Tamarkin to cease operations by spring; Giant Eagle says decision due to labor dispute

By Kalea Hall

khall@vindy.com

AUSTINTOWN

Rather than build a new facility in the Youngstown area, Tamarkin Co. has opted to close its Victoria Road plant that employs about 200.

Operations there will cease in May.

On Friday, Pittsburgh-based Giant Eagle, the parent company of Tamarkin, confirmed operations are planned to end at 375 Victoria Road because of a labor dispute with about 165 employees who are a part of Teamsters Local 377, and other issues.

“The company provided a final offer two times to the Teamsters Local 377 team members at the outdated and deteriorating Tamarkin facility to extend the labor agreement for four years,” said Dan Donovan, marketing manager of corporate communications at Giant Eagle.

“The offers, which included building a new facility in Youngstown, increasing wages, maintaining health benefits and adding a generous 401K plan, were rejected by the union members both times,” he said.

The Tamarkin retail support center for frozen foods was constructed in 1968. It supplies 427 retail locations across four states, Donovan said.

“Operations are planned to cease at Tamarkin while a third party represented by another Teamster union will operate a frozen-foods distribution center in Ohio,” Donovan said.

Teamsters Local 377 Secretary Treasurer Sam Cook said the company told the Teamsters — which has represented workers for more than 35 years — on Thursday that the facility would close in May.

Cook said the work at the Victoria Road facility is expected to move to a plant in Solon.

“We asked if there is anything we can do, and they said no,” Cook said.

A majority of the 165-member union voted down a contract in October and December that included a switch from a pension fund to a 401K plan.

Under the pension-fund plan, the company contributed $7 an hour, Cook said. But the 401K plan called for a dramatic decrease because just 4 percent of the worker’s gross would be contributed under the 401K plan, Cook said.

“That was a lot of the issue,” Cook said.

Giant Eagle added late Friday in a statement that the rejected contract did not contain any reductions and termed the union pension plan as “failing.”

The contract also included a change to the time frame for employees to call off. Employees were allowed to call off up to an hour before their shift, but the new contract required a call-off to be 24 hours before a shift, Cook said.

“It did contain some modest productivity improvements that are in place at similar distribution facilities, but it also offered to build a new facility in the Youngstown area,” Giant Eagle also said in its statement. “Unfortunately, the team members rejected that offer, and the company has now found a better alternative for its frozen-food distribution needs.”

Contract changes also impacted allowed sick days and, although there were wage increases, wages for new hires were to change.

Without acceptance of the changes, the company would not build a new facility, Cook said.

“The work is there, but the facility needs some repairs,” he said. “Some didn’t believe it would get to this point.”

The union will meet with members to discuss what is next.

“They will have to decide if they will accept the severance package the company is offering,” Cook said.

If they accept, the company may keep employees longer to smooth the transition to the new operation.

The jobs at the facility, where about 200 work, include tractor-trailer drivers, maintenance workers, mechanics, forklift drivers and others. There also is office staff.

Giant Eagle said it “will partner with other local organizations to provide outplacement support to affected team members.”

In December, U.S. Rep. Tim Ryan of Howland, D-13th, called on Tamarkin and Teamsters Local 377 to continue attempts to settle the labor dispute. On Friday, Ryan expressed disappointment in the announcement to cease operations at the Mahoning Valley plant.

“I hope to learn more details about what is going to happen and when — and to reach out to the parties involved,” Ryan said in a statement. “Every job counts in the Mahoning Valley, and I hope a resolution can be worked out that ensures continued employment for all involved.”