Union, Nestlé reach settlement on payment issue

An issue with Nestlé's payroll system resulted in inaccurate payments to some of its employees in December.
Nestle Eau Claire
Nestle Eau Claire(WEAU)
Published: Jun. 22, 2022 at 4:15 PM CDT
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EAU CLAIRE, Wis. (WEAU) - The United Food and Commercial Works Union Local 1473 reached a settlement with Nestlé on an under- and over-payment grievance filed on April 18 at Nestlé's Eau Claire plants.

According to a press release from the union, the settlement saved Nestlé employees from having to repay $160,000 due to company payroll errors.

“Members stood in solidarity while the local union processed the grievance against Nestlé and unfair labor practices through the National Labor Relations Board,” Jake Bailey, UFCW Local 1473 President, said in the release. “This settlement ensures that the Nestlé members that weren’t paid correctly were made whole and the overpaid members will not have to repay the thousands of dollars of overpayments made in payroll errors.”

In an April release, the union said evidence provided by Nestlé to the union showed Nestlé “has failed to pay hundreds of the UFCW members properly since December of 2021, after a cyber attack of Nestlé's time-keeping service, Kronos.” The April release said that after the cyber attack, Nestlé began manually tracking employee work hours and subsequently under-paying or over-paying hundreds of union members at the plant. The Union said they demanded that Nestlé correct the underpayments, but said in a press release that “Nestlé management has failed our members.”

In April, a Nestlé spokesperson said that the company was one of many impacted by Kronos’ cybersecurity incident and said that they took steps to make sure none of its employees’ personal data was compromised and to make sure that employees were paid on time and accurately. The spokesperson said that the factory teams worked with employees on payroll adjustments and “kept UFCW 1473 engaged throughout this process.” The spokesperson added that making sure employees are properly paid is a top priority for Nestlé.

A Spokesperson for Nestlé issued a statement Wednesday.

UFCW Local 1473 represents Nestlé workers in Eau Claire.

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