The final day for employment is D-Day, Dec. 7, 2024.
Clemens Food Group announced Friday that, come Dec. 7, 2024, 193 employees at the Kunzler Lancaster plant, which the corporation recently acquired, will be permanently laid off and the plant at 652 Manor St. closed while a new buyer is found, and the Union has responded back with discrimination and unfair labor practice claims against the Hatfield Township corporation.
Of those 193 affected employees, about 145 are members of the United Food and Commercial Workers union.
"We expect these layoffs to be permanent," stated Brian F. Jackson, of the law firm of McNees, Wallace & Nurick LLC, who issued the layoff letter to Kunzler employees.
(Credit: Local 152/https://ufcwlocal152.org/kunzler-updates-2024/)In response, UFCW Local 152 filed an Unfair Labor Charge against CFG with the United States National Labor Relations Board, claiming CFG has violated three tenets of the National Labor Relations Act.
"UFCW Local 152 and Kunzler and Company are parties to a Collective Bargaining Agreement and are currently negotiating a successor CBA. On June 28, 2024, the Union sent the Employer an information request in connection with these negotiations. To date, the Employer has failed to fully produce the requested information," stated the charge. "Furthermore, the Employer has been reallocating bargaining unit work to other facilities in an effort to undermine the Union, and is thereby discriminating against employees regarding their terms and conditions of employment in an effort to discourage Union membership."
(Credit: Local 152)According to the National Labor Relations Board, Section 8(a)(1) of the Act makes it an unfair labor practice for an employer "to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in Section 7" of the Act.
Section Section 8(3) of the Act states it shall be an unfair labor practice for an employer by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization, and Section 8(5) of the Act states it is an unfair labor practice for an employer to refuse to bargain collectively with the representatives of his employees.
According to its website, Local 152 is scheduled to meet with CFG officials on Wednesday.
In an Monday letter to Clemens Food Group President Brad Clemens, UFCW Local 152 President Daniel Ross wrote that negotiation sessions were held on May 21 and May 23, at which time CFG assured the Union that it was the intention of CFG "to make capital investments to the Lancaster plant and to maintain its full line of operations."
CFG, Ross wrote, requested a break in negotiations until late June or early July for conducting internal productivity evaluations per the Union's proposals.
"When the parties reconvened on June 26, 2024, the Company surprisingly announced that it was moving two lines of production out of the facility to other locations," stated the letter. "Clemens also advised ... that contrary to is initial assurances of investments in the plant its intention was to sell the facility, with new assurances that this transaction would be with a 'keen focus on a sale that would preserve workforce opportunities in the Lancaster area.''
Ross wrote that the Union provided CFG with updated proposals for a successor agreement. Ross claimed that CFG cancelled bargaining sessions and did not respond to proposals.
"I can only hope that Clemens Food Group has done its due diligence and is now prepared to properly compensate the hard-working members of Local 152 in a manner that rewards them for their many years of service building the Kunzler brand," Ross wrote to Clemens. "Rest assured that Local 152 will continue to advocate for its members and see to it that their interests are protected to the fullest extent allowable by law."
CFG issued a WARN Notice to the employees, alerting them of the final day, as a result of the plant closure. The date, per the notice, coincides with the end of production needs for all remaining contracted customers.
"We understand this news is disappointing and distressing for those who will be affected by the closure of the Lancaster facility. We also recognize that all individual’s affected have contributed to Kunzler’s success, and their dedication and hard work have been invaluable to the company’s history. We are committed to supporting these team members during this transition," stated the company in an unsigned media release.
"From the time of acquisition in May of 2024, we made a commitment to all Kunzler team members to be as transparent as possible about any potential changes to operations and to provide regular and timely updates via coordinated company communications. These updates have included operational adjustments, potential plant buyer prospects and statuses, and customer news. Our commitment continues with today’s WARN Notice," stated CFG.
The company said, as final orders are placed for products coming out of Lancaster, team members will be provided consistent work hours and shifts through the "wrap up of operations on December 7, and we will continue to work with the UFCW in good faith to ensure a smooth transition for team members."
CFG said its desire remains that jobs for those in the Lancaster area will continue with new plant ownership.
"We have had many conversations with an interested buyer and remain committed to sharing information with team members as it becomes available," CFG said.
After Dec. 7, Kunzler-branded products will continue to be produced by CFG and will remain available to retailers and consumers.
