts that the company is seeking to keep the Vineland Progresso plant open.
Last week, Brian String, president of Local 152, said his team had come up with about $4 million in cuts, and was optimistic that further cost savings could be found.
But that might have been premature.
Some familiar with talks between union leadership and its members said the tone had changed this week, and that the union was not in favor of making any more concessions.
"Since we were unable to come up with a package of concessions that met General Mills' required cuts, we will proceed with closing the plant," said one union member who was not allowed to speak publicly. "There is nothing left to do but close the plant. That is why severance negotiations will take place next week."
On Friday, String confirmed that the union rejected making other concessions.
"It was the decision of the members to not put forth a concession package because the company never indicated the issue was labor rates at the facility," he said just after 7 p.m. "That's where we are. We begin effects bargaining on Tuesday, which includes issues involving the health and welfare fund, pensions, and severance packages."
Progresso's decision on July 21 to close the plant came just two months after Local 152 ratified a four-year contract that all but ensured job security at the Vineland plant for that period. A change in consumer tastes away from canned-soup products and toward fresher alternatives is likely one factor threatening the plant. Camden-based Campbell Soup Co. faces similar pressures.
The union has sought the assistance of federal lawmakers, including Rep. Frank LoBiondo (R., N.J.) and Sen. Cory A. Booker (D., N.J.), to determine what federal funds could be tapped to go toward that $20 million mark.
About 370 jobs are at stake in one of the poorest pockets of the state.
General Mills said in a statement last month that it had "tentative plans" to shut the Vineland plant by early 2018 to cut soup capacity amid increasing competition in North America.
"We are planning to continue conversations and meet with both unions again next week," General Mills spokesman Kelsey Roemhildt said by email on Friday.
General Mills disclosed in its financial statement that it was seeking ways to achieve better efficiency and cost savings under a program called Project Century.
"This [Vineland plant] announcement is separate from Project Century, but an extension of that review," Roemhildt said. "The company has been reviewing its supply chain network to identify ways to optimize operations and reduce excess capacity.
"This is about matching soup demand with soup capacity."
State Sen. Jeff Van Drew (D., Cape May) met with General Mills representatives while attending the Conference of State Legislators last week in Chicago. He has also met with Lt. Gov. Kim Guadagno on whether any county, city, and state funds could be tapped to go toward cost savings.
"But before anything can happen, the union has to first resolve its issues with General Mills," Van Drew said late Friday.
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