Union workers at Pinnacle Foods in Fort Madison have rejected a new contract proposal by an overwhelming margin. Two-thirds of the members of UFCW Local 617 voted against the contract offer by the company. Initially, Pinnacle Foods threatened to take away pensions and increase health care costs for all of the 431 union members.

Then union members voted to strike before they'd let that happen. On January 18, 2013 the union and company reached a tentative agreement with the union that included a pension plan at a lower rate. Health care premiums would have risen sharply if union members approved the plan.

The union plans to keep negotiating with the company as long as the company is willing, a strike would be a last resort.