Posted on: Wednesday, September 15, 2004

Union wary of Foremost motives

By Sean Hao
Advertiser Staff Writer

A union representing 110 of the 120 Foremost Dairies-Hawaii workers yesterday expressed concerns that the company's plan to shut down in November is part of an effort to reorganize the milk processor as a non-union firm.

After meeting with Foremost, Mel Kahele, president of Teamsters and Allied Workers Local 996, said the company might not close and attempts were being made to keep the company open for business.

"We will be monitoring the company very closely," Kahele said.

Foremost spokeswoman Lynette Lo Tom said the company is exploring ways to keep the Foremost brand alive but has no plans to keep its Kalihi plant open. "Financially, it just doesn't make sense," she said.

The Foremost name may be among the company's most valuable remaining assets. A group of investors, including Big Island dairy owner Bahman Sadeghi, purchased Foremost in January.

According to state records, the Kalihi plant was sold to Newfair Investments LLC for $9 million in January and leased to Foremost. Newfair is run by Island Holdings Investments LLC, whose officers include Colbert Matsumoto and Franklin Tokioka, executives for Island Insurance Cos.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.