Hershey Meets Job-Cut Goals in Midstate

By Tom Dochat, The Patriot-News, Harrisburg, Pa.

Nov. 9–The Hershey Co. said Thursday it has reached its goal of achieving 900 to 1,100 job cuts at its three Derry Twp. plants and its Twizzlers facility in Lancaster.

The cuts are part of the company’s overall plan to realign manufacturing operations and reduce its work force in the U.S. and Canada.

The candymaker plans to eliminate at least a third of its production lines in the U.S. and Canada and shift some manufacturing to a new plant in Monterrey, Mexico. About 3,000 jobs are being cut companywide.

Hershey spokesman Kirk Saville said the job cuts in Derry Twp. and Lancaster are being accomplished through “voluntary means,” either with early retirement packages or voluntary severance programs.

At the two unionized Derry Twp. plants, 518 workers decided to participate in the early retirement program, according to Dennis Bomberger, business manager for Chocolate Workers Local 464. About 60 more workers applied for the voluntary severance program that allows employees to receive two weeks of pay for every year of service, with a minimum payout of eight weeks and a maximum of 52 weeks, he said.

The number of workers applying for early retirement and severance has not been disclosed at the nonunion Lancaster plant and the Reese’s plant in Derry Twp.

To take early retirement, workers had to be at least 50 by the end of the year.

The 900 to 1,100 job cuts are to be completed by the end of 2009. Some workers have already taken their early retirement, but Saville would not say how many.

Hershey initially said it was looking to trim 600 to 650 jobs at the two union plants, 200 to 250 jobs at the Reese’s plant and up to 100 jobs in Lancaster.

Saville said the cuts will enable the company to reduce costs and ensure continued production of Hershey’s milk chocolate, Kisses and Reese’s peanut butter cups — as well as other products — in Hershey.

He added that when the manufacturing realignment is complete, about 90 percent of the products sold in the U.S. and Canada will be made in those countries.

—–

To see more of The Patriot-News, or to subscribe to the newspaper, go to http://www.patriot-news.com.

Copyright (c) 2007, The Patriot-News, Harrisburg, Pa.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

HSY,