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On Thursday, the Hershey Company announced they are building a new plant in Mexico and will be closing some US based plants and laying off about 1500 workers. On Friday that changed to possibly 3000 workers.

There has been no formal declaration that any of these will be here locally, but since the "original" plant on East Chocolate Avenue is very old, and the workers are unionized, the local speculation is that many of the layoffs will happen here. Hershey also operates two other plant in town, the Reese's plant on Rte 422 west of downtown and the so called "west" plant which is about a mile west of Reese's.

This area has not had a large scale employment cutback for many years, probably since Bethlehem Steel shuttered their plants in Lebanon and Steelton quite a few years ago. The area economy is mostly driven by government (both state and federal) and distribution (many firms have their northeast distribution centers here due to proximity to interstate highway access).

The manuvering to keep the original plant open will be interesting. The Hershey Trust (which controls the majority of Hershey stock) has a large stake in the local community so I'm sure they will have some input with the company.

 

5 Comments on Layoffs Come to Hershey?

FEB
17
2007
123,252 Points 6 Featured Posts Called Shot Master

That's sad news to hear. I remember all the hubub surrounding the Bethlehem Steel closings many years ago since they had plants in the Baltimore area as well. My uncle was one of the workers affected by that one. Fred, please keep us informed on how this plays out.

6:11am • #1
2 Featured Posts

Actually, since I posted this earlier today I found out this was the announcement made to the local workers yesterday:

There will be a reduction of about 3000 jobs in present facilities, but there will be about 1500 new jobs added (which will be in Monterray Mexico). Some of the cuts will be in a plant in Ontario where it was announced the plant will close within 2 years (the end of the present union contract). The present contract in Hershey has less than 3 years left. 

 

10:31am • #2
FEB
20
2007
Want to help?  Send a letter to CEO Richard Lenny or sign the petition at <a href="http://kissesforhershey.blogspot.com/">http://kissesforhershey.blogspot.com/</a>
Mike V
9:04pm • #3
FEB
26
2007
6 Featured Posts

It's a shame that so many companies feel as though they have to leave the country. 

I will be sad if they close this plant down.  After all, it is Chocolate town USA.

 

2:27pm • #4
MAY
14
2007

Until now, the Hershey milk chocolate bar USE TO BE my favorite candy. 

It will be difficult but if there comes a call for a boycott, count me in - I'm sticking with the union.

Doug - in Baltimore, MD
12:16pm • #5

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Fred Pickard Hershey, Pa

Hershey, PA

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Fred Pickard Innovations Realty Inc

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