By 151 votes, the United Dairy Workers employee group voted this week against cutting $5 million in financial perks from the current labor agreement with Wells' Dairy. Earlier, by a slim margin, the employees had elected to re-open the contract to negotiations when the company asked them to consider cuts to help meet financial goals.
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"Wells' Dairy is disappointed that the hourly represented employees did not accept the amendments to the current labor contract as negotiated between the Company and Employee Committee," said Dave Smetter of Wells' Dairy after the ballots were tallied.
The company, he said, remains committed to future success by pursuing business strategies that will ensure financial stability and sustainability for all involved.
He declined to share what those business strategies might be.
"The management is going to follow the contract for the rest of the year," said Neal Kruckenberg, the president of the United Dairy Workers. "What the company is going to do, I don't know."
It's possible Wells' Dairy could go to eight-hour shifts to stop the daily overtime, he said.
"I guess it's their ball game," he said.
With the current contract ending Dec. 31, Kruckenberg added, Wells' will be in negotiations again with the hourly employees before the end of the year. Those negotiations will likely begin in the fall, according to Smetter.
Kruckenberg said the recent voted-down proposal included seven items:
*Revamp the profit sharing program
*Cut current weekend pay in half
*Eliminate Christmas bonuses
*Trim holiday and paid time off hours back from "average daily hours" to eight hours
*Not add raises
*Start overtime pay after 10 hours each day rather than after eight hours
*Cut back on holiday parties
Fourteen employees helped count ballots Tuesday afternoon, Kruckenberg said, and there were 1,200 total votes.
"Some people were gone, some people never vote," he said.
One vote was thrown out because it was marked "OK" rather than "Yes" or "No."
In February when the hourly employees voted by a 14-ballot margin to re-open the contract for possible changes, Kruckenberg said four ballots were tossed. The reason: they were marked both "Yes" and "No."
After tallying the votes Tuesday, Kruckenberg said it was "a sad day for Wells', a sad day for the employees."
The future, he said, has a lot of unknowns in it.
"For now it's business as usual," Kruckenberg said. "We'll keep making ice cream."



Regarding the post by Whiners;
My vote was no before and it would be that way today, regardless of outcome! I'll live by my convictions, thank you very much. if that means less hours, so be it. If it means moving on down the road to something better and a less paranoid employer, I'll do that too!
Consider for a moment this possibility: Wells management has a pretty good idea the week before the vote that it will go down in flames. They find a willing member of the committee (Neal K.) to start talking about Plan B to whomever will listen. No details, just the hint of dire planning. The workers vote no the next week and immediately management starts talking cuts, as promised. Plan B will be started right away but with few details about it, just enough to start a panic. What would be the chances that about two weeks from now or so Wells management comes to the employee committee and says, " Lets all be reasonable and sit down to talk about a few things." What are the chances that this was the plan from the beginning? Panicked, worried employees might agree to anything if you let things go until the right moment. Just something to think about.
-- Posted by proboscis on Fri, Mar 14, 2008, at 9:05 PM
============
Wow, did you miss with that prediction! How's that "No" vote working out for you now? Looks like the Wells offer might not have been too bad after all, huh?
I have always considered myself lucky to have my job at Well's. I only hope my luck doesn't run out anytime soon!!!!
I believe that everyone who is employed by Well's Dairy needs to look at the big picture. Everyone who complains Wells is bad, or unfair need to look at one thing, and one thing only. Most workers at Wells average $16 to $18 Dollars an hour, and everyone there needs to think where in LeMars can you make that besides Wells??
Everyone needs to think of others instead of just themselves. Be thankful you can pay your bills unlike most people you are all fortunate. So stop whining about it.
To noworries
It is great that you can be as positive as you are in these times. I just try and live in the world of reality whereas you live on Fantasy Island.
Consider for a moment this possibility: Wells management has a pretty good idea the week before the vote that it will go down in flames. They find a willing member of the committee (Neal K.) to start talking about Plan B to whomever will listen. No details, just the hint of dire planning. The workers vote no the next week and immediately management starts talking cuts, as promised. Plan B will be started right away but with few details about it, just enough to start a panic. What would be the chances that about two weeks from now or so Wells management comes to the employee committee and says, " Lets all be reasonable and sit down to talk about a few things." What are the chances that this was the plan from the beginning? Panicked, worried employees might agree to anything if you let things go until the right moment. Just something to think about.
LOOK OUT! Above you Sally47, The sky is falling!
I prefer to look at my glass as half full instead of half empty. Read mclovin again. It's not as bad as you would like to believe it to be. Life is sweet in LeMars.
To noworries
Please enlighten the rest of us as to all these skills you profess to have that is required to manufacture ice cream. Does it require a degree to do this work. I cant imagine it would take much more then a week to train anyone to do this work. Also I think you should remember that everyone can be replaced from the top of the company to the bottom. Some are missed more then others but no one is indispensable as you think.
In reference to outsourcing, additional seasonal help, and cutting employee hours; where are these additional people? Wells' has been running ads and trying to hire freezer help for as long as I can remember. ASI has F/T staff committed to hiring Wells' general employees and they can't keep up. I don't see a line forming to work at Wells' for $11-12.
As for the employee ownership, don't hold your breath. That may require a full disclosure of expendatures and I don't think the 3rd generation would care for that.
Just wanted "itdoesntmatter" to know I read his last posted blog and hope I can get him to write for the 5th time "I'm not commenting anymore".
:)
This is fun. Have a great evening all.
To Gullrock: Temporary employees, outsourced employees, can't wait to see the productivity and waste numbers. Give yourself some credit, you are an expierenced ice cream manufacturing employee. Not to be easily replaced without some major downside.
Hey commonsense anyone, i commented on employee ownership about 3 articles ago when this first started about a month ago... I think it would be great if Wells would do that for their employees, they could own shares and they could have a sense of pride in owning this "dog" maybe the stuff you all are talking about would stop and the employees would get listened to...I am all for that. I wish I could buy into it. I think once management says things are better that would be ideal...Bring it to the Committee. I think you ought to get LeMartian Transplant to help you negotiate he does have some good Ideas. But you probably won't read this and we're back to square one and telling me that I clammed up. (I have a life...)
FYI I didn't want to get Le Martian Transplant stressed out...I was merely pointing out the other side of the story...but on this comment page it is only one sided so there's no room for debate. So I am not commenting anymore. You get mad at what I write and when I don't write...can't win with you people...
Hey noworries, that hour is being worked by temporary help, meaning that they are not entitled to all of the benefits, insurance, etc. that regular, full-time employees get.For all of you that supported a no vote, the cuts are already coming. Bids are already being taken for outsourcing upport groups. Thanks alot.
Anybody else notice when "LeMartian Transplant" mentioned employee ownership, "itdoesn'tmatter" clammed right up. Things must not be as bad as they would like one to believe cause they sure arn't interest in sharing the ownership.
Dave Smetter is only the messenger...
"don't shoot the messenger" this is a quote..
Thanks to the Transplant....Must say my "no" vote was triggered by the track record of what the company has been telling us verses what has actually happened....I don't have much faith in the company.
Le Martian Transplant Stop being so critical...I was just trying to get you to look at the other side. You sure have a vengeance. I apologize for touching a nerve. I won't comment anymore I don't want you to hurt yourself...Sorry.
"Fool me once, shame on you. Fool me twice, shame on me."
Credited to an adult speaking to their child.
To Itdoesntmatter
Try not making arguments that have more holes in them than a sieve.
My comments have nothing to do with having a small mind. It has to do with the small & narrow minds of locals like yourself who have lived here so long you have become blindly obedient to this treatment or are part of the "LeMars Elite" whose power base is challenged when people stand up for what they believe. Regardless of the consequences. It has to do with being willing to speak up and not go along with whatever the Wells ask for. This is what the employees of WBB did with their recent vote.
LeMars is not Los Angeles or Chicago. Your comment is without merit. The Wells can move to LA, Chicago or wherever they want to enjoy their life style if they feel scrutiny of their actions is not fair. LeMars will not shut down and turn into a ghost town if they moved.
I have never gone to a Wells for a donation. I would not want to deal with the strings that would be attached. I guess I have taken a Bomb Pop they donated for Ice Cream Days. Does that put me in debt to them? Should I promise not to make anymore critical comments about the 1st family of LeMars? I don't think so!
Has anyone seen management step-up and donate to the cause? Pay cuts to the occupants of the palace? Shouldn't the "pain" be shared by all? Both the nobility and the serfs? How about the members of 3G selling their "investments" and investing the proceeds back into WBB? Put back a fraction of what they have taken! Oh right- CNBC would probably recommend not investing in a company with the recent track record of WBB. Not a wise investment!
If the situation is as dire as claimed, the idea of being partially employee owned should be attractive to management. The success of other companies should show the wisdom of this approach. Who has a bigger stake in seeing WBB succeed than the frontline employees providing the products? I believe that would be the case if the real goal was to save the company and jobs in LeMars. But alas, then G3 would have to be open, honest and truly share the wealth. I cannot see that happening when they can sell the company, move away and pocket the proceeds. What happens to the employees left behind will no longer be their concern. I have a difficult time believing that the welfare of the employees has been a concern of management for quite a long period of time.
The worst aspect of this whole deal is that the mainstay employees and their families are the ones paying, mentally now - financially in the future, for the threats being made and games being played by the management at WBB. I guess that would be Mike Wells. Management needs to come clean on what is going on. Mike knows what the real goal is and I do not believe it has been honestly shared with the employees of WBB and the citizens of this area. It is difficult to believe anything that comes out of Smetter's mouth when all of the actions taken would indicate the company is being prepared to be sold. What is going to happen next is not going to have anywhere near the effect on the Wells Family that it will have on the mainstay workers at WBB.
Sorry that LeMars is not "a nice town" due to people moving in and questioning the status quo which has prevailed for past generations. Come on - open your eyes and your mind! Maybe if Mike comes clean we can all meet at the intersection of Central & Plymouth and sing Kumbaya!
"Judge a man not by his income, but by his outcome."
-Scott Sorrell
I say you give Mike Wells a chance...
Though I am not a direct party of this agreement, I do have considerable interest at stake so I have two cents. The hourly employees earn a higher wage than most employees of similar skill level and education in the area. This is not a fact put in motion in recent years by the 3rd generation, rather a compounding issues dating back to the original wages set forth by the founders. Yearly raises above inflation have made long term employees some of the highest paid general employees in the state. It is a similar issue General Motors is in; past promises, gifts, and wages that they can't honor. This is in no way the fault of the worker, but it has to be corrected or the problem compounds exponentially. So what needs to happen? Top pay needs to be reset, overtime needs to be renegotiated, "gifts" need to be recalculated…..all the things Well's is asking to do. THE KICKER….It is easy for any member of management to see a problem. However the difference between great and poor management is in the solution. So many of the decisions at Well's seem to be for instant gratification. New attendance policies, productivity and quality standards, and now compensation contracts are slapped on the table "effective immediately". Explanations offered if you ask…maybe. How about an implementation plan? A grace period or transition time? Take the recent contract negotiations for example. It is clearly stated Well's need to shave $5 million, NOW. The contract is up in less than a year, but times are so horrible that the contract needs to be renegotiated early. Once renegotiated, all items are effect ASAP. Why not offer to phase the changes in. EXAMPLE ONLY: Cut the "profit sharing" (it doesn't pay out anyway), then maybe half the Holiday pay this year (last year offered), then holiday and vacation pay at the first of the year, and work the overtime in six months later. If persistent on making all changes immediate, then offer a onetime buy-out. The $5 million over 1500 employees is $3333.33 each, offer up a buy-out. Sure this will postpone the return of the $5 million, but it is operating in good faith.
I feel both sides need to give a little and at this point neither side has even offered to give a little. Negotiations has two parts, what you want and what you'll give up.
One more note….anyone that thinks the corporate office is only cutting $5 million is mistaken. All the cuts being offered are permanent. It is impossible to put a final number on permanent cuts as there is one missing factor….time. Take the holiday bonus for example; this cut alone can save the company $5 million if given enough time.
I've worked a lot of places over the years, but never have I seen things like Christmas bonuses and holiday parties in a contract. I naively thought bonuses were based on outstanding personal performance and company profits, and that holiday parties were held if management was in a good mood and wanted to acknowledge a job well done. No wonder Wells workers don't want to see any changes.
regardless were all screwed...wells will do what wells wants to do regardless...a yes vote never secured anyone thier job and to think it would have is foolish...A no vote is just the employees saying NO WE WONT give up what we have earned...and sally we all have the right to voice our opinions...
All those who voted no, should not comment on what happens now. They have taken themselves out of the equation. They had their chance to negotiate and control their future. They forgot the old saying that the tree that bends in the wind lives to be very old and the one that stands firm breaks off and dies. They may have won the battle, but the war is far from over and they no longer get to fight.
WBB needs a housecleaning just like the County, City, and School boards need to be cleansed also. The county board of supervisors is a joke and we have been watching a circus take place
Hey Transplant, i am not going to lower myself to your small mindedness...
To itdoesntmatter-
Investments? You have got to be joking. You mean the little "shack" on the golf course is an investment? I am sure there is a tremendous resale market for a home of this nature in LeMars. Maybe 10 or 12 employees at WBB can pool their resources and move right in!
I think you need to look at the difference between sound business investments and the definitions of arrogance, excessiveness, flaunting, etc.
I have no dog in the fight between employees & management at WBB. My job is not dependant on the future of WBB. Thank God!
I can say this is the first time, since relocating to LeMars, that anyone has said "No" to the Wells. I do not begrudge someone the "fruits of their labor". The BWW operation IS NOT due to the work and efforts of the generation that is running it. They have squeezed what they can out of it and now the greed is coming home to roost.
Either your last name is Wells or you clearly are good friends with them.
I am REALLY sick of hearing the THREATS. The vote is over now let's just wait to see what will happen next. What ever will be will be! To all the employees--Better have in place a "plan B" for yourselves. Pay checks as we knew them are a thing of the past.
it was a no win either way the employees did the right thing with a no vote They could have jacked with the hours and outsourced anyway....the place needs house cleaning on the hill..top heavy still.....the cut they made earlier was all associated with omaha and the milk plant so they have not made any dent on the hill
Lemartian Transplant...I wonder if the Wells family didn't spend any money...what would you be saying? "Probably how come they are so miserly?..." How would you like to pay their income taxes? NOT! If this scenerio were in Chicago, or Los Angeles, or any bigger city, you wouldn't know any part of their personal business, or let alone know what they drove. I would like to see you own a multi-million dollar business and keep everyone satisfied, in this gossipy little Le Mars, Iowa. Get off the Hummers, no-one in the Wells family even owns one...If they were driving Bentleys and Rolls Royces, then I would say you have a legitimate argument.
AS far as the 2nd homes,AND OTHER INVESTMENTS!!! Let em have them, at least someone has taught them to invest their money for tax shelter purposes. You really don't understand business...WAKE UP! DOn't go to them when you need donations either. How do you think they got there in the first place? I guess they should be washing milk bottles still, and never take risks and never grow the business. Small minds just never grow or change...the are stagnant... Watch CNBC sometime and see how the real world is...No wonder Le Mars doesn't grow...if most TRANSPLANTS think like you, then I think Le Mars is not a place for you...it was a nice town at one time.
Any overtime hour reduction will have to be replaced by a newly hired individual. Where else will you get the labor to replace the hour worked. Once an individual is hired and works his 40 hours then he too is a full-time employee receiving all the benefits. Insurance, Christmas Bonus, vacation pay, etc. The cost of these benefits will be about the same or more as the overtime hour saved. It's the old 6 of one, half-dozen of another rule. Believe it or not but I do think Mike is smart enough to know this. Also any new hiries this time of year will be green help and will only contribute to the waste factor.
Hey how come I never hear that lear jet leave Le Mars anymore ? Oh silly me that is one toy that they had to sell. And how come some of the wells are trying to sell their homes and moving out of the town Le Mars has bent over backwards to make just right for them ??????
Way to go "no" voters! You really stuck it to the man. Now the man is going to take away your overtime, he's gonna outsource your jobs, he's gonna get his $5 mil on his own terms, not yours. You had your chance & you blew it. Did option A suck? Sure it did. Does option B suck 100% times worse? Oh yeah! O.K., so we stood up to the Man, so what! Now we can all say yippee, we won as we're standing in line at the soup kitchen. Funny how 675 people suddenly forgot that "The Man" is one who signs their checks. Don't forget, the stuff runs downhill.
To the committee members; Thanks for trying to help the un-helpable.
You tried to negotiate a solution to a problem with the employees best interest in mind. Knowing there would be some kind of a Plan B, you tried to help the employees keep as much of their benefits as possible. You can only lead horses to water, you can not make them drink though. You can not feel bad about the results of the vote as they have to vote for themselves. It seems like the employees thought if they voted this down, Wells would re-negotiate different items. How wrong could they be. I feel sorry for the employees that voted Yes to try both to help Wells and save as much of their present working conditions. It seems the employees forget that the committee is fighting to save their benefits also. They also will loose when the plan "B" is rolled out. The no voting employees have no one to blame but themselves and will change the lives of everyone involved. The community will also feel the brunt of this With the country entering into a recession, the price of fuel, and the rising cost of food. I hopped the employees would have thought this out a little more before voting. I feel sorry for the people who depend on overtime to live on, but this probably created a few more car, boat, and camper dealers in LeMars. Their called banks and credit unions with repo powers. I wish the best to all and good luck in the future.
To Mike Wells
I hope this vote has not made you forget all the statements made in the information meetings that were held before any voting was done. I know you will make drastic changes to the working hours and conditions. I just hope you are still committed to correcting the costly waste that was brought to your attention in those meetings. I really hope things work out at the dairy because I still really like the products. GOOD LUCK TO ALL!!!
It has been interesting watching the developments at Wells as the 3G mismanagement of the oepration has finally taken its toll. This is with the eyes & ears of a person who moved to town in the relatively recent past. It seems the "releasing" of the most experienced employees is a strong business practice at WBB. Everytime they held a carrot out to the town, it was closely followed by a large nasty suppository. WBB has done good things for LeMars. They have extracted a cost from the town as well. I will not opine who may have received the long & short ends of the stick.
The recent developments would strongly indicate that WBB is either going up for sale or has been sold contingent on events occurring. To think all members of G3 would relinguish there authority in the operation "for the good of the business" is naive. The sale of the milk plant and yogurt operations is quite a coincidence. The company is being made lean & mean. The removing of many higher salaried employees from the payroll. Again, a move to make the company lean & mean for sale. If anyone believes that $5,000,000 is going to play a significant roll in WBB becoming #3 in the world of ice cream, I can get you some ocean front property in Nevada. If the 3G members sold their extra homes and toys, that would have a bigger impact than the concessions they want from their employees. Maybe the Hummers, The Hole In The Wall, The Living Center, remove the 4G toys, etc. Wow! Now that would add some liquidity to WBB!! The wealth that has been flaunted in this town under the noses of the employees has been appalling to observe!
I believe it is time that WBB comes clean with its employees and the community of LeMars. Let the employees know where they stand and let them move on accordingly. Let the citizens of Plymouth County plan for the best use of their new courthouse on the hill.
If Mike Wells is such a man of integrity, let him show it. Frankly, everything I have observed is he is no different than any other 3G member with the Wells name. Mike is not looking out for the good of the employees, he is looking out for #1 - The Wells Dynasty.
Faye & the prior generations would be disgusted by what 3G has done to the business they built with their hardwork and sweat.
It should be interesting to watch "the rest of the story" unfold.
To noworries: Don't be naive. This is not going to cost the Wells, it will cost the city, county and state.
Woohoo! Way to go employees! I'm proud to say I'm from Iowa. Standing up and not being bullied by the corporate scare tactics is a great thing and you should be proud.
Congratulations to the employees of Wells Dairy. You have done what no others have had the guts to do. You have said enough is enough and voted NO! The officials of LeMars could not say NO to the Wells family, the county officials could not say NO to the Wells family and the state of Iowa could not say NO to the Wells family. It's time now for the Wells family to honor their end of the agreement. Either go out and hire a couple of hundred people (net gain) or GIVE US BACK OUR TAX MONEY WE GAVE YOU.
Wells is pissed Neil, a.k.a. "Crookenberg" couldn't deliver, perhaps Dave Smetter will now step up and fill the actual role as the President of the pop can union he has been using "Crookenberg" for. This way he can represent the interest of both the committee and Wells, acutally no one knew there was a difference. Does this now mean we will not be paying dues to Neal?