Pepsi London members achieve three-year agreement

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October 20, 2020

On October 7, 2020, members employed at Pepsi London ratified a new three-year collective agreement.

The new agreement includes provisions for several Voluntary Severance Packages (VSPs). One $25,000 VSP will be available in 2021, and another three will be available in 2022. VSPs will be offered by seniority to members with at least 20 years of service.

Members of the Union Negotiating Committee achieved an improved combined allowance for Boots and Uniforms. The new combined allowance will let members at Pepsi London choose how they spend that money on those items. This allowance will provide warehouse workers with $550 and outside workers with $600 per contract year

New posting language contained in the agreement ensures every vacancy will be posted and filled in accordance with the collective agreement.

In the first year, all bargaining unit employees at Pepsi London receive a lump sum of $1,000. Employees will see a rate increase of 50 cents per hour in the second year, and another increase of 55 cents per hour in year three. In addition, the shift premium will improve by 15 cents per hour.

Members will benefit from an improvement to the Pension Multiplier which increases to $65 per month as of March 1, 2020, and will apply to service dating back to March 1, 2019.

Effective January 1, 2021, the company shall pay 100% of the premium for the 35% Core Long-Term Disability (LTD) benefit.

This will save employees 34 cents per hour. Going forward, new language protects members from paying for future increases to the premium cost as the employer will now assume that responsibility.

Other monetary improvements include $30 more per year for employees’ tool allowance. The employer will contribute $750 per year toward the UFCW Local 175 Training & Education Fund.

This collective agreement covers 55 bargaining unit employees at the Pepsi facility in London, Ontario.

Union Negotiating Committee: Paul Lekx, Mike Mackenzie, Ian Scanlan, Mark Sop, and Union Rep Lee Johnson-Koehn.

Pepsi London 2020 Union Negotiating CommitteeUnion Negotiating Committee for Pepsi London

See more negotiation updates from the industrial food sector, including beverage production.

Catch up on all the negotiation highlights from across the province here.

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