Hanover Foods agreed on a new labor contract this week with a union representing about 300 employees at its Hanover-area plants.
The union — United Food and Commercial Workers Local 1776 — had threatened to strike, with its leader arguing that the company was proposing unacceptable changes to health and pension benefits, as well as inadequate raises.
The new contract, approved this week by a vote of roughly two to one, includes an average annual pay increase of at least 4%, said union president Wendell Young IV, who was still digesting the details as of Aug. 1.
“I think the vote speaks for itself,” Young said.
Hanover Foods is continuing to pay into the union health plan, he said. But workers will be shouldering some of the rising costs tied to medical inflation.
The new contract also will allow for new health plan designs that could help control costs, Young said.
On the pension front, the union agreed to switch from a defined benefit plan to a 401(k) defined contribution plan, Young said. However, the company agreed to make contributions designed to keep the benefits relatively level.
A company spokesperson declined to discuss the details. But in a statement, Hanover Foods CEO Jeff Warehime described the deal as a win for the company and its employees.
“This fair and responsible agreement keeps our enduring commitment to our employees, who have been such an integral part of our century of success,” Warehime said.
The contract is retroactive to Jan. 1 and runs through the end of 2026.
The background: Founded in 1924, Hanover Foods makes canned and frozen vegetables, as well as snacks under the Bickel’s and Wege brands.
The company employs 1,300 people at 11 plants.
