Hershey's Move To Mexico

Philly.com ^ | June 9, 2007 | By Steve Chawkins / Los Angeles Times

[JACKRUSSELL]

OAKDALE, Calif. - On a warm May weekend in this Central Valley town, the irony was thick.

As usual, the annual Chocolate Festival was drawing hordes of fun-seekers. But Hershey Co., Oakdale's biggest employer and the nation's biggest candy company, is closing its plant here, eliminating all 575 jobs. The company will open a factory in Monterrey, Mexico, to handle the production.

[machogirl]

I remember about 8-10 years ago, walmart would run commercials letting us know about all the american companies that they were saving from closure, nice campaign, had displays all over stores with “buy american”, for whatever reason they did it, the end result was buy american and workers not losing their jobs

fast forward to today. everthing in walmart (almost everything) is made anywhere but the USA

and my local walmart (chandler, az) showcases products made in MEXICO NOW, the same products that are still made her in the US, example PONDS cream, they have a special line that is displayed prominently, with big letters on the jars, “MADE IN MEXICO”

DISGUSTING, CLINTON, BUSH are all leading our manufacturing made into destruction. i try to buy American, but sometimes it’s hard, we are just turning into a consumer nation, without the manufacturing capabilities that made us the leading economy and nation in the world; the envy of the world

what the heck went wrong? and when did it start?

[JSteff]

“Profits at what cost?”

What do you mean? The factory and the jobs would stay if the company could avoid moving. Moving a business costs lot’s of money.

So the questions should go as to what the costs are to stay. What is our country (including unionized workers) doing that is FORCING a business to look elsewhere?

Filling a wrapping machine with Hershey’s Kisses wrappers is hardly a high tech job. What are the workers trying to get paid for that?

[at bay]

Still, they may have vastly overestimated the american market for mexican candies.

[JSteff]

“I refuse to eat candy from anywhere that still has sewage running in the streets.”

You are in luck, I don’t think there are any food factories in Detroit.

[hawkboy]

I actually prefer the Mexican bottled Coca Cola (in the old style green tinted bottles) we can get here in AZ because they use real cane sugar as opposed to that godawful high fructose corn syrup. Tastes like Coca Cola used to taste when I was a kid.

What are the sugar restrictions you are refering to?

[JSteff]

“I think that we need to look into “off-shoring” our government... “

I think the Clinton admin already tried that.

[endthematrix]

"So what are you saying?"

Welcome to the New Economy!

"That our society needs to support a certain standard of living?"

What you're seeing unfortunately is the redistribution of wealth on global scale.

[cowdog77]

Hershey’s was once a good chocolate...now it’s mostly sugar with a lower cocoa content and doesn’t have the flavor it used to.

I’ve been buying other chocolate for some time now........cause I eat a ton of it and prefer the real deal.

[Paleo Conservative]

That's the real problem. I wouldn't buy it regardless of where it was made - it's just not very good chocolate. It might actually get better if it's made in Mexico.

Especially if they get rid of the corn syrup (fructose) and use real cane sugar (sucrose). Mexican Coca Cola is much better than American Coca Cola, because they use cane sugar in Mexico. The sugar quotas benefit a few wealthy sugar cane growers, corn farmers, sugar beet growers, and Archer Daniels Midland at the expense of American consumers both economically in terms of more expensive products and in health by increasing the proportion of corn syrup based sweeteners in products.

[JSteff]

“What you’re seeing unfortunately is the redistribution of wealth on global scale.”

And you are saying what? That businesses will spend more to move than to stay here even if it is cheaper to do business here?

Help me out in understanding your statement.

[MarkL]

I actually prefer the Mexican bottled Coca Cola (in the old style green tinted bottles) we can get here in AZ because they use real cane sugar as opposed to that godawful high fructose corn syrup. Tastes like Coca Cola used to taste when I was a kid.

The only time of year that the rest of the country can get a taste of that stuff is near Easter (actually the Jewish holiday of Passover), when corn syrup is a proscribed food ingredient. So Coca Cola does a very short production run of Coke with "sucrose" as the sweetener.

Mark

[FreedomOfExpression]

I think the Hershey Union workers want aerospace technician, or critical care medical professional pay for making and boxing candy.

Wow! They must be getting some high salaries in Mexico! A 10 percent difference in pay. The Mexican workers will be getting LVN or automotive technician pay for just making candy.

[endthematrix]

No. It’s my understanding that industry relocates to save money.

[Trajan88]

I visited Hershey, PA about 12 years ago in hopes of touring the plant, to actually see Hershey bars and/or Kisses being made... what I got was a ride on some stupid indoor "train" ride to see videos of chocolates being made w/ chocolate scent piped in to make it smell like one was actually in the plant. When the train ride was over, we were dropped off at that the gift shop... I high-tailed it out of Hershey, PA and continue to tell all I know what a farce the whole experience was.

Charlie and the Chocolate factory? NOT!

Too bad Mr. Hershey isn't around to fix things these days... I'm sure he's rolling in his grave at what his namesake's become.

[SoCalPol]

Truth to that.
Also Unions have killed off thousands of jobs for much of the same reason.

[SoCalPol]

The flip side to that argument,
A 1 bdrm apt. in San Diego rents for an ave. $1,100 a month on up.

A home starts around $600,000.
Condos in my neighborhood from $500,000 to over 4 million a unit on up.

$7.25 an hr. won’t cut it.

[JSteff]

But it is not reallocating to another country as the capitol and profits stay with and grow for the country who has elected to change so as to have lower operating costs.

The profits, in higher volume, flow in to the original company. Often at higher volume as the lower costs to sell the product enables it to be sold profitably in more markets. Again with those new sales/profits returning to the company.

So is it really “reallocating on a global scale” or would reallocation only be if the profits were now going to a new entity? Since it is staying with the company, and it’s share holders isn’t it more of a “diversification of operating resources” than a “reallocation on a global scale”

That sounds like the profits are now going somewhere else rather than to the company and it’s shareholders... who are probably mostly American and American Citizens.

[Halgr]

I am baffled that so many FReepers are such advocates of “Free Trade”...........NAFTA was a set up and we fell for it.

I fear that more bad things will come out of NAFTA

And NO ONE WILL DO ANYTHING ABOUT IT!!!!

[endthematrix]

I don’t think your rationale will translate to a factory worker who lost his job. It may to an investor, but that wasn’t the point. The concept of transferring production facilities abroad has multitude consequences for US supremacy. High-end sectors such as semiconductors and defense contracting affect national security. Even the machinist trades and other production skills will become less relevant.

I was speaking in relation to the globalist financial mechanisms specifically the World Bank, but in the areas of trade, the WTO and many Free Trade agreements will suffice. The world is becoming more interdependent at the expense of national sovereignty.

[napscoordinator]

I’m sure gonna miss my Hershey’s with Almonds.

There not going to stop making them. One factory is going down south. Probably have less Mexicans in Mexico than Oakland as far as the company is concerned.