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Hershey's Move To Mexico
Philly.com ^ | June 9, 2007 | By Steve Chawkins / Los Angeles Times

Posted on 06/09/2007 8:15:48 PM PDT by JACKRUSSELL

Edited on 06/10/2007 7:30:25 AM PDT by Sidebar Moderator. [history]

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.


(Excerpt) Read more at philly.com ...


TOPICS: Mexico; News/Current Events; US: California
KEYWORDS: chocolate; foodsafety; globalization; hershey; manufacturing; mexico
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To: Disambiguator

I was afraid to click and check out the prices. I’ve heard some good things about Trader Joe’s, but have never been to one.


61 posted on 06/09/2007 9:20:47 PM PDT by TheSpottedOwl (Head Caterer for the FIRM)
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To: Plains Drifter

....as much as I hate some of the politics in Calif...it still had a GSP of 1.5 Trillion dollars compared to NY and Texas with 899 Billion and 860 Billion respectively in 2006. That is just about twice as much as 2nd and 3rd place. Companies come and go.....but the economic demise that I hear on FR every year is always greatly exaggerated. Calif is still 15% or so of the entire GDP of the U.S. I believe......


62 posted on 06/09/2007 9:22:48 PM PDT by NorCalRepub
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To: Bernard Marx
Why are all these companies leaving the Golden State? Not golden anymore?

They're going where they're welcomed and not taxed into near-bankruptcy to support illegals and socialist welfare programs.

Ding!Ding!Ding! We have a winnah!

63 posted on 06/09/2007 9:23:14 PM PDT by BradyLS (DO NOT FEED THE BEARS!)
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To: JACKRUSSELL

Milton Hershey is rolling over in his grave. Will Hershey PA be renamed? Maybe if we cross the Rio Grande going south, we can get a job at the new plant....... as illegal gringo immigrants.


64 posted on 06/09/2007 9:24:34 PM PDT by Doctor Don
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To: NorCalRepub

Then why is your state operating in the red if it’s doing so good?


65 posted on 06/09/2007 9:26:47 PM PDT by Plains Drifter (I don't suffer from insanity, I enjoy it!!!)
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To: BradyLS

....see post # 62.... companies may leave but many take their place too.....like I said, I hate the Dem politics here but Calif. economic power still dwarfs NY and Texas which are #2 and #3


66 posted on 06/09/2007 9:26:57 PM PDT by NorCalRepub
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To: Plains Drifter

...same damn reason the U.S. is operating in the red.... too much damned spending by liberals and RINO’s...


67 posted on 06/09/2007 9:28:03 PM PDT by NorCalRepub
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To: JACKRUSSELL

Oh well, no more Hershey’s products in my house.


68 posted on 06/09/2007 9:28:39 PM PDT by Boiling point (The Indians had a bad immigration policy and look what happened to them!)
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To: Plains Drifter

No problem in San Diego.
Many of the major Defense contractors are receiving mega million contracts almost weekly.

Also home to Qualcomm, the top international wireless Corp.
Sony, and many other larg corps.

In the top 3 in the U.S. for BioTec and the list could go on. What left was a drop in the bucket, no loss.


69 posted on 06/09/2007 9:36:31 PM PDT by SoCalPol (Duncan Hunter '08 Tough on WOT & Illegals)
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To: kaboom
As for some other posts, the company will save about 10% in labor costs plus they will avoid some of the US restrictions on sugar which artificially inflate their costs.

Not to mention those pesky inspections...

70 posted on 06/09/2007 9:40:18 PM PDT by InMemoriam
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To: Unknowing

I believe production of Life Savers (those fruit flavored, hard candy rings, remember?) was moved to Canada several years ago because the price of sugar is controlled in the U.S. at an artificially high level.
The land of free market supply and demand, don’t ya know?!


71 posted on 06/09/2007 9:43:04 PM PDT by Elsiejay
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To: JACKRUSSELL
"Asked about the negative publicity that would come with the plant closures, he said the decisions were "gut-wrenchingly difficult - but in the best interests of the business."

If you thought that was difficult, wait until you see your sales figures after people learn you're moving your business to Mexico. I have a feeling many, many American customers will be going "Hello, Nestle!".
72 posted on 06/09/2007 9:46:09 PM PDT by DesScorp
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To: television is just wrong

I’ll be ok as long as I can rely on Whitman’s. :-)


73 posted on 06/09/2007 9:47:44 PM PDT by processing please hold (Duncan Hunter '08) (ROP and Open Borders-a terrorist marriage and hell's coming with them)
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To: processing please hold
"I’m sure gonna miss my Hershey’s with Almonds."

Pretty much. The thing to do here is to not buy Hershey products now. If Hershey's had told America "we're raising our prices, but we're staying right here and making the best chocolate anywhere", people would have ponied up the money. Now they're just gonna buy elsewhere.
74 posted on 06/09/2007 9:47:46 PM PDT by DesScorp
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To: DesScorp
As soon as I read the article I decided to not buy from them again.

I will have Hershey with Almonds withdrawals for a while. :(

75 posted on 06/09/2007 9:50:08 PM PDT by processing please hold (Duncan Hunter '08) (ROP and Open Borders-a terrorist marriage and hell's coming with them)
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To: JACKRUSSELL
“labor costs in Mexico are 10 percent less than in the United States”

A difference that could probably be made up if not for UNIONS. If is possible that Hershey workers are paid FAR more than what a job making and packing candy is worth?

My home is just outside of Harrisburg, just a few miles from Hershey. Regularly there is stuff in the papers about the UNION threatening a strike.

I bet if they dropped the union, opened the shop to anyone who wanted to work, Hershey could remain in the U.S. These workers are not assembling aircraft or dismantling old nukes. They are making and boxing CANDY.

Where is the need for a union here? So I blame the unions.. again. Ten years ago union workers at Caterpillar in York, PA (just south of Harrisburg) making excellent wages, went on strike. Cat warned them but they went on strike.

Cat closed the plant. Brilliant move union workers (making as much folks with MBA’s). It must be something in the water in this area. Union workers succeeded in closing two major plants.

A few months ago the Harley union nearly got the plant in York closed. Among others, broom pushers and box painters making $20+++/hr +great benefits threatened a strike. Bright move.

Unions,,,, making the work place safe for unions.

Great job.

76 posted on 06/09/2007 9:50:45 PM PDT by JSteff
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To: processing please hold

I’ll rememmber that.


77 posted on 06/09/2007 9:55:06 PM PDT by television is just wrong (Amnesty is when you allow them to return to their country of origin without prosecution.)
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To: Calpernia
“Hershey’s wants some oompa loompas.”

No, I think the Hershey Union workers want aerospace technician, or critical care medical professional pay for making and boxing candy.

Let’s be realistic about why... if at all... Hershey workers need a union. This is not a major high tech assembly job or a life saving professionals career. It is a JOB making candy. That’s it, making candy.

Blame the unions.

78 posted on 06/09/2007 9:59:15 PM PDT by JSteff
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To: Elsiejay

same with dairy. A friend is a dairy farmer and the government PAYS him to dump tons of it so that they can inflate the cost of milk. He hates it but has no choice.


79 posted on 06/09/2007 10:01:17 PM PDT by annelizly
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Blame the Baby Boomers.

They are now retiring and shifting their financial investment strategy to short term high growth stocks. For any public company to stay afloat they are driven to reduce operating costs by drastic means just to stay afloat and keep their stock prices from falling into the basement.

A good solid company that makes a profit every year and has tremendous long range longevity in the market can have a worthless stock if they are not demonstrating GROWTH.

Thanks for not only ruining the greatest country on earth handed to you on a golden platter and fed to you on a silver spoon BABY_BOOMERS, but thanks for sucking it dry like a parasite killing its host as it dies.


80 posted on 06/09/2007 10:06:15 PM PDT by RC51
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