SFG Acquisition FAQs

Are you going to be keeping our driver positions?

I’m glad this question was asked; it’s a common question after an acquisition has been completed and I’m sure that we have team members on both “sides” – SFG & IPC – who wonder the same.

With the close of the acquisition this week, we – IPC & SFG leadership – will begin the process of evaluating how we can most effectively operate moving forward. That process will be extensive, as we seek to understand products, markets, customers, vendors, operational capabilities, personnel, and a host of other factors. As we get further into the integration process, we will ensure that we’re communicating the status of this process. Right now, it’s simply too early to know what – if any – changes will take place.

Mark Berry, VP, People (HR, Safety, & Health Services)

What are your plans with our union? Are you going to continue relations with our existing workers union or are you going to try to dissolve the union? Are you going to match our wages with your other factories wages? If so when? What are your insurance and retirement benefits?

This is a good question. We realize business acquisitions can cause the workforce of the acquired company to be concerned because some companies have used this as an opportunity to reduce or reset worker pay and benefit packages. Regardless of what other companies might do, you should know that we not only have no interest in “dissolving” the union per your question, but we intend to honor the commitments made to the members of UFCW Local 224 by SFG leadership in your contract. As such, your wages, benefits and other terms and conditions of employment will remain consistent with what was already agreed to and ratified.

Mark Berry, VP, People (HR, Safety, & Health Services)

Will you start a 401k and – if so – what will you match?

The good news is that we won’t have to start a 401k plan – both Indiana Packers Corporation (IPC) and Specialty Foods Group (SFG) have had robust defined contribution (401k) plans for several years. It’s a very important benefit for our team members & families, and a way to attract, engage, and retain team members. Because of that, we’re evaluating how to craft a great plan for our combined team members and organization.

Within the next 30-60 days, we will finalize this work. As we do, we’ll let you know – via face-to-face meetings, email, social media, and mailings – how & when we’ll move forward. We’re excited about the opportunity to take two great plans & create one exceptional plan for all of IPC.

The above is not applicable to our UCFW Local 227 team members. Their benefits are based on the existing collective bargaining agreement.

Mark Berry, VP People (HR, Safety, & Health Services) Indiana Packers Corporation

Will my years of service & eligibility for paid time off remain intact?

Over the course of the next several months, combined members of SFG’s and IPC’s HR organizations – working with Mercer – will be reviewing all of our existing benefits, including paid-time off (PTO). Our intent: to determine how best to “harmonize” – if possible – existing policies. Recommendations from these working sessions will be forwarded to senior leadership for review & final approval.

As we look at aligning – literally – dozens of policies and a number of benefits, one thing is certain: some changes will be seen as “good” and other changes will be seen as “not so good” – depending on the individual team member. I hope that team members will look at what is offered in total, focusing on the overall company offering and not one or two specific benefits. To me, “success” in this effort is that our benefits – overall – help to engage & retain our current team members as well as attract, engage, and retain future team members of a quality and at a cost that is sustainable for both team members and the company.

At this point, I can’t specifically address your question. Later in the year, as the work is completed, there will be more to share on this.

Mark Berry, VP, People (HR, Safety, & Health Services)

Who answers these questions and what is the range scope of questions that can be asked? Any plans to expand this to include ideas for improvements in the form of a ‘suggestion box’ or ‘improvement ideas’?

As noted on the “Ask IPC” page, the range of questions is specific to Indiana Packers’ recent acquisition of Specialty Foods Group (SFG). All questions – as soon as submitted – are routed to Mark Berry (VP, People at IPC). Based on the nature of the question, they are answered by the leader best suited to respond.

At this point, our focus is on providing timely, accurate responses to team member questions or concerns specific to the acquisition of SFG. In the future, we may consider leveraging this type of technology to encourage team members to share ideas for improvement. Until we complete the integration process, this site will be specifically focused on integration-related questions.

Mark Berry, VP, People (HR, Safety, & Health Services)

What happens with my benefits?

This is – probably – the most common question we expected to receive.  We’re glad you asked.  The response below is specific to SFG & IPC team members not represented by a collective bargaining agreement.  Team members – in Owensboro – represented by UFCW will continue with the benefits that were negotiated previously.

Through the end of this calendar year (December 31), there will be no change to your medical, dental, vision, or other elected benefits.  There were two reasons for this: 1) We were not able – pre-close – to do the work required to “harmonize” benefits between the two companies and 2) changes in benefits during the course of the year have some negative impacts for team members (new balances that must be met on co-pays & out of pocket maximums for example).  We didn’t want that to happen!  FYI – If you’ve not heard the word “harmonize” before at least in terms of benefits, you’ll hear it a great deal over the next several months, as we seek to bring the benefit programs of SFG & IPC together (or “harmonize” them).

Over the course of the next 4-6 weeks, we – IPC & SFG HR team members – will be working with Mercer (a leading global HR consulting firm) to finalize what we will be offering in 2019 (beginning in January).  Our objective?  To provide the most competitive plans we are able at a cost that is sustainable for both our team members & company.  To complete this part of the integration work, it will require both SFG & IPC team members to participate in an annual “enrollment” (much like what has already been done – in August – with SFG and is scheduled to be done with IPC in November), where eligible team members will be able to elect medical, dental, vision, life, and other coverage.  What will be the same?  Our medical plan provider, for sure; both companies currently provide coverage through United Health Care.  What will be different?  At this point, we can’t say – because the work of defining our new benefits has not been completed.

Our commitment: to provide our team members with answers to these questions prior to the annual enrollment (which is tentatively scheduled to take place in mid-November) and to provide service & cost competitive benefits to those who will take part in this transition process.

If you have additional questions, please feel free to post (so we can share the answers with others)!

Mark Berry, VP, People (HR, Safety, & Health Services)