The Labor-Related Reason Taco Bell Is About To Undergo A Sour Cream Shortage

UPDATE 7/28/23: A spokesperson for New Dairy Select Milk released an official statement concerning the Teamsters Local 662 strike on July 26.

Hot American Strike Summer continues, and it's about to hit Taco Bell. In an open letter to Taco Bell customers, Teamsters Local 662 labor union Secretary-Treasurer Tom Strickland warns of a possible upcoming shortage of sour cream in every Taco Bell east of the Rocky Mountains (that's about ¾ of the United States).

Employees at a De Pere, Wisconsin production facility for New Dairy Select Milk, a subsidiary of Borden Dairy (formerly Morning Glory), are currently on strike for a better health insurance plan. They're demanding a plan, according to Strickland, "that will provide cost savings for them, the company, and the customers." The healthcare plan that Borden Dairy is currently offering would enforce employees to pay higher premiums, increased deductibles, and additional out-of-pocket expenses versus the Teamster Union healthcare plan. The Local 662 strike is affecting union members at both New Dairy Select Milk and Leinenkugel's Brewing Company, owned by Molson Coors. The combined strike involves approximately 80 union members.

As of 2022, New Dairy Select Milk only produces sour cream, having shut down its fresh milk production in De Pere last year. However, the company doesn't only produce sour cream for Taco Bell. The strike could reach other brands, including Wendy's and Hello Fresh, for which the company also supplies its products. 

The strike began on July 10, 2023, and remains at an impasse. New Dairy Select Milk released a statement that they are "disappointed" in the employees' decision to strike and that they will "continue to provide [its] products and services to [its] customers."

In an official statement released by New Dairy Select Milk on July 26, the company claimed that it had "offered a very competitive, new contract that significantly increases key items above the most recent contract signed by the Teamsters, including above-market pay and enhanced health care benefits," adding that it has "asked the union and our employees to reconsider our proposal so we can finalize a contract and move forward together."

It's not the first strike that Borden Milk has seen by any stretch. A milk delivery strike all the way back in 1917 led to Borden agreeing to only employ union members going forward. Shortly after that contract expired, however, Borden was accused of intimidation and opposition to union membership, leading to a massive drop in membership in the Teamsters union. The union persisted and continues to negotiate contracts on behalf of members. Let's hope for a happy resolution soon, both for the sake of the workers, and our tacos.