Local 727 Opens Pepsi Negotiations with Comprehensive Contract Proposal

| February 21, 2020

Teamsters Local 727 and PepsiCo Beverages North America opened negotiations today for a new successor collective bargaining agreement covering all Pepsi members employed at the Company’s Chicago, Elk Grove, and Kankakee facilities.  The Union bargaining committee opened the day’s bargaining session by presenting the Company with a comprehensive contract proposal.

Some of the Union’s top proposals include:


  • Substantial annual wage raises for all employees
  • Increases in current premium rates
  • Calculating Commission and Transport employees’ pay for vacation using the employee’s total gross earnings rather than the prior year’s W-2


  • 401(k): Company matches 100% of employee contributions up to 10%
  • PHERP: Increase in credited amount for all employees, increase in pension multiplier

Health Care

  • Teamsters Local 727 health care, which is a 100% employer-paid plan, for all Pepsi members


  • Pepsi must maintain separate seniority lists each facility, department, and job classification
  • Classification seniority must strictly be used for vacation, shift, and bidding
  • Departmental seniority must strictly be used for layoffs

Strike Language

  • Guarantee workers’ right to refuse to cross a picket line sanctioned by Teamsters Joint Council 25

Paid Time Off

  • Increased number of paid holidays
  • Raise all employees paid personal days to 3 days each year
  • Increase all employees’ sick days to 5 paid days each year, available upfront beginning on January 1 of each year


  • Prohibit the introduction of a GeoBox or any similar system for the life of the contract
  • Require the Company to bargain with the Union prior to introducing any new technology
  • Limit the length of time Blue Card employees may work before being promoted to a regular full-time employee


  • 3-year contract term

The Local 727 bargaining committee also submitted a comprehensive information request to Pepsi management.

Following the Union’s presentation, Pepsi representatives had an opportunity to present the Company’s own proposals.  While Pepsi only came prepared with a few non-economic proposals, the Company did state that it would develop and present economic proposals as negotiations proceed.

“We have quite a few proposals and it will take us some time to go through all of them, but our Local 727 bargaining committee is determined to secure the best possible contract for our members,” said John Coli, Jr., Secretary-Treasurer of Local 727.  “And with our Pepsi members united, that is precisely what we will do.  We will not give up the fight until we have secured a fair agreement that respects our members’ contributions and years of dedication to this Company.”

Local 727 and Pepsi are currently scheduled to resume negotiations on Tuesday, March 3 and Wednesday, March 4.  The Union will update members following the next bargaining session.

Members with questions should contact Local 727 Lead Business Representative Zach Frankenbach at (847) 696-7500 or [email protected] or Local 727 Business Representatives Mike DeGard at (847) 696-7500 or [email protected].

Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law.  The union does not forfeit its right to make any and all supplemental arguments.

Category: BEVERAGE, Pepsi

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