IAM Members in Puerto Rico Ratify a Restructuring at PepsiCo Frito-Lay

IAM Local 2725 members at PepsiCo Frito-Lay in the island of Puerto Rico have ratified a new Sales Format Model by unanimous vote.

The new sales format puts in place a new business model for IAM members and the company, allowing for a restructuring of classifications of sales format, routes and commission percentages. The 145 IAM members employed at PepsiCo Frito-Lay serve as salespersons for the chipmaker.

The commission percentage for salespeople working with mid-size retailers increased from 7.25 percent to 8 percent. The company agreed to allow the IAM to represent all the merchandisers currently hired by a temp agency. The company also agreed to rehire the small number of employees whose positions were lost during the reclassification. Those employees will join a new Merchandiser unit that’s expected to bring an additional 92 new workers under a separate IAM contract.

“This new sales format brings changes in the salesmen’s routes which have been a challenge as it is being implemented,” said Local 2725 Business Representative Jose “Lole” Rodriguez Baez. “But our Stewards and our Servicing Representative have maintained close vigilance in the process so that the management addresses all situations our members are confronted with.  The IAM will ensure all prior working conditions and benefits continue to be honored.”

“With the current economic conditions in Puerto Rico and the company’s petition for relief due to declining sales, the IAM found a way to protect our members, preserve their work and benefits, while at the same time grow our membership,” said IAM Southern Territory General Vice President Mark Blondin. “Thank you to IAM members at PepsiCo Frito-Lay for their hard work and solidarity during this restructuring process. And a special thanks to Southern Territory Special Representative Javier Almazan, Local 2725 Business Representative Jose Rodriguez Baez, the entire negotiating committee and the IAM Legal and Strategic Resources Departments for an outstanding job in ensuring Local 2725 members a better future.”