Cadbury's originally a home grown Quaker inspired UK owned
chocolate maker taken over subsequently (following earlier mergers) by USA
based Kraft International now called Mondelez International is currently
involved in a strike by its workers in Ireland with a related strike in Chicago
USA both seeking to fend off restructuring and potential closures. An
indefinite strike by hundreds of workers at the Cadbury production plant in
Coolock, Dublin began this morning in a dispute over the outsourcing of jobs. Cadbury
plans to outsource 17 positions in its stores division as part of a Labour
Court recommendation, which was rejected by Unite and SIPTU. Both unions now
say they will strike until the company rescinds the decision to outsource. The
owner of Cadbury, Mondelez International, has said the strike action will
undermine its future viability as well as its operation in Rathmore, Co Kerry.
Mondelez International had revenue of 33.2 billion dollars
in 2014 and made profits of 2.18 billion in that year. It was formally known as Kraft and as Kraft
in 2012 it gave almost 2 million dollars to the US based "Coalition
Against The Costly Food Labeling Proposition" which was set up to oppose a
proposed law requiring GMO containing foods to be labelled as such in
California. In 2015 the US Commodity and
Futures Commission said Mondelez Global had made 5.4 million dollars through
alleged price fixing on the global wheat market. Alexia Howard,according to the Wall Street
Journal "a closely-followed food and beverage analyst at Bernstein"
forecast last year that Mondelez should
be able to increase its profit rate from 12 to 18%.
The media present the mechanisms of this shift in the share
of profits whether it be outsourcing to low wage areas or a refusal of wage
rises as some sort of inevitable natural law that workers have to accept in a
race to the bottom. The intention is to make workers in different countries
compete to accept wage cuts and worsening conditions.
In Chicago the Bakery, Confectionery, Tobacco Workers and
Grain Millers International Union characterized the company's proposal to
replace the current pension plan as an "extremely risky and unreliable
'savings account.'" On Dec. 21, the union filed a grievance alleging that
Mondelez has been filling jobs within the bargaining unit at the bakery with
contracted nonunion workers. "The (union) has maintained that these
actions by [Mondelez] are part of the plan to move production from Chicago to
Mexico while weakening the union's bargaining unit and bargaining power prior
to the move," according to the lawsuit. Mondelez projects it will save
about $46 million a year by installing four production lines at the Mexico
plant rather than making that investment at the Chicago plant.
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