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Panel approves Drink Pack contract but imposes 15% turnover trigger and quarterly check‑ins
Summary
After extensive questioning about a 31% 2024 turnover rate, the panel approved Drink Pack LLC’s ETP contract and added a requirement that turnover be 15% or lower in the final 12 months of the contract or face a 25% funding reduction, plus quarterly monitoring.
The panel approved funding for Drink Pack LLC on July 18 after extended scrutiny from members concerned about the company's prior turnover history.
Drink Pack representatives told the panel their 2024 turnover rate rose to about 31% after a delayed Texas facility and a period of rapid growth; company witnesses said the figure reflected a one‑time right‑sizing event and that turnover has since trended down to 6.2% in 2025. Panel members pressed for assurances the training would primarily benefit California workers and not be redirected to out‑of‑state openings.
Panel member Gretchen Newsom and others recommended a trigger mechanism to protect public funds. The adopted motion (moved by Newsom) approved Drink Pack's contract in the amount recorded on the motion ($200,680) and required that Drink Pack maintain a turnover rate of 15% or lower within the last 12 months of the contract; failure to meet that threshold triggers a 25% reduction in funding. The panel also requested quarterly check‑ins so staff can monitor turnover trends during the contract period.
Drink Pack said the project will focus primarily on upskilling incumbent workers (approximately 80% incumbent, 20% new hires), will pay employees for training hours that fall on off‑days when necessary, and plans multi‑tiered onboarding and 30/60/90-day check‑ins to support retention. Panel members said these measures, combined with the trigger and monitoring, gave them the assurances needed to approve the contract.
