To settle allegations that it violated federal law during a union election at a Virginia plant, The Hershey Co. has agreed to a do-over under a settlement with federal regulators.
- In the original election, held in early 2022, workers at the Stuarts Draft plant rejected joining the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.
- But the union filed a grievance with the National Labor Relations Board, alleging that Hershey engaged in unfair labor practices as part of its efforts to dissuade workers from unionizing.
- “The stuff they were telling the workers was just unbelievable,” said John Price, director of organization for the union.
- The board followed up with a formal complaint in August, leading to the settlement agreement this month.
- In addition to voiding the first vote and ordering a new one, the agreement calls on Hershey to pay $200,000 to a former plant employee who was allegedly fired for pro-union activities.
- Hershey spokesperson Todd Smith said the company believes it acted fairly during the election but settled with the NLRB “based on our overriding principle of doing what is best for the plant and the employees.”
- The company also disagrees with the allegations raised about the former employee, Smith said. “Because a settlement with the NLRB is typically an all-or-nothing proposition, however, the best outcome was the one that allowed our employees to have their votes counted and express their desire to not be represented by a union, even if there are parts of the settlement agreement we disagree with.”
What’s next: Hershey must post notices around the Stuarts Draft plant that spell out workers’ rights during a union drive.
- The notice, which must stay up for 60 days, says Hershey will not offer new benefits to discourage union support, nor will it create an impression that it is watching any union-related activities, among other things.
- In its complaint, the NLRB alleged that Hershey had led workers to believe that their activities were under surveillance and that the company promised improved benefits and better workplace conditions if workers abstained from union-organizing activities.
When’s the vote: It will likely take place in late January or early February, Price said.
- He said he was unsure what the outcome would be the second time, given turnover at the plant since the first vote.
The background: The Stuarts Draft plant, west of Charlottesville, makes a variety of products, including Reese’s Pieces, Almond Joys, Whatchamacallits and Mounds bars. It opened in 1982.
- Hershey, which is based in Dauphin County, invested about $135 million to expand the plant in summer 2020.
- About 1,350 workers were eligible to join the union as part of the original vote. More than 1,000 voted, with 79% saying no.
- As of the end of last year, nearly 6,500 Hershey employees worldwide were represented by unions, according to the company’s annual report.
