Juicy Profits Not Enough, Snapple Puts the Squeeze on Union Workers

RWDSU members rolled out the (un)welcome wagon for union-busting CEO Larry Young, who is trying to force $1.50 an hour wage cuts on workers making Mott's apple juice, Hawaiian punch, and Roses Lime Juice.

Corporate America has its swagger back—look no further than beverage giant Dr Pepper-Snapple.
The juice and soda maker is working overtime to pulverize union standards at its Williamson, New York, plant.

“The plant manager compared us to commodities in the grocery store,” noted Larry Culver, a 15-year mechanic in the upstate New York facility, “and he said we were overpriced.”

Culver’s co-workers, members of Retail, Wholesale, and Department Store Union Local 220, voted 272 to 15 to reject the company’s April offer to cut wages by $1.50 an hour, freeze the traditional pension, and pare down the already-meager 401(k) plan.

They authorized a strike on April 18 by a similar margin, and are now working without a contract.

OVERPAID?

According to the Dr Pepper-Snapple public relations team, tough economic times are a chance to make “corrections” to workers’ wages and benefits.

But at the table the company was far more blunt. “They told us we were overpaid,” said Culver, a bargaining team member. “And they said with 10 percent unemployment they could find people who would do our job for less.”

Having lived through two plant closings before, Culver warned that other companies in the area—including regional powerhouse Xerox—are watching closely. “We’re just a steppingstone,” he said. “If they can do this in a company with a union, what’s next?”

WALL STREET HIGH-FIVE

For Culver, the company’s attitude couldn’t be any clearer: “It doesn’t matter that we’re making money hand over fist. We don’t have to share it with you.”

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Enter Dr Pepper-Snapple CEO Larry Young, who turned up in the Big Apple yesterday to underline that point.

Young, who raked in a cool $6.5 million last year, was in town for a round of back-slapping and high-fives at Wall Street’s current fortress of evil, Goldman Sachs headquarters in lower Manhattan.
Fortunately, dozens of RWDSU members were also on hand—a welcome wagon complete with a 20-foot rat.

Thirteen-year employee Anderson Lopez, asked why the company was coming after pay and benefits, responded, “There is no good reason for it besides greed.”

PUNCHY

Reflecting on Culver, Lopez, and their co-workers, I couldn’t help thinking about another product that comes out of the Williamson facility—Hawaiian Punch.

When I was a kid, and commercials were less politically correct, Hawaiian Punch ran ads where the drink’s mascot, a cartoon character named Punchy, approached some unsuspecting tourist with the question, “How about a nice Hawaiian Punch?” and then proceeded to flatten the guy.

Workers everywhere have been taking it on the chin for too long. Here’s hoping CEO Larry Young is the one who gets decked this time.

Comments

avolla (not verified) | 05/22/10

Your right don't assume you know whats going on employees do not make anywhere near $100/hr. the majority less that $20. First, We Don't Care how much CEOS make, however we do care that in tough economical times, Larry Young Ceo see a union contract as a time to go in any make a killing by going after wages, MEDICAL INS, pensions, 401K and more mandated overtime. Second, what people don't know is that DRpepper only obtained the Motts plant 2-1/2 yrs ago through a demerger at which time concessions were made.and more than doubled their job responsibilities of line technicians. You have full operations, facility cleaning, maintenance, and do all on line quality checks to ensure a good product to our customers with NO increase in PAY & LOSS of annual BONUSES. Other employees lost their jobs. We have grueling hours and conditions at work, and basically NO family life because you are working 12hr shifts. DR PEPPER/SNAPPLE has no regards for any of their employees. Third, make no mistake about it, I don't believe CEO- Larry Young is taking any money out of HIS OWN pocket to pay anybodies medical or other benefits. Remember its the workforces that make DrPepper Snapple Group so profitable. Wegmans has been ranked best place to work & DR Pepper Snapple has got to be voted worst company to work for.

beachbum (not verified) | 05/14/10

I think there's an awful lot of assumptions going on here: First, the article doesn't say how much the union workers are getting paid and for what jobs. An assembly-line worker could be making $100 and hour for all we know (hypothetically). In that case, I would agree with the "higher-ups" - they ARE overpaid! Secondly, who are we to decide how much a CEO's job is worth? That's completely subjective depending on how you grew up/where you live/what you do for a living, etc. If 6.5 million is too much, how much is acceptable? $2 million? $200,000? And who are we to decide? Professional football and baseball players make millions of dollars a year and no one complains about them. Thirdly, the CEO making 6.5 million employs hundreds or thousands of people AND pays for (I'm guessing here) most of their and their families' health insurance and who knows what other benefits. Shouldn't some one that contributes that much to society and the economy be rewarded a far greater amount of money than an employee that is not doing the same?