Posted on 04/24/2007 8:21:11 AM PDT by Wolfie
Hershey to Close Reading, Pa., Plant
The Hershey Co., the nation's leading candy maker, said Monday that it will shut down a plant in Reading as part of a wider move to cut labor and materials costs.
The closing, which will affect about 260 unionized employees, is the company's second plant-closing announcement in a little over two months.
"Our network operates at less than half of capacity (over seven days) and we must make significant changes to remain competitive," Hershey (nyse: HSY - news - people ) spokesman Kirk Saville said.
Saville said the company would work out severance agreements with the workers and close the plant in 2008. Hershey is looking to shift more manufacturing to India, China, Mexico and contractors in the United States, and has already announced it will cut up to 900 of the 3,000 workers from three plants in its hometown.
Hershey originally purchased the Reading plant from the Dietrich Corp. in 1987 and brought aboard the Luden's cough drop brand and the Fifth Avenue chocolate bar.
The plant also makes York Peppermint Patties, Reese's crispy crunch bars and Jolly Ranchers. The plant is about 40 miles east of the company headquarters in the town named for the chocolate magnate, Milton S. Hershey.
Given they are moving more stuff to China I doubt Unions are the real reason..
Because it's a rotten candy bar ---has little sales.
Along with jobs, Job security left America years ago.
If it can be outsourced it will be, if they can bring in low wage labor to replace you they will.
If it can be outsourced it will be, if they can bring in low wage labor to replace you they will.
The only nation in which WalMart is unionized is *china* and I can guarantee you Hershey will end up unionized there. This is all about paying someone 2.50 a day rather than 20$ an hour whether or not that person is in a union.
Exactly. This is not complicated.
You really think those folks were making 35 an hour with benefits?
You need to refresh your data. The labor rate in China is $0.85 per hour and India is $1.25 per hour.
It’s not all Union’s fault, but early on Democrats stacked the legal deck in favor of unions. In turn, the balance of power was handed to Unions and they then proceeded to rape businesses for decades. This was all well and good until foreign investment became and option and businesses sought refuge on foreign soil.
Look at the progression:
- Unions came into power after businesses tried to squash them.
- Democrats handed Unions big political and legal protection, thus shifting the natural dynamic balance between management and union.
- Unions began to demand and get more than they deserved in large measure because they now had significant political protection written into the law.
- Unions continued to obtain more in salary and benefit than their productivity.
- Businesses began to move south to escape Unions.
- Businesses then began to move offshore in an effort to altogether flee unfair Union demands and wages.
- Workers across the country are now paying the price for years of having Unions escalate salaries beyond sustainability.
No, of course not.
Well, there are people on these threads fed up with free traitors and people like you who blame it all on the evil American wordkers.
When the screw America for a buck crowd speaks about unions, they sound very similar to the liberals squealing about global warming. Both are equally dishonest.
I would also like to thank the teachers unions for keeping my property tax high.
When you get charged $1.25 for a cup of coffee, do you offer to pay $2.00?
What?
Great question. Had no problem finding them in KY, but we’ve lived in CA or NC for the last 10 years and we can’t find Zagnuts anywhere. Cracker Barrel has something similar, but it’s just not the same.
Well, if the gov’t stopped putting tariffs on sugar, maybe the candy industry would not have to move out of the country.
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