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Company Changes Plant-Closing Deadline

May 9, 1986

MADISON, Wis. (AP) _ The Oscar Mayer Foods Corp. says it will give union workers at its Perry, Iowa, hog-butchering plant until midnight Wednesday to approve a contract proposal.

Company executives said Thursday that, if the United Food and Consolidated Workers Local 1149 rejects the proposal, it will permanently close the plant, which employs about 730 people.

Union officials said there would be a meeting tonight to discuss the new plan, which guarantees the plant would remain open for at least 18 months.

Prior to Thursday’s announcement, the plant was scheduled to close today unless the union accepted a company proposal.

About 630 union workers have been laid off since April 4, when they rejected the company’s last offer.

Oscar Mayer and union officials in Perry met earlier this week on the new contract.

The union rejected the previous contract because it did not have a guarantee the plant would keep operating, according to Local 1149 President Jim Olesen.

The proposed wage package in the latest plan remains the same: An immediate increase in the current $8.69 base rate to $9, then increases to $9.10 an hour in 1987 and $9.20 an hour in 1988, the company said.