Published Date : Jun 24, 2016
It is expected that the recent tumultuous economic scenario across Europe will impact the confectionary industry. The industry players are focusing on streamlining their manufacturing processes while cutting down the operating costs. As a result, job cuts are increasing while workers are complaining about the poor working conditions across the manufacturing facilities.
Hershey-Owned Brookside Food’s Factory Closes Down
In Canada, the Hershey-owned Brookside Foods’ Abbotsford factory is shutting down by the end of October this year. This would lead to loss of about 180 jobs. In 2011, the Canadian confectionary firm was acquired by Hershey. The acquisition was a strategic move for Hershey to enter into the market for confectionary fillings-based on fruit juice. Brookside Foods had patented a process for manufacturing confectionary fillings. Hershey’s has stated that it will relocate 75% of Brookside’s manufacturing from the Abbotsford unit to the St. Hyacinthe plant, Quebec. The remaining production will resume at the Robinson plant in Illinois. The company has further mentioned that the decision has been taken after reviewing the manufacturing operations of the company.
Manufacturing Stalled at Nestlé’s Turkey Plant due to Union’s Strike
Following a dispute with the workers’ union at its Karacebey factory, Turkey, Nestlé is facing industrial action. The workers have called a strike regarding increased wages and better working conditions. Though production has been stalled at the plant, the confectionary giant has stated that it will not affect the supply of its products to the market. Since February this year, Nestlé and the union had been trying to reach a consensus regarding the workers’ demands. Union members have started an indefinite strike since June 21. The workers have complained of tough working conditions at the factory. The workers have blocked the entrance of the factory which produces wafers and tablet chocolates. However, Nestlé has stated that it has paid fairly to the workers, keeping in account of the market conditions.