2016 Jim Beam strike

2016 Jim Beam strike
DateOctober 15–21, 2016
(6 days)
Location
Caused byDisagreements over a new labor contract
Goals
  • Hiring of more permanent workers
  • Hiring of additional full-time workers
Methods
Resulted inStrike ends in terms viewed favorably by union members.
  • Cap on temporary workers at 25 percent of the workforce
  • End of the two-tier wage system for union members
  • Reduction in number of temporary workers
  • Reduced hours
Parties

The 2016 Jim Beam strike was a labor strike involving about 250 workers for the Beam Suntory subsidiary of the Japanese alcohol company Suntory, which produces the Jim Beam brand of bourbon whiskey in the U.S. state of Kentucky. These workers, all union members of the United Food and Commercial Workers Local 111D, worked at two distillery facilities in Clermont and Boston, Kentucky. In 2016, this local union began to negotiate the terms of a new labor contract with the company, and although a tentative agreement had been reached by October 11, it was voted down by a ratio of about ten-to-one by the union members, who also authorized strike action. The primary concerns of the members involved included, among other issues, job security, scheduling, overtime, and the hiring of temporary workers in lieu of permanent, full-time employees. The contract negotiations came during a major boom period in bourbon production, and some workers at the distilleries reported having to work about 70 hours per week. Additionally, the number of temporary workers had increased drastically, and union members were seeking to have this number reduced and for the company to hire more permanent employees. While an updated contract proposal was voted on on October 14, it was similarly rejected by the union members, and with no replacement contract in place as the existing contract expired at midnight, the strike began the next day.

The strike continued for approximately one week, during which time the company instituted a contingency plan that allowed the distilleries to remain in operation. On October 16, union and company officials met for the first time since the strike began and in the following days resumed negotiations. Negotiations with a federal mediator present resumed on October 18, and by October 20, a tentative agreement had been reached. The following day, union members voted 204–19 to accept the contract and end the strike. Among the provisions of the contract were the elimination of a pay difference between union members, a cap on temporary workers at 25 percent of the total workforce, and a commitment to hire at least 27 full-time employees. Within two weeks of the strike's conclusion, the company had already hired seven full-time employees and had ended mandatory overtime. In general, union members viewed the strike as successful.


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