Ingredion Statement on Cedar Rapids, Iowa Labor Dispute
From the very start of these negotiations, Ingredion has been committed to reaching an agreement that provides very competitive wages, comprehensive benefits, and enhanced conditions for our people to ensure the successful operation of the Cedar Rapids facility, its continued vital role in the community, and its ongoing support of Iowa farmers.
We have negotiated in good faith and on a regular basis with the union, exchanging numerous proposals and enlisting a federal mediator. Despite our extensive efforts, an agreement was not reached in advance of the August 1 contract expiration, and the union immediately commenced a work stoppage.
The Company’s latest offer, made on July 30, incorporated feedback from the union and included numerous adjustments to our previous proposals, was very favorable and achieved many mutually beneficial items, including:
- Increased Pay: Ingredion is a top-paying company in the Cedar Rapids community, and the proposal provided for improved competitive and market-based wages, including guaranteed annual increases of 3.5% to 7.4% to all employees. Approximately 80% of employees would receive these increases in the form of wage increases and the remaining 20% would be eligible for a lump sum amount of $2,200 or the ability to bid into a job that offers an annual increase. The proposal also addressed a major request from the union by eliminating the two-tier wage structure.
- Growth Opportunities: The proposal created new positions that offer additional opportunities for advancement and meaningful hourly wage increases.
- Enhanced Benefits Package: We proposed a more comprehensive health insurance plan that offers an additional $880-$1,480 of annual wellness incentives and improvements that significantly outweighed the slight premium increase. In addition, we offered to improve benefits related to paid time off for vacation, bereavement leave, jury duty, and offered an improvement in our safety equipment allowance.
In response to the work stoppage, we enacted our business continuity plan and are continuing to operate the facility to fulfill our customers’ orders and mitigate the impact on our operations. Our top priority is the safety and security of our employees operating the facility, the community members of Cedar Rapids, and our suppliers making deliveries to our facility.
As we have formally communicated to the union, Ingredion stands ready to further our discussions with the objective of reaching an agreement that is fair and allows for the opportunity to sustainably build on the facility’s proud 128-year history.