Bakery workers
strike looms

Union employees at Fresh Start
Bakeries in Waipahu may
reject the company's final
labor contract offer

CORRECTION Friday, January 28, 2005 » Fresh Start Bakeries is offering teamsters a $1.10 hourly wage increase and a 15-cent pension increase spread over a five-year contract. A story on page C1 yesterday incorrectly reported the raises as occurring each year. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

Union workers at Brea, Calif.-based Fresh Start Bakeries Inc., a leading supplier of baked goods for many Hawaii stores and restaurants, may walk off their jobs if a labor agreement is not reached by midnight Monday.

Negotiations between the Hawaii Teamsters and Allied Workers Local 996 and Fresh Start Bakeries in Waipahu ended yesterday afternoon after the company presented its "last, best and final offer."

The workers handle production and delivery jobs for the company, though an exact count of union employees was not available .

Union bargaining team members oppose the company's offer, and are expected to present the proposal to union workers today for a secret-ballot vote, said Michael A. Chambrella, the union's attorney. If workers reject the offer and Fresh Start Bakeries does not come back to the bargaining table before the labor contract expires at midnight Jan. 31, a strike could be imminent, Chambrella said.

"The union's position is that the company's offer is not acceptable at this time," Chambrella said. "We hope that they will come back to the table. There's still time before the contract expires."

Chris Lopes, general manager of Fresh Start Bakeries, declined to comment.

"If we don't reach agreement by expiration of the contract, it's our policy not to allow members to work without a contract," Chambrella said.

A strike could affect many Hawaii groceries and restaurants supplied by Fresh Start Bakeries, including McDonald's, Burger King, Jack in the Box, Wendy's, Love's Bakery, Costco and the military.

Burger King, which gets nearly all its buns from Fresh Start Bakeries, would seek other sources locally if the Teamsters strike, but ultimately could be forced to fly buns in from the mainland, said Steve Johnson, who oversees 21 Burger King and 28 KFC operations in Hawaii for California-based franchisee Zubair Kazi.

"I know Fresh Start is the largest bakery and there may be one or two smaller operations that could help us, but our competitors would be seeking the same thing and I'm not sure if (the smaller operations) could hold up to the demand," Johnson said.

Bunless burgers, which gained popularity during the Atkins craze, would not be a viable solution, Johnson said, since only about 2 to 3 percent of customers want to go bunless.

"Most people want a traditional hamburger or chicken sandwich," he said.

In its latest proposal yesterday, Fresh Start Bakeries offered workers a $1.10 hourly wage increase and a 15-cent pension increase each year of a five-year contract. The company also wants employees to make a medical co-payment, which would rise by 7.5 to 10 percent during the contract's term. The company also wants to require workers who take medical leave to provide doctor's certification from the first day of their illness, even if their illness falls outside of their health care provider's office hours.

Chambrella does not expect union members will agree to the proposal, he said.

Fresh Start Bakeries workers are seeking a 50-cent hourly wage increase and a 35-cent pension increase per year of the five-year contract. They also have requested that the company maintain current medical benefits with no costs to employees.

Hawaii workers have not gone on strike against Fresh Start Bakeries before, although Teamsters at several mainland Fresh Start locations have walked off their jobs, Chambrella said.