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The Hershey Co.'s Reading operation is closing and 252 workers are losing their jobs
pennlive.com/ ^ | 02/20/09 | JOHN LUCIEW

Posted on 02/20/2009 3:02:43 PM PST by shielagolden

The Hershey Co.'s Reading operation is closing and 252 workers are losing their jobs A bitter taste

Reading never claimed to be the sweetest place on earth.

But since 1986, this self-appointed "home of the pretzel" has been the proud host of a Hershey Co. plant that cranked out somewhat glitzier snacks such as York Peppermint Patties, 5th Avenue and Zagnut candy bars and Jolly Rancher hard candies.

It all ends today. The last Peppermint Pattie line will come to a halt after the final swing shift, workers interviewed this week said.

Unlike with much of the grim economic news, the plant's 252 jobs are being lost not to the recession but rather a long-planned Hershey strategy to maximize profits by consolidating production at other U.S. and Canadian plants and at a new facility in Mexico. The strategy is costing about 800 jobs at Hershey's three plants in Derry Twp.

The few Reading workers willing to talk near the plant's gate said they appreciated Hershey's nearly two-year closing notice, as well as a company severance package they described as "fair."

But there's a lingering, bitter aftertaste at being replaced.

"That's 191/2 years I lost," said one 50-something worker who declined to give his name, fearing it could jeopardize his severance package. "I've got to start over. Hershey has been good to us. It's just a shame."

Hershey spokesman Kirk D. Saville declined to comment Thursday on the plant's operational details but said the company appreciates the workers' professionalism throughout a difficult period.

"This change was difficult for all of us but was necessary to ensure the long-term competitiveness of our company," he said. "We are grateful for their dedication, and we will continue to support our Reading employees through this transition."

A community reacts:

In the Reading community, there are signs of a backlash.

Some residents railed against the North American Free Trade Agreement, which they said encourages U.S. companies such as Hershey to export American jobs in order to import higher profits.

"It's good union jobs gone," said resident Anthony Capelli, 42, who said he attended middle school at the Milton S. Hershey School in Derry Twp., which is funded by the late company founder's endowment.

"Milton Hershey tried to help people," Capelli said. "His whole philosophy and his entire foundation was designed to help children."

Others vented at The Hershey Co., insisting their bitterness over the plant's closing would cause them to give up their favorite Hershey sweets in protest.

"Everyone says they aren't going to buy Hershey's no more," said Becky Ream, sales manager at North 8th St. Beer and Soda, across from the 400,000-square-foot plant.

Ream said she's sacrificing Peppermint Patties and her boss is swearing off Hershey's Kisses. But she conceded that their boycott would hurt Hershey far less than the plant closing will harm their business, which was supported by numerous plant workers.

"They'd stop for their beer and go home," Ream said. "I don't know how many, but a lot."

Saville declined to discuss the nature or volume of the public comments Hershey has received about the closing. He pointed out that after all of the planned supply changes, 90 percent of Hershey products consumed in the U.S. and Canada would still be made in this country.

Inside the plant:

Several workers said that inside the plant, most are resigned to their fate, which was announced in early 2007.

These days, they said, many of the plant's remaining workers are simply too exhausted picking up additional shifts to show much emotion.

A worker catching a last smoke before his second- shift job of mixing mint cream at 370 degrees said he's been logging seven-day workweeks as others call off on the weekends.

"It's coming to an end, and most of us are ready to leave," said the worker, 53. "Everybody just wants to get out."

While the final production line is to close down tonight, the workers said many of them will stay on to clean the plant and scour the candy-making machinery so it can be dismantled and shipped to Mexico, where the plant's Peppermint Patty line is being relocated. The task of mothballing the plant could last until March 20, the workers said.

What their futures hold beyond that remains a mystery to many of them.

The 53-year-old worker said he aims to head to South Carolina, where a brother owns five Burger King franchises. But a 40-year-old worker said he has no idea how he'll replace his $18-an-hour job at the plant.

"There is nothing out there right now," said the worker, who added that his wife recently lost her bank job.

Pat Murr, resources manager with CareerLink of Berks County, said displaced plant workers qualify for enhanced income support, retraining and tuition payments under the federal Trade Adjustment Act.

While she said Hershey gave the workers unusually long notice of the closing, it's too early to gauge how the workers will fare in launching second careers, especially in the midst of a recession.

"They've had time to plan and we have been working with them over the last year, but everyone goes through a process," she said.

Hulking factory remains:

The prospects for the plant -- a well-kept, six-story brick building in an otherwise depressed part of Reading -- are equally unclear.

The facility, which once housed the Luden's cough- drop factory, is listed for sale at $3.9 million. There's been little interest since the Reading School District backed off, area economic development officials said.

The plant is encircled by a new barbed-wire fence intended to ward off vandals once it's closed. The razor wire, along with a white- and-brown Hershey's flag flying at half-staff in honor of an employee who died of a heart attack at work last weekend, evoke an image of a siege.

But Jerusalem Amir, 36, and Peter Green, 49, who were temporary workers there as recently as fall, called it a utopia compared to other workplaces -- even at the daily wage of $9 an hour.

"I got along with everybody there," Amir said. "I liked my supervisors, and I loved working there. Closing it is all about greed."

Added Green: "I know some who went to work there right out of high school. People always did their jobs. Now they're just trying to get every last hour they can."


TOPICS: Crime/Corruption; Extended News; Foreign Affairs; Government; US: Pennsylvania
KEYWORDS: american; chocolate; free; hershey; layoffs; manufacturing; north; trade
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To: shielagolden

I hope most of them voted for demo-rats.

JoMa


21 posted on 02/20/2009 4:14:36 PM PST by joma89
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To: shielagolden

I have no issues with a company utilizing a foreign Country to reduce their costs as part of an integrated program to retain customers, profitability, and ensure the future of the company.

That said, I see foreign candy makers doing well here, whether or not they are located here or in their native lands.

I can only assume that Hershey’s feels that giving less value and charging more, while reducing costs is the best business model their executives can come up with.

I noticed the lowered volume of candy in their products last Halloween, and decided then that I would not be buying anymore of their overpriced goods. Now, I feel even better about that decision.

As an aside, the employees were awarded a very nice severance package, and had just over two years to prepare for this event. I wonder how many of the nearly three million currently unemployed had even a fraction of that time as notice?


22 posted on 02/20/2009 4:38:20 PM PST by papasmurf (Impeach the illegal bastard!)
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To: joma89
"I hope most of them voted for demo-rats."

Yes, Reading, the town where they shut the plant is a big democrat area.

The Hershey Chocolate Company and Hershey Entertainment and Resorts Co. (HERCO), however, are extremely conservative.
How do I know? I live here. I can see the west factory and I type this.
Kerry tried to rent out Hershey Park and they told him to take a hike.
They constantly support conservative candidates financially.
They are trying to keep as much manufacturing in the US as possible.

It has been a combination of things, several mentioned by posters, that have made them go elsewhere.

The two companies mentioned above report to the Hershey Trust Company that supports The Hershey School for disadvantaged youth.

Hershey is a wonderful company trying to make a profit but has to adjust to the world economy.

23 posted on 02/20/2009 4:41:10 PM PST by AGreatPer (Obama is not my president until we see his birth certificate. A real one.)
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To: shielagolden
More jobs outsourced. But at least Hershey's CEO won't have to take a pay cut during these difficult times. His five year salary is $25.6 million.

Outsource those jobs, Hershey! Divide up the booty among the executives!
24 posted on 02/20/2009 4:44:20 PM PST by mysterio
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To: shielagolden

Hersheys has not been Hersheys for several years. I forget who bought them out.


25 posted on 02/20/2009 5:26:49 PM PST by Rannug
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To: shielagolden

I went and stayed in a very fancy hotel in Hershey Pa. They had the BEST resturant there. The food was wonderful. There amusement park and zoo were wonderful. I really liked the place and if it is still open ya’ll should go. They also have a great golf coarse there for those who play. I do not. Very fun place. Hotel very expensive though.


26 posted on 02/20/2009 7:07:37 PM PST by therut
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