Frito Lay

[JAZZGASM]

This change was made here in Utah 2 years ago(piloted in Phoenix area the year prior), as CEO Indra Nooyi took an 18% pay raise for a compensation package $26M/yr the majority of route sales reps took 10-20k pay cut. But hey, who cares about the frontline that is actually the backbone of the business.

Being a vendor is a ****ing joke anymore. The compensation used to be worth the ****ty schedule(working every holiday, starting at 2:00-3:00 am typically, 12-14 hour days, etc..) but I'm warming up more and more to union representation after souring when I was at Hostess(company and union were equally at fault for that debacle).


https://nyp.st/2heOReN

I have a friend that works for Frito Lay in Utah. He talked to be about this a while ago. He told me what his base is under their system. He has also had a reduction, but not even close to $10k to $20k (he said about $5k, but it could vary as the targets change every month or something, it was a while ago he told me about this...)His salary was actually reasonable, considering you don't need a formal education to work there. He worked for them FT while going to college part-time, and now works mostly evenings and weekends merchandising after graduating and working a FT job in IT. It is still lucrative enough for him to stay there.

I understand being upset as an employee that a CEO is getting paid so much. Shareholders care about a company growing in value, and that is what the CEO is doing.

I guess the question is, are there any other jobs vendor type jobs that pay better in Utah? If so, switch jobs. If not, it sounds like Frito-Lay was adjusting to the market...

 

[RJF]

I have a friend that works for Frito Lay in Utah. He talked to be about this a while ago. He told me what his base is under their system. He has also had a reduction, but not even close to $10k to $20k (he said about $5k, but it could vary as the targets change every month or something, it was a while ago he told me about this...)His salary was actually reasonable, considering you don't need a formal education to work there. He worked for them FT while going to college part-time, and now works mostly evenings and weekends merchandising after graduating and working a FT job in IT. It is still lucrative enough for him to stay there.

I understand being upset as an employee that a CEO is getting paid so much. Shareholders care about a company growing in value, and that is what the CEO is doing.

I guess the question is, are there any other jobs vendor type jobs that pay better in Utah? If so, switch jobs. If not, it sounds like Frito-Lay was adjusting to the market...

Frito Lay transformed the industry. After their conversion from commission to their current pay structure, Mondelez(Nabisco) and Kelloggs(Keebler) followed suit. As of July, Kelloggs is abandoning direct store delivery. Vendor jobs were once well compensated, but now unless you're and IO or majority unionized, it's far less desirable.

When this change happened, PepsiCo stock went from high 80's per share to ~109 per share currently. Profits are up, executive compensation is up, yet the drivers(literally and figuratively) of the business are continually getting squeezed.

 

[JAZZGASM]

Frito Lay transformed the industry. After their conversion from commission to their current pay structure, Mondelez(Nabisco) and Kelloggs(Keebler) followed suit. As of July, Kelloggs is abandoning direct store delivery. Vendor jobs were once well compensated, but now unless you're and IO or majority unionized, it's far less desirable.

When this change happened, PepsiCo stock went from high 80's per share to ~109 per share currently. Profits are up, executive compensation is up, yet the drivers(literally and figuratively) of the business are continually getting squeezed.

I honestly can't blame Kellogg. As a business, if I can get my products in store more efficiently using warehouses instead of direct store delivery, that is what I'll do. Imagine the savings not having to pay a driver $16/hr or more to stock the shelves when a store employee can do it for $10/hr. Bottom line is more profits for Keebler, and lover overall costs to the stores. To me, that is just good business. We are going to see this more and more as companies strive to become more efficient. Warehouse jobs will go to robots, etc. to compete.

 

[RJF]

I honestly can't blame Kellogg. As a business, if I can get my products in store more efficiently using warehouses instead of direct store delivery, that is what I'll do. Imagine the savings not having to pay a driver $16/hr or more to stock the shelves when a store employee can do it for $10/hr. Bottom line is more profits for Keebler, and lover overall costs to the stores. To me, that is just good business. We are going to see this more and more as companies strive to become more efficient. Warehouse jobs will go to robots, etc. to compete.

I understand the cost savings for Kellogg's but they benefit more than the retailer. Quality of merchandising suffers greatly moving away from DSD. Those cost savings are not that great when that overhead moves to the stores botttom line. Those full-service credits are now a loss to the store where before they were a loss to the vendor. One store manager in this market told me he would have to hire 2 new employees to maintain Kellogg's products in his store. Those features will go to dsd now because it's free labor.

 

[Boris]

I honestly can't blame Kellogg. As a business, if I can get my products in store more efficiently using warehouses instead of direct store delivery, that is what I'll do. Imagine the savings not having to pay a driver $16/hr or more to stock the shelves when a store employee can do it for $10/hr. Bottom line is more profits for Keebler, and lover overall costs to the stores. To me, that is just good business. We are going to see this more and more as companies strive to become more efficient. Warehouse jobs will go to robots, etc. to compete.

Nook, what ya think all this google drive stuff is designed for? They ain't gone be no truck drivers no delivery drivers no post man no nothin anymore. Google gonna be delivering everything "safer, faster" in 5 years.

Your kids want a job you had better learn ta work on the robots that work on the robots. Ask [MENTION=40]Siro[/MENTION] he is smart he will tell you.

 

[franklin]

I understand the cost savings for Kellogg's but they benefit more than the retailer. Quality of merchandising suffers greatly moving away from DSD. Those cost savings are not that great when that overhead moves to the stores botttom line. Those full-service credits are now a loss to the store where before they were a loss to the vendor. One store manager in this market told me he would have to hire 2 new employees to maintain Kellogg's products in his store. Those features will go to dsd now because it's free labor.

This annoys me about modern capitalism. 2 examples. Chicken in a Biscuit crackers used to be great before Walmart came along and started getting specialty products from each company at a lower price, which came partly from decreased quality. Now they are dry and nasty, and I no longer buy them.

Carrabba's used to make some pretty tasty food. Then they got cheap. They used to pound their chicken breasts and stuff them with fontina and the sauce. Now they toss the cheese on top of a much drier breast. It sucks in comparison and is nothing worth going out for.

Why don't companies raise prices and stick by quality of product that people are willing to pay for?