In Struggling Puerto Rico, IAM Contract Gives Frito-Lay Workers Stability

Members of IAM Local 2725 in San Juan, PR, overwhelmingly ratified a three-year contract with Frito-Lay.

Machinists of Local 2725 in San Juan, PR, have overwhelmingly ratified a three-year agreement with Frito-Lay. The 116 Sales Associates negotiated a performance bonus and kept their current commission structure, which the company was looking to change.

The current sales commission structure was negotiated in 2014 and ratified by unanimous vote.

“The biggest issue this round of negotiations was sales commission,” said Local 2725 Directing Business Representative Jose Rodriguez-Baez. “The company wanted to implement a flat base pay with a commission based upon estimates of route sales, but the membership was completely against it. We were able to prevail and kept our sales commission structure, as well as a performance bonus of $1,000. Our members were pleased we were able to hold the line for them.”

Puerto Rico is facing a severe degree of uncertainty as the U.S. territory is in the midst of a $70 billion debt crisis, a 45 percent poverty rate and the threat of a collapsing economy. Congress is moving to restructure Puerto Rico’s debt, but the proposed package includes tough austerity measures that will hurt workers and retirees.

“Puerto Rico is going through tough times right now,” said Southern Territory General Vice President Mark Blondin. “The Southern Territory wants to thank Legislative Director Hasan Solomon and Legislative Representative Monica Silbas for their tireless work in working on Capitol Hill to protect the rights of working families in Puerto Rico.”

“I’m proud of Grand Lodge Representative Javier Almazan, Directing Business Representative Rodriguez-Baez and the Negotiating Committee,” said Blondin. “The strong IAM contract gives the members some stability during uncertain times.”