Frito-Lay was scheduled to renegotiate union contract in September Benaka said Frito-Lay made a last, best final offer to the union Wednesday that fell short of members' expectations. He cited inadequate pay raises, noted the company wanted to increase the union's contract term from three years to four and said Frito-Lay indicated it would yank retroactive raises if union members didn't agree to the most recent proposal. Frito-Lay was originally scheduled to renegotiate its contract with the union in September, so any raises agreed to now were expected to be retroactive through that month. In an emailed statement Thursday afternoon, Frito-Lay indicated it was committed to reaching an agreement.