Ratified Pepsi Hamilton agreement includes a number of monetary improvements

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October 8, 2020

Pepsi Hamilton members ratified a new three-year collective agreement on October 3, 2020 following a difficult round of bargaining.

The offer presented to the membership was a final best offer from the company, which was recommended by the Union Negotiating Committee.

The agreement includes Voluntary Severance Packages of $25,000. The company will make these packages available to active full-time employees who choose to sever their employment with the company. These packages will remain available until all have been used.

An improved combined allowance for Boots and Uniforms will allow members at Pepsi Hamilton to choose how they spend that money on those items. This allowance will provide full-time inside workers with $550 and outside workers with $600 per contract year. Plus, members also benefit from an improved tool allowance of $330 per year, up from $275.

Wages will improve through lump sum payments and rate increases over the course of the agreement. In year one, all full-time employees will receive a $500 lump sum payment. In year two, all full-time rates go up by 50 cents per hour. In year three rates will increase by another 55 cents per hour. Effective September 1, 2020, the company shall pay 100% of the premium costs for the 35% ‘Core’ Long-Term Disability (LTD) Benefit. This cost is equivalent to about 50 cents per hour worked and it means that the employer will now assume any increases to those premiums as well.

Members also benefit from enhanced shift premiums.

  • Employees assigned as Lead Hand receive an additional 15 cents per hour, bringing the rate to $1.40 per hour, as of October 3, 2020. This premium further increases by an additional 10 cents per hour in the second and again in the third year of the agreement.
  • The Training premium will improve to 65 cents per hour in September 2020, and to 70 cents per hour in September 2021.
  • In addition, employees working more than two hours beyond their regular eight or 10-hour shift get a meal allowance of $12.50.

The pension multiplier for members improves to $57 per month and it will be applicable to service starting September 1, 2020. Plus, the employer will contribute $1,250 per year toward the UFCW Local 175 Training & Education Fund as well.

This collective agreement covers 26 full-time employees at PepsiCo Hamilton.

Union Negotiating Committee: Dan Gratton, Glydon MacDonald, Jonathon Smith, and Union Rep Jason Hanley.

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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