Quaker Oats union ready for labor talks

The relationship between Quaker Oats/PepsiCo and the union that represents 698 of 700 employees at the company's plant in Cedar Rapids is viewed as a positive for negotiations on a new four-year contract.

Members of Retail, Wholesale & Department Store Union-UFCW Local 110 overwhelmingly approved a four-year agreement in November 2012 with PepsiCo-Quaker Food and Beverage.

Roger Grobstich, RWDSU-UFC international vice president, is encouraged about the atmosphere going into talks on a new contract.

'We have a good relationship with Quaker Oats-PepsiCo,” Grobstich said. 'Both sides don't have too much at this point. We will probably argue about wages, but other than that we have a good relationship here in Cedar Rapids.”

PepsiCo on Oct. 6 reported a better-than-expected quarterly profit as its commodity costs fell and demand for its snacks and non-carbonated beverages rose in North America. The company raised its target for 2015 adjusted earnings growth to 9 percent from 8 percent.

'We find the second consecutive guidance raise particularly encouraging, given the category volatility that (PepsiCo) continues to face,” said Cowen and Co. analyst Vivien Azer in a note.

Grobstich said RWDSU-UFCW worked with Quaker Oats after the June 2008 to assure that members continued to get a 40-hour paycheck while working to get the plant restarted and repaired.

'Our members really went to bat in getting the elevator department back up and running,” he said. 'The company took a $300 million loss, but 51 of our members lost their homes and belongings in the flood.”

Last week, Grobstich was elected as a vice president on the RWDSU-UFCW international executive board when it met for the first time in Cedar Rapids.

'We're in a very political state,” Grobstich said. 'I will be a voice for our members and able to endorse a candidate who will be labor-friendly and hopefully the next president of the United States.”