Posted on: Monday, October 11, 2004

Meadow Gold contract approved

Associated Press

Workers at Meadow Gold Dairies-Oahu overwhelmingly approved a new five-year contract yesterday, while Hawai'i's only other milk processor prepared to shut down operations a month sooner than expected.

Foremost Dairies-Hawai'i said it was shutting down its Kalihi factory today. The closure was originally scheduled for Nov. 13.

Meadow Gold employees voted 105-18 yesterday to approve a new five-year contract, said Jeanne Ishikawa, a Teamsters spokeswoman. The contract covers about 150 workers.

The new contract guarantees no layoffs for the next three years, no change in medical coverage and benefits, a $2.20 hourly wage increase over the life of the contract and an increase in pension benefits, the union said in a news release yesterday.

"Everyone was really committed to getting the best package possible," Local 996 secretary-treasurer Ron Kozuma said.

Negotiators reached the agreement Oct. 1 after a marathon 18-hour negotiating session.

Meadow Gold has been the only milk processor in Hawai'i since August, when Foremost had stopped processing to assess equipment problems at its plant. Foremost distributed milk and other dairy products processed by Meadow Gold under the Foremost name.

Foremost announced last month it was being forced to close because it couldn't afford to make upgrades necessary to keep the facility open.

"They wanted to keep it open as long as they could," said Lynette Lo Tom, a spokeswoman for Foremost. "But the losses were too much."

The decision to close the 51-year-old Foremost dairy comes nine months after it was sold by House Foods Corp. for an undisclosed amount to a group of investors, including Big Island dairy owner Bahman Sadeghi.