A Canadian Perspective on Hershey's Restructuring

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The Interpreter
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A Canadian Perspective on Hershey's Restructuring

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Hershey kiss-off hurts
Workers shocked by loss of 'good friend' turned foe
By EARL MCRAE

SMITHS FALLS -- Words. Words are all they have in the shock still resonating.

Kind words about an employer they say cared beyond its workers and into the community, and as they stand shivering before the temple that once blessed their todays and tomorrows, they refuse to give words to what must be in hearts of denial: Hershey -- from corporate angel to corporate satan.

Hershey, the chocolate maker they trusted, and like a crippling sucker-punch from a long-time friend, they didn't expect it, didn't see it coming. And now, in the hundreds, mostly middle-aged, their breath clouding before them, they listen to speaker after speaker who've come to rally their hopes of the great infidel changing its mind and promising more golden days ahead.

NOT A PAYCHEQUE

But words are not a paycheque, words are not a guarantee they will ever find work again.

Placards are being handed out and they have words, too, words such as Please Hershey, Please Don't and My Daddy Makes Good Chocolate, and other words are on the name tags pinned to their chests, symbols of their corporate loyalty: 18 Years. 28 Years. 33 Years. 37 Years. 42 Years. None saying what most of them fear: Armageddon.

Nor did the Hershey potentates at head office America use that word. It might scare. Hershey used corpgab. "Global supply chain transformation."

Translation? Sorry, but you're history.

"Global supply chain transformation" was Hershey's respect being so great for its 500 Canadian workers that it gave plant manager Rene Albert only a few hours' notice of its death sentence, Albert hurriedly gathering employees at 7 a.m. on Black Friday, Feb. 16, to inform them.

"Global supply chain transformation" was Hershey's respect being so great for the town that it didn't notify Mayor Dennis Staples of its intention until a day after he began getting phone calls from the media, who learned of it only on the company's website, and the corporate call to Staples was brief, blunt, and a voice message.

"Global supply chain transformation" is Hershey closing its profitable Smiths Falls plant (for which it pays almost half a million dollars a year in municipal tax) so that it can start a new plant in cheap-labour Mexico as part of a three-year restructuring it says will eliminate 1,500 jobs across the chain and result in savings by 2010 of up to $190 million.

"Global supply chain transformation" was Hershey initially using the words "high probability" that the Smiths Falls plant might be closed, leaving the mayor and workers with a ray of hope, only to days later announce the closing in favour of Mexico, suggesting a last-minute decision when, in fact, the process would have to have been in the works for a considerable time.

Shouting into the microphone is Harry Ghadban, area director for the Canadian Auto Workers Union whose Local 462 represents the workers: "This isn't only 500 jobs, this is up to 2,000 when you consider other benefactors such as suppliers. This is some $20 million in lost wages."

Mayor Staples: "This the most important day in our history. This is not over. It's just starting. The Hershey bottom line is making money. This plant's always made money. As a courtesy, Hershey should send a letter telling us what the heck is happening. I got a call saying the plant is closing. That's not how to do it. Let's have discussions. We'll tell them: You've made a mistake."

CORPORATE PROSPERITY

Barb Byers, vice-president, Canadian Labour Congress: "I bring you solidarity from the 3 million members of the CLC. We've recently lost 300,000 manufacturing jobs in this country. Peter MacKay and Condoleezza Rice are in Ottawa for the Security and Prosperity Partnership conference. Yes. The security and prosperity of corporations."

Roy Lightbody, area dairy farmer: "I ship them 1,000 litres of milk a day. Each day, 150,000 litres go into the plant. In Mexico, Hershey will see a very inferior product from what they get here. Our climate in Eastern Ontario is ideal for this. In Mexico, it's not."

Bill Buffam, 75, retired, started at the plant on day one: "I'm so distressed. It's like losing a good friend. I can't believe Hershey can just walk away from this monument and leave it as a problem for the community."

Boyd Pryce, president of Local 462, employee of 32 years: "When you think of the devastation to agriculture and tourism. About 500,000 people visit the plant every year. And they buy from our retail chocolate shop." (Some $3 million in gross sales).

The union and management have been in contract negotiations since November.

The old contract expired Jan. 31. The union has offered survival concessions. Despite the definitive, announced closure, management has agreed to continue talks. If the closing is a fait accompli, why?

PETITION FOR PREMIER

As the workers disperse, a community petition is being circulated. It will be sent to Premier Dalton McGuinty who phoned Staples expressing his concern. It's an election year.

The petition calls on the province to: (a) Persuade Hershey to reverse its decision; (b) Fund infrastructure projects in Smiths Falls so as to entice new industry; (c) Hasten the four-laning of Hwy. 7 and reconstruction of Hwy. 15; (d) Postpone closing the Rideau Regional Centre until it can replace the 800-job loss with the same number of public-sector jobs; (e) Create a fund equivalent to the Northern Ontario Heritage Fund to lure investment to Eastern Ontario.

Dennis Staples: "This community of 9,200 is looking at losing 1,300 jobs. That isn't a crisis? If the city of Ottawa was to suddenly lose 90,000 jobs, what do you think the response would be?"

Looking down upon Smiths Falls is another monument. The water tower. On its dome the huge painted words: Smiths Falls. Hershey. Chocolate Capital Of Ontario. Hershey, corporate angel, paid for the paint job. Will Hershey, corporate satan, pay for the re-painting?
http://ottsun.canoe.ca/News/OttawaAndRe ... 64158.html
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Post by weaver »

By all means, let's require employers to keep operating plants despite out-of-control and unrecoverable labor costs. I think a bunch of steelworkers in the Northern Panhandle would find that logical.
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Post by Hoosier Daddy »

The plant was profitable.

Next.

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Post by genlock »

Who says it was profitable?
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Re: A Canadian Perspective on Hershey's Restructuring

Post by Hoosier Daddy »

Read the article.
"Global supply chain transformation" is Hershey closing its profitable Smiths Falls plant (for which it pays almost half a million dollars a year in municipal tax) so that it can start a new plant in cheap-labour Mexico as part of a three-year restructuring it says will eliminate 1,500 jobs across the chain and result in savings by 2010 of up to $190 million.

Mayor Staples: This plant's always made money.
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Post by genlock »

Hardly an unbiased attribution.
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Post by Hoosier Daddy »

What source could I ever provide that counteracts your pro-corporate, anti-union bias?

Look ... just forget it.

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Post by The Interpreter »

[quote]By STEVE SNYDER
Staff Writer
Lebanon Daily News
Lebanon Daily News
HERSHEY — If Calvin Smith Jr. is going to lose his job, he’d like to know about it.

Smith and his fellow workers at The Hershey Co. already know the company plans to reduce its workforce by 1,500 jobs during the next three years and eliminate a third of its production lines. And when employees for a new plant to be built in Monterrey, Mexico, are factored in, the actual number of job losses at the company’s U.S. and Canadian plants could total 3,000.

But what Smith and his co-workers don’t know is when the ax will drop.

“Any human being with a soul has a fear of the unknown,â€
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Post by Big Media »

Hershey candy bars are on sale... 2 for $1.00 at Little General.
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