Ask IPC
If you have questions about Indiana Packers’ recent acquisition of Specialty Foods Group, please refer to the list of frequently asked questions below or use the submission form to ask a new question.
Click on any question below to reveal its answer.
Benefits
Since it might not be doable for our location (Owensboro) to have a health clinic would IPC consider a partnership with the Healthpark, (affiliated with the hospital) so that employees may be able to join at a reduced rate. Also, would it be possible to have a walking path located on the property?
As I understand, Healthpark is – essentially – a health system-affiliated fitness center that also offers health screenings and support groups, as well as physical, occupational, and speech therapy. To make a determination with respect to any type of partnership, it would be critical to understand 1) what is being offered; 2) percentage of team members likely to use such services (and frequency of use); 3) benefits to the users and company; and 4) cost vs. value.
Regardless what we do with respect to an opportunity such as this, with increases in health care costs over the past 10 years, we need to make every effort to sharpen our focus on wellness initiatives that provide the best possible health outcomes for our team members. In many companies, as much as 80% of the costs of health care can be tied back to as few as 20% of covered individuals, with many of these health issues – such as heart disease, obesity, and diabetes, for example – truly “controllable” by the individual. As we look at our health care offerings for 2020, this will be an area of focus.
With respect to the question of a walking path on-site, I believe a far better – and safer – opportunity would be to look at “green spaces” already developed and in close proximity to the Owensboro facility. This would include English Park and Thompson-Berry Park, for example. Onsite walking paths would pose safety risks (due to vehicle traffic) and would not likely generate the usage required to make them economically viable.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
With these new insurance card we received in the mail today does this mean our insurance is going to change soon? I believe we need a meeting as to what this change is all about if our insurance is not changing then we should not get new cards. When I receive a new card that tells me a change has been made and I should be made aware of the change.
Simple answer – it depends. If you are employed in Owensboro and are a team member not represented by UFCW Local 227, you’ve already been made aware of your 2019 benefit options, participated in the annual enrollment process, and are preparing to enjoy some new & improved benefits. However, if you are represented by UFCW Local 227, your benefits have not changed. You are being issued a new card because it’s the beginning of a new calendar year – and that’s what we do for our team members.
Quite simply: New cards = new year. If you are a member of Local 227, it means nothing more than that. In your question, you indicated a need for a meeting. If you’d like to meet to discuss (or to discuss via phone), please call me directly. My office number is 765.564.7209.
Happy New Year!
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Does IPC plan on keeping the pension at SFG?
In attempting to address the question, I assume that the question is specifically about UFCW Local 227’s defined contribution plan. If that is the case, with the acquisition of SFG, we’ve committed to honor the terms of the current collective bargaining agreement, including continuation of benefits.
If I’ve not addressed your question, please feel free to contact me at mark.berry@inpac.com. I’d welcome the opportunity to discuss this further.
Mark Berry, Vice President, People (HR, Safety, and Health Services)
Is our pay going to increase? And since we are a new company, does everything get wiped like a fresh start?
Decisions with respect to pay are based on a number of factors – primarily driven by the availability of talent in a given area, the nature of the work being done, and the performance of the business. For our production, maintenance, and clerical hourly team members, we’ve conducted these types of reviews on an annual basis and are scheduled to do so again in the Spring of 2019. For our salaried team members, the reviews are conducted at regular intervals as well. In both cases, our intent is to ensure that we are competitive with respect to the jobs, markets, and industries in which we operate. This has enabled us to attract, engage, and retain talent & team members.
With respect to your question about “everything (getting) wiped like a fresh start”, I’m not sure how best to respond – because I don’t know what you are referencing. If you’d like to clarify, please submit in a new question. I’ll answer promptly. Thanks!
The above is not applicable to our UCFW Local 227 team members. Wages are set as per the collective bargaining agreement currently in place.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Does IPC plan on putting in an employee health clinic?
Thanks so much for the question. It gives me the opportunity to talk about a few things that should be important to us all.
An employee clinic is something that had been considered by SFG leadership well in advance of the acquisition. It is a benefit we implemented for all of the Delphi team members & family members covered under one of our medical insurance plans and one of the most popular benefits we offer as a company. We believe in doing what we can to help provide affordable access to health care for our families. Specifically in Delphi, it’s a “win/win” for both team members & our company as a whole.
The issue – in looking at locations smaller than Delphi – is the ability to do this & generate sufficient “traffic” in & out of the clinic to make it economically viable. Delphi – with approximately 2,000 team members in total – has been able to “fill” the existing clinic we opened several years ago. On any given month, well more than 90% of our available appointments are filled. At a smaller location – such as Holland, MI with approximately 130 team members or Frankfort, IN with approximately 80 team members – it would be impossible for such a benefit to be economically viable; the number of appointments required to cover the cost of a clinic can’t be generated. With respect to Owensboro, we simply haven’t had time to look at the viability of such an option.
What we are doing – that benefits all IPC (and SFG) team members & families who elect our benefits – is providing exceptionally good medical, dental, vision, 401(k), and other benefits. We’re also looking at how to introduce member “wellness” as part of our offering, truly focusing on improving the overall health of our team members and their families. Our immediate focus is on ensuring that we have a great benefits offering in place for the beginning of the new calendar year, with a range of options greater than what has been available in the recent past for SFG team members. Once completed, we’ll take time to look at other options – including improving team member & family access to health care.
Mark Berry, VP, People (HR, Safety, & Health Services)
I am over 65 years of age and plan to work a few more years in Owensboro. Can I begin drawing my Fields retirement and keep on working?
The short answer is “No”. A team member must be retired and/or terminate employment before they receive retirement benefits. Additionally if they want to retire and then be re-employed, those benefits would continue as noted below:
Section 1.2 g – Except as otherwise specifically provided in the Plan, no benefits shall be payable until the Member retires or otherwise terminates employment with all Employers.
Section 4.4 LATE RETIREMENT – A Member may remain in the employ of the Employer after his Normal Retirement Date, in which event no Monthly Retirement Income shall be paid until the Member’s Late Retirement Date. The Member upon his actual retirement on his Late Retirement Date, shall be entitled to receive a Monthly Retirement Income equal to an amount computed under Section 4.3, based upon Credited Service and Average Monthly Earnings to his Late Retirement Date; provided, however, in no event will a Member’s benefit at his Late Retirement Date be less than the benefit to which he would have been entitled at his Normal Retirement Date increased by twelve percent (12%) per annum compounded annually for each month that the Member’s Late Retirement Date follows the Member’s Normal Retirement Date.
Section 4.9 REEMPLOYMENT – If a retired Member returns to the employ of the Employer, payment of the Member’s Monthly Retirement Income shall continue and he shall resume his membership in the Plan in accordance with the provisions of Section 3.1. Upon the Member’s subsequent retirement, the Member’s Monthly Retirement Income shall be recomputed to reflect any increase in his Accrued Benefit based on any additional periods of employment. Any increase in the Accrued Benefit will then be adjusted pursuant to Section 4.4 or Section 4.5 to reflect his actual age at the subsequent retirement date.
Kevin Clark
Director of Human Resources
Does this have any effect on your Delphi employees? What benefits do the new Owensboro employees receive compared to their previous employer?
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 UFCW Local 227 (who will continue with the benefits negotiated previously).
Through the end of this calendar year (December 31), there will be no change to our (both IPC & SFG) 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 Group. What will be different? At this point, we can’t say – because the work of defining our new benefits has not been completed.
As of this past Monday, we’re all part of one company. Our intent is to have a great benefits program, not only for Delphi and Owensboro, but also Frankfort and Holland. Stay tuned for more information!
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)
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)
Integration Process
Does IPC plan to continue relations with our workers union in 2020 when our contract is up? If so, will we see big changes in a positive direction? As of right now, we have no retirement and are interested in better insurance. There’s a rumor that other IPC factories insurance coverage is 90-10. Is that true and will we (the union) be offered the same insurance and retirement on the upcoming contract?
I want to apologize for the delayed response to this question. Since close on October 1, we’ve been running hard. Let me address your questions.
On your first question, we intend to continue relations with UFCW Local 227 just as SFG had previously and honor the terms of the current collective bargaining agreement.
As for the potential differences between facilities or the outcome of negotiations, I’d first say that it’s not unusual for different locations to have different terms and conditions of employment – either because of different histories, starting points, or job markets between the locations, varying priorities at those locations, or prior trade-offs that may have occurred at one location and not the other. As for what the future might hold, there’s – unfortunately – no way to know. In our current economy & business climate, there are simply too many “unknowns” – how the economy will be in 18 months, how the plant will be performing in 18 months, or how negotiations turn out. Regardless, you can rest assured that IPC will always negotiate in good faith.
I’d welcome the opportunity to speak with you directly about this or other questions. It’s a privilege to be part of our newly-combined company.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Do we (in Owensboro) have access to view our paystubs online?
Unfortunately, at this time, that capability is not available. However, we are in the process of evaluating vendors with the capability to do just this – and much more. Quincy Street is preparing to implement such as a system in January 2019. Delphi and Frankfort are on schedule to do the same, beginning in April 2019.
Increasingly, team members are looking for HR to provide more robust self-service capabilities. This would include not only the ability to view pay statements, but also to check time off balances, update personal information, request time off, and a host of other capabilities. In addition, more robust platforms provide a means to communicate with team members as well as such complete tasks as enrolling in benefits. The platform we’re implementing at Quincy Street, Delphi, and Frankfort will allow users to do all of these things – and more.
We are in discussions to extend these capabilities to our team members in
Mark Berry, Vice President, People (HR, Safety, and Health Services)
When will Indiana Packers be putting money into our plant? I know that some of our stuff is old and needs updating.
For most companies, investments of capital (typically, machinery or other equipment) is driven by key business objectives. One week into the integration process, it’s simply too early to speculate about where investments need to be made and when those investments will be made. Right now, our focus is on delivering our commitments as a business for the current fiscal year and moving forward with the integration process. As we get further along, decisions about investments will be included as part of the annual planning & budgeting processes.
Mark Berry, VP, People (HR, Safety, & Health Services)
Will there be changes in management?
Short answer: We don’t know. Let me explain…
Given that we only “closed” on the acquisition earlier this week, it’s simply too early to tell. At this point, we’ve simply not had the opportunity to get to know the SFG leaders (or them to know us). For now, we’re not focused on “change”, but rather “learning” – about SFG’s business, customers, talent, team, and a host of other things and ensuring that we meet or exceed the needs of our customers.
Mark Berry, VP, People (HR, Safety, & Health Services)
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)
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)
Policies
Can we get our W-2 documents early online?
Unfortunately, not. There are two reasons: timing and accessibility. With respect to timing, 2018 tax statements (W-2 form) for Owensboro team members require a certain amount of processing time. This allows for the company to summarize year-end wages and deductions, transmitting this information to the payroll administrator (ADP). With respect to accessibility, Owensboro’s current HR technology will not allow team members to access these documents online. You should expect to receive them as you have in the past (attached to your pay advice/stub).
Good news? We’re looking to replace Owensboro’s existing payroll/time/attendance system with a more contemporary system that will allow team members to access such documents online (as well as viewing pay information, checking paid time-off balances, requesting time off, and a host of other functions). If all goes as planned, this will occur later in 2019.
Mark Berry, VP People (HR, Safety, & Health Services)
What are the current holidays observed by IPC? Will the current holidays observed by SFG change?
IPC’s current observed holidays are New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. In addition, there are two personal floating holidays and one public floating holiday (selected by the company).
It is – at this point – too early to tell. One of the projects we have underway is to look at this – as well as a number of other people-related policies. In the case of the holiday schedule, the key question is whether these should be the same or different across all facilities. Once that question is decided, we will be able to finalize and communicate. In terms of timing, our intent is to complete this work prior to the end of this calendar year – ideally, no later than mid-December.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Are we going to be able to buy product from the new plant (ie, Owensboro)? If so, when?
In short, I sure hope so!
Both Indiana Packers (under the Indiana Kitchen brand) and Specialty Foods Group (under several brands, including Kentucky Legend & Artisan Crafted) produce exceptional products – available locally through several of the larger national or regional retail supermarkets. As we grow, one of the challenges will be how we enable team members to buy our brands. Right now, if you are an Indiana Packers “legacy” team member, the easiest way to do this is to visit your local supermarket (I’ve purchased Kentucky Legend ham & turkey products from Payless in Lafayette). If you’re a SFG “legacy” team member, it may be more of a challenge, depending on the availability of Indiana Kitchen in the Owensboro area. In the future, we’ll be looking for ways to make this easier for team members to purchase our products.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
What is the probation timeline and are you going to have the same point system?
Great question! Thanks for asking. We don’t have – across the board – one standard with respect to new team member “probation” (I’m not a fan of the word). With respect to a “point system”, I’m assuming you are referring to an attendance program in your facility. If so, I don’t see us – as part of the integration process – making changes to these at a facility level. Given that each facility is different – in terms of size, customers, products, and a host of other factors – these types of issues are best addressed on a location-by-location basis.
The above is not applicable to our UCFW Local 227 team members. Issues such as this will be administered as they have in the past, working in concert with Local 227 leadership.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Current sales representative car policy has not changed since implemented in 2004. Will IPC review current policy, since cars and maintenance expenses have certainly increased significantly since 2004?
Yes. Thanks for making me aware of this!
Mark Berry, VP, People (HR, Safety, & Health Services)
Business
Will IPC change the name from SFG to something else?
At this point, it is too early to know. After closing on October 1, we have begun the integration process, seeking to bring together SFG and IPC into a single company. That work has been underway for little more than a month. There’s much to be decided as that work moves forward, including how we will go to market as a new company.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Does Indiana Packers Corporation sell pork outside Indiana?
Yes, Indiana Packers distributes its fresh pork and Indiana Kitchen® premium products to a broad customer base in retail and foodservice sectors across the country as well as more than 25 countries worldwide.
Including Specialty Foods Group, how many Indiana Packers Corporation pork processing plants are there?
Indiana Packers Corporation operates four processing plants in three states: Delphi (headquarters) and Frankfort, Indiana; Holland, Michigan; and now Owensboro, Kentucky.
Staffing & Personnel
Will IPC be looking at cutting overtime hours at the Owensboro plant? And cutting back on weekend work to allow for employees to have more family time and allow for preventive maintenance to be done?
Thanks so much for the question. Here are a few thoughts.
High overtime is generally due to one of a few issues: 1) more work than can be done without overtime; 2) less efficiency – due to equipment or product issues or team members with limited experience; 3) insufficient staffing; or 4) a combination of two or more of these. As a business, we want to have enough sales to optimize production at the plant and provide all team members with steady, predictable work hours. At the same time, we recognize that high overtime – especially when sustained for longer periods of time – isn’t productive or good for morale. Unfortunately, the seasonal nature of our businesses – whether at a processing facility such as Owensboro or a packing facility like Delphi – requires us to either work more overtime (with the team members we have) or hire more team members (knowing that we won’t have the work to maintain employment for some during the non-peak seasons – and will need to lay team members off) during this time of year. One way to – potentially – overcome this is to growth those product lines not affected by seasonal changes (or grow in areas where sales are higher in what are traditionally our slower months of the year).
Great question! Thanks so much for taking time to ask.
Mark Berry, VP, People (HR, Safety, & Health Services)
Is there any plans of expanding the plant and adding jobs or adding a new shift to the already existing plant?
Honestly, it’s too early to tell. What I can tell you is that we’re very excited about combining the two businesses. Doing so will allow us to provide product to a larger group of customers, provide opportunities to more of our team members, and provide greater value to our shareholders.
Thanks so much for taking the time to raise the question.
Mark Berry, Vice President, People (HR, Safety, & Health Services)
Can we have a QA supervisor on the floor with us instead of having to wait for them to come down?
This is an item that would be – in the short term – addressed with your team leader or immediate supervisor. How team member support is deployed will be decisions made at a local (facility) level and not likely issues addressed through the integration process. Please raise your concern with your leadership team member(s).
Mark Berry, Vice President, People (HR, Safety, & Health Services)