Pennexx Foods Inc. workers in Fort Madison, a majority of who are represented by the United Food and Commercial Workers Union (UFCW) Local 617, voted on February 14, to ratify a new four-year contract that preserves their pension plan and includes a wage increase of $1.60 to $1.80 over the term of the agreement. Earlier in January, Pinnacle Foods workers voted to authorize a strike to protest the company's plan to eliminate their pension plans. The new contract covers over 450 Pinnacle Foods workers in the Fort Madison plant, which manufactures canned food products, including Vienna sausages, Armour brand corned beef hash, beef stew and chili.

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.