Contract negotiations getting sticky at North Side soup plant

Pittsburgh Post-Gazette

A private equity company that acquired the former H.J. Heinz Co. soup plant on the North Side last year has been having a hard time filling job openings in recent months. And now, contract negotiations with the union representing workers at the plant don’t seem to be going smoothly either.

On Sunday, members of the United Food and Commercial Workers union representing roughly 85 percent of the workforce at Riverbend Foods rejected a contract proposal that seeks to freeze wages for three years, eliminate pensions and end health care benefits for current and future retirees. Members also voted to authorize a strike if talks fail.

The current pact covering about 400 workers at the former Heinz plant expired Feb. 28.

UFCW Local 23 president Anthony Helfer said two of the biggest sticking points in negotiations were pensions and retiree health care.

About 340 retirees are collecting pensions, he said. The company wants to cash them out at significantly less than what they are entitled to receive, he said. “These people have budgeted what to live on based on their pension.”

Pensions for current employees would be replaced by contributions to a 401(k) savings plan.

The elimination of retiree health care benefits is set to take effect on April 1, according to a copy of the proposed contract obtained by the Pittsburgh Post-Gazette.

The owner of the plant is Texas-based private equity firm