Hershey closing last Canadian factory, laying off 580 worker

[Amelia]

Hershey closing last Canadian factory, laying off 580 workers

THE ASSOCIATED PRESS

05/14/2007

HALIFAX, Nova Scotia -- Hershey Co. is closing its last Canadian factory, laying off 580 workers and moving part of the production to the United States and Mexico.

Kirk Saville, a spokesman for Hershey, said Wednesday that the factory in Dartmouth, Nova Scotia, would close by December and that the company is negotiating severance packages for the workers.

The Hershey, Pa.-based company closed the chocolate factory because it is operating at one-third of its capacity, Saville said. He said the company has to come up with ways to reduce costs to "ensure the long-term competitiveness of the company."

Hershey announced a restructuring plan in February that would eliminate 1,500 jobs and one-third of its existing production lines over the next three years. It is shifting some work to contractors and a plant being built in Monterrey, Mexico, and it has formed joint ventures to begin making its products in China and India.

Hershey has already announced that it will close plants in Oakdale, Calif., Reading, Pa., Naugatuck, Conn., and Smiths Falls, Ontario, while cutting as many as 900 of the 3,000 workers at its three hometown plants in Hershey, Pa.

[Dr. Shane]

I was on the phone the other day with HP technical assistance and he told me he was in India. I asked him how much the average factory worker working in an American factory in India makes. He told me that the average worker in an American factory in India makes $700/month but that he makes more working for HP. I was amazed because the average factory worker working in an American factory in Mexico makes about $200/month.

[Gail]

Quote:

The Hershey, Pa.-based company closed the chocolate factory because it is operating at one-third of its capacity, Saville said. He said the company has to come up with ways to reduce costs to "ensure the long-term competitiveness of the company."

One way to improve the situation would be if Hershey would improve their chocolate...

[Dr. Shane]

They are already adding beef rennet. How much more tasty can they make it?