Hershey to Close Reading, Pa., Plant

Forbes ^ | April 23, 2007

[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.

[Myrddin]

I buy New Balance shoes made in the USA and I ALWAYS will pay more for Made in the USA, voluntarily.

I buy New Balance because I need a 10 1/2 EE with no arch. Nobody else makes that kind of shoe. My shopping habits aren't driven by altruism or feigned patriotism. The best product at the most favorable price earns my business. If there isn't a competitor for the product, I pay what the market demands or do without.

[Myrddin]

Like the union painters at the Salem Nuclear Plant In Salem,N.J. who were ordered not to paint more than a coffee cup, of paint a day.

One of my high school buddies trained to be a welder. He was very good. When he hired on with a union shop, he was told that he wasn't allowed to weld more than 15 inches per hour. Union rules.

[mysterio]

They raised prices and are moving to China? Unbelievable.

[the OlLine Rebel]

Yup. Amazing how the unions hamstring the workers in more ways than 1. It’s the flip side of “unions bad for business”. Not all union workers are actually bad - some are made to be that way by their “bosses”.

[em2vn]

Unions make up less than ten percent of the nation workforce. How do they have a strangle hold on anything?
Maybe you should seek a job with the Boston Port Authority, it might ease that wealth redistribution idea your post suggests.

[Apple Blossom]

Ping.

[4yearlurker]

I worked on job sites back in the 1980’s,in New Jersey that had their share of global workers. To be quite honest,those Mexicans who drywalled and mudded worked their butts off.

[4yearlurker]

My brother-in-law started out as a food runner at Trumps Castle years ago. One day two union reps came to him and said: “We hear you do the job of two men. Slow it down!” A coworker actually complained that my BIL was working to hard! My BIL thinking that hard work would be noticed and rewarded forgot it was a union shop.

[Afronaut]

Buying and American product is feigned patriotism?

schlemiel

[Logic n' Reason]

You need to refresh your data. The labor rate in China is $0.85 per hour and India is $1.25 per hour.

I used a global average; the range (as you point out) is very wide.

[mysterio]

So, you’d say you’re making pretty close to the global average when it comes to carpenters?

[1rudeboy]

Thanks be to God that FR is filled with “experts” who can dictate pricing to major corporations! Where do we find such men? [sniff]

[Afronaut]

You post alot of crap.

[4yearlurker]

10% huh. If you say so.

I ain’t moving to Boston for anything.

What wealth redistribution??? Huh???

[dragonblustar]

That was funny... but sad too.

[Afronaut]

So do you.

[dragonblustar]

That was so bad... : )

[4yearlurker]

You read a lot of crap Mr. Union.

[1rudeboy]

So do I what?