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Hershey open to combination, Cadbury eyed: report

Sun Apr 1, 2007 2:31PM EDT

NEW YORK (Reuters) -

"The charitable trust that controls a majority of Hershey Co.'s voting rights has reversed its opposition to a possible merger, perhaps opening the way to a combination with Britain's Cadbury Schweppes, the Wall Street Journal said on Saturday.

In 2002, the trust pulled Hershey off the market in the wake of opposition from Pennsylvania officials and community groups who feared plant closures and job losses.

A sale could take place by late summer, people familiar with the matter also said, according to the newspaper."


Workers OK plan to slash Hershey jobs

Lebanon Daily News, PA - Mar 31, 2007

"Workers at The Hershey Company’s two union plants in Derry Township last night voted overwhelmingly to adopt a plan that will result in a work-force reduction of 600 to 650 jobs over the next three years."


Hershey selling out?

HERSHEY, Pa., Mar. 29 /preservehershey.org/  A previous management figure of 15 plus years in Hershey Foods indicated today that he believes the company is dispersing its work force as part of a plan to sell the company.   Recently when Wrigley's was interested in purchasing Hershey Foods the community caused such an uproar that the company backed down.  Now the plan appears to be to eliminate much of the local opposition by eliminating local workers.  This report is from a reliable management individual that left the company due to various concerns with the way the company does its business. 


Hershey going south

Publication: Patriot-News, The (Harrisburg, PA)
Author(s):  The Patriot-News  
Date: March 6, 2007
Page: A09

The phrases are globalization, developing a global footprint, and a number of other executive buzzwords from the boardrooms, but they all mean the same thing -- loss of more American jobs to Third World countries as Corporate America continually strives to be competitive in the marketplace.

The decisions are made by those whose salaries are measured in millions while the workers who have made those millions possible, and who struggle to remain financially afloat, are left to watch everything they've worked for all their lives slowly evaporate, as the job they once proudly held is taken from them and given to someone in China or Mexico, where people can work for a mere fraction of what they earn because the standard of living there is so poor.

I have always tried to buy products made in America, but nowadays, as everyone knows, it's becoming next to impossible because of the erosion of manufacturing as the economic base of our country. I can't buy a television, a computer or even a pair of shoes that is made in America, and now they want to send even my food to Mexico. I've eaten my last Hershey bar.

ROBERT SHELDON Carlisle

Copyright 2007 The Patriot-News Co.

 

Hershey residents plan rally

By: Jeff Werner

03/01/2007 

      Like many living in the shadow of the largest chocolate factory in the world, the 57-year resident is worried that plans by The Hershey Company to cut 1,500 or more jobs, trim production lines and build a new manufacturing plant south of the border in Mexico over the next three years will dramatically her town of Hershey.
      The Derry Township-based candy and snack food maker, known for such brands as Hershey's, Reese's and Hershey's Kisses, said it needs to make the changes in order to remain competitive in a constantly changing global marketplace.
      The problem, said Rippon-Prete is that the company isn't saying where the cuts will occur, adding to the uncertainty in town, both among employees and residents who worry that Hershey could follow in the footsteps of its Canadian sister city, Smith Falls, which will lose its Hershey plant and 500 jobs as part of the restructuring plan.
      Rippon-Prete said she's praying that won't happen here, where her grandfather, HB Reese, started his own candy factory and originated the peanut butter cup after learning the business from Milton Hershey.
      "It just makes me cry," says Rippon-Prete, thinking of what life would be like without the chocolate factory. "This town has meant so much to so many generations. Mr. Hershey gave people hope, not only through his Milton Hershey School, but to his workers."
      In response to the announcement, Rippon-Prete is organizing an informational rally for Saturday beginning at 10 a.m. inside the Hershey Italian Lodge, 128 Hillcrest Road.
      She has invited a panel of politicians and union representatives, including Dauphin County Commissioner George Hartwick, III, Derry Township Supervisor Mike Pries and Chocolate Workers Union 464 leaders Dennis Bomberger and Calvin Smith, to address the issues and to listen to what employees and residents have to say.
      "We won't be able to get answers on Saturday, but the questions are what the head table will take back with them," says Rippon-Prete. "Hershey is being very tight-lipped. It's up to our elected officials and the union to find out what the answers are".
      Rippon-Prete has also invited Canadian employees from the Smith Falls plant, Congressman Tim Holden and officials from The Hershey Company and the Hershey Trust to attend the rally.
      "I wanted to give the employees and the people of this town who care an opportunity to speak," said Rippon-Prete.
      "It's tearing at my heartstrings for the people who are going to lose jobs," she continued. "They closed Smith Falls. What are we going to do if we lose all of Hershey to Mexico? HERCO has a lot at stake as well. Those are lives. Those are jobs."
 

İHershey Chronicle 2007

 

Uncertainty hangs over Chocolate

By Jeff Werner

02/22/2007 

The sweet aroma of chocolate has been replaced by a cloud of uncertainty as workers at three plants here wonder whether their jobs are secure under a restructuring plan announced last week by The Hershey Company.

The Derry Township-based candy and snack food maker, known for such brands as Hershey's, Reese's and Hershey's Kisses, said in order to remain competitive, it intends to cut 1,500 jobs over the next three years, trim production lines and construct a new manufacturing plant in Mexico.
"The changing marketplace presents both challenges and exciting opportunities for our company," said Richard H. Lenny, chairman, president and CEO of the Hershey Company, in announcing the plan the day after Valentine's Day, a holiday known for its chocolate sales. "In order for Hershey to remain competitive, we are implementing a comprehensive strategic agenda focused on increasing our North American marketplace leadership and developing a truly global footprint for Hershey's iconic brands."
Under what the company calls a "Glo-bal Supply Chain Transformation," over the next three years Hershey will reduce its North American production lines by more than one-third and will cut at least 1,500 of its 13,000 workers, or about 11 percent of its workforce.
In addition, the company will construct a production facility in Monterrey, Mexico, "to add new low-cost capacity" and to "meet current and emerging marketplace needs" in that country.
Company officials said while some of its factories will be downsized or closed, others will be expanded as part of the plan. However, the specifics of those changes have not yet been released.
The company employs more than 2,500 workers at three plants in Derry Township, including 19 East Chocolate Avenue, the Reese's plant on Route 422 and the west plant on West Chocolate Avenue.
Dennis Bomberger, the business manager for Chocolate Workers Local No. 464, which represents 2400 workers at two plants in Derry and one in Reading, said the mood among the employees has been "pretty gloomy" since last week's announcement.
"We don't know what's going to happen," said Bomberger on Tuesday. "It's tough to be upbeat when you don't know what's going to happen. I'm optimistic that something can be negotiated or done to save as many jobs in the union plants as possible. What that is, I don't know at this moment in time. It's pretty tough to negotiate when you don't know which ones are affected."
Bomberger said it's also "disturbing" that Hershey is going to build a new manufacturing facility in Mexico. "We don't know how large it will be, but it sounds like it will be pretty big." There's event a chance, he said, that it could eclipse the East Chocolate plant as the largest chocolate plant in the world.
The company, which has been struggling with stiff competition and weak profits, said the restructuring is part of an overall strategy to remain competitive by repositioning itself in a global marketplace, enhancing its revenue stream through consolidation of its manufacturing facilities and outsourcing some low-value added items.
"When completed, the plan will greatly enhance the company's manufacturing, sourcing and customer service capabilities, and generate significant resources to invest in the company's growth initiatives," said a press statement issued by the company.
In addition, company officials said the strategy would result in a "flexible, global supply chain capable of delivering Hershey's iconic brands, in a wide range of affordable items and assortments, across retail channels in the company's priority markets"
"The long-term benefits will include a significant, sustainable increase in investment behind Hershey's iconic brands and new product innovation, as well as targeted, profitable international expansion," said chief operating officer David West.
Company officials estimate the plan would generate on-going savings of between $170 million and $190 million by the year 2010, with a portion of the savings earmarked for strategic growth initiatives.
"We recognize that this will involve considerable change over the next three years, and intend to make this transformation of our supply chain as smooth as possible for our employees and customers," said Lenny. "We will work closely with those affected by this program, to assist them with the transition."

İHershey Chronicle 2007


  [As other issues and meetings arise, we will post them here]

 


 

Archive of past issues and meetings:

 

The Concerned Citizens to Preserve Zoning  
Derry Township - 2006 

Welcome to the Concerned Citizens to Preserve Zoning. Our goal is to provide you with useful information about land use issues in the Township, and we hope you will share your ideas with us and others.

We are a group of Derry Township residents who are concerned about zoning and land use issues and are taking action to ensure the protection of land that is zoned for agriculture and conservation uses (commonly referred to as open space). The Derry Township Land Trust started this process with the goal of preservation of open space here in Hershey. Together, we are dedicated to:

(1) Protecting the integrity of the Township's Comprehensive Plan;
(2) Opposing efforts to rezone agricultural/conservation land; and
(3) Finally, acquiring land so that it may be protected from irresponsible development.

We do not oppose growth and expansion, but we do believe that land use decisions must benefit the people of this Township. After all, the Comprehensive Plan and zoning laws are here to protect us.

Concerned Citizens to Preserve Zoning organized to raise awareness among Derry Township residents about how today's decisions about rezoning and the Comprehensive Plan will affect the appearance, the feel, and the livability of our town in the future.  On this site, you will discover some of the issues facing our community, as well as our efforts to improve and preserve our current positive environment for all in the Township.

The following are issues and notices from past events and concerns.

Parkview parking plan draws ire

By: Lindsay Johnson

İHershey Chronicle 05/05/2006

      "Yes, HERCO owns Parkview and we can not force them to re-open this popular and historic golf course. No, HERCO is not allowed to do whatever they want on their land," Sandy Ballard, Hershey resident, said in a statement she read to the board.
      "All landowners, even powerful ones with expensive lobbyists and generous campaign contributions for elected officials, must obey the law and zoning rules when using their land."
      The company plans to use about 30 acres of the golf course, which was closed in November 2005, as a temporary parking lot for high-attendance days, such as when multiple events are happening at the Hersheypark Sports and Entertainment Complex and the park is open.
      In her statement, Ballard compared the 30 requested acres to 121 neighboring residents who own quarter-acre lots deciding to tear down their houses and pave the land.
      The golf course is currently zoned as Commercial Recreation, which does not include a parking lot as one of its uses and therefore requires the request of three zoning variances. Using the golf course for parking is a potential solution to HE&R losing the use of Whitefield, also known as the old airport strip, for overflow parking because of Milton Hershey School construction at Old Senior Hall. It was noted at the meeting that Whitefield is also zoned Commercial Recreation.
      The area within Parkview intended for parking is actually two lots, which require one of the three requested variances to combine. HE&R plans to accommodate about 3,000 cars on the combined lots.
      "I have a petition signed by 17 residents of this fine township urging the board to reject this proposal in its entirety," Roger Olson, township resident, said. "To desecrate this beautiful piece of real estate with its lovely hills, trees and streams is a very poor decision, if that decision is made. So we are urging the board to reject the petition. If the petition is rejected and HERCO doesn't know what to do with the golf course, perhaps they could consider giving it to the township to use as a park."
      Olson's signatures, combined with other signatures collected by Victor Peracchia and Ballard, added up to about 350 residents against Parkview's use as a parking lot.
      Historical value and environmental concerns were not the only woes shared by residents.
      "I work part-time at the museum, and I do know exactly how bad the traffic situation is. I would like to request that any parking you do on a permanent basis, that you would consider a permeable parking area and not blacktop. When we had Hurricane Ivan come through, we had a lot of flooding. There's a sewage plant there, and I have this picture of flooding and the sewage plant overflowing, and that's not a nice thought," Janette Murray, township resident, said.
      Representatives from HE&R presented the company's perspective, as well. Garrett Gallia, director of corporate relations, said the decision to use Parkview for this purpose was "not made easily or taken lightly" and that the company was "looking at every possible solution."
      In a statement released to the media at the hearing, HE&R said, "As the amount of land that we own in close proximity to our operations is in short supply, our options were very limited. Indeed, the only land suitable to replace the lost parking is located within the Parkview site.
      "We are evaluating our options for the future use of the balance of the Parkview property. While the decision to close Parkview was difficult because of its history, we firmly believe that the resulting use of the land will have wide-ranging benefits for our Company and the community."
      Charles M. Suhr, as legal counsel for HE&R, asked that the board make a decision on the requested variances that evening instead of giving themselves the standard 45 days allowed to render a decision. Roy Wells, chairman of the board, suggested that instead, the company should ask the board to "expedite its decision, which has been done in a two-week period before." The board agreed to grant that amended request.
      Under the company's request, the temporary variance, if awarded to them, would expire on Oct. 31, 2006. Jay Robertson, director of safety and security for HE&R, said that the company intends to submit a proposal for a permanent solution to the complex's parking strains before the temporary variance would expire.
      Gallia said that parking in Parkview, if approved, would cost the same as in the larger paved lot.
      The entire former golf course contains more than 130 acres.
      Parkview opened in 1929, one of the few landmarks that is still around from Milton Hershey's lifetime. The course was owned by the American Golf Company from 1994 to 2002, when it was reacquired by HE&R as part of the Country Club acquisition. HE&R owned the course prior to the ACG purchase, as well.

İHershey Chronicle 2006

 

What can I do? 

(1)  Talk to and email your friends and neighbors about these issues

By learning more about these issues and having a full discussion of them among residents, we can collectively decide the best future for our Township.

(2)  Write a letter or an email message

            Who:    Derry Township Supervisors 

235 Hockersville Road  Hershey, PA 17033

What:   A letter can be very simple, for example, stating that you support the effort to conserve land for conservation and open space in the township.

When:  As soon as possible, to ensure your voice will be heard on this important subject

Email:   manager@derrytownship.org (Attn: Township Supervisors)

(you can cc us on your email by sending a copy to preservehershey(no spam)@yahoo.com) 

(3) Attend Township Meetings

 Meetings are at the Derry Township Municipal Building.

(4) Support Land Preservation

 

Land trust effort dead

By: Lindsay Johnson

İHershey Chronicle 06/01/2006

      In 2004, organizers said that the Derry Township Land Trust was formed to acquire and preserve land in the township that is designated for conservation and agricultural uses.
      In an article published in the Chronicle on March 11, 2004, David McMillan, who served as chairman of the trust, said, "The focus of this organization is to be here long after the individuals have left and become a focus of activity of this nature in the township."
      McMillan, however, moved to Utah about 10 months ago.
      Developer Jack B. Billmyer, who was quoted by the Chronicle as the vice chairman, is also unsure of the status of the group and referred questions to McMillan, who in turn referred questions to Billmyer.
      Billmyer said, "We just kind-of threw something together quickly to get people interested. We put so much energy into the cause that we never made anything formal."
      When reached again, McMillan said, "I didn't formally hand anything over because there was nothing formal to hand over. I'm not sure what has happened to it now."
      A main focal point of the group's mission was to eventually purchase land zoned as agricultural or conservation that was in danger of being rezoned for other opposing uses.
      "There were lots of little groups defending their own fence posts. We were trying to unify them with the land trust," McMillan said.
      According to McMillan, an account remains with the funding the group received at its inception, $69.23 "from another group that had folded a few years before." An additional $15,000 of funding for the land trust had come from McMillan's personal and business accounts, he said. He said the trust spent most of the money on things such as a presentation to the board of supervisors, a cost efficiency analysis and a land development plan analysis.
      It is unclear what happened to those analyses as McMillan told the Chronicle to not call him again after giving a short interview.

İHershey Chronicle 2006

 

Open Space Referendum to appeared on the May 17, 2005 Primary Ballot

May 17th Primary Ballot Question (from the Township web site)

The Open Space Lands Acquisition And Preservation Act As Amended By Act 153 of 1996(32 P.S. 5001,et seq.)

Do you favor the imposition by the Township of Derry of an additional earned income tax at the rate of .1% (1/10 of 1%) to be used for financing the acquisition by the Township of Derry of open space, agriculture and conservation easements and such other purposes as set forth in the Open Space Lands Acquisition and Preservation Act?

Purpose
If approved, the ballot question would limit the use of the new tax revenue to the above purposes but no interests in real property could be acquired until designated for acquisition by the Township Board of Supervisors, followed by a public hearing on the proposed acquisition. An additional limitation is that the tax is imposed at the rate of .1% (1/10 of 1%), which is the equivalent to $1.00 per $1,000.00 of annual earned income of each resident of the Township of Derry. A further limitation is that the ordinance authorizing the ballot question limits the imposition of this additional .1% tax to finance debt up to five million ($5,000,000.00) dollars, at which time the tax would expire unless reauthorized by a subsequent referendum of the voters.
Approval of the ballot question would provide additional financial resources to the Township Supervisors to acquire the open space benefits discussed above, without resulting in a reduction in other Township services.

Limitation
To determine if the voters of the Township of Derry want the Township Supervisors to enact an additional earned income tax at the rate of .1%(1/10 of 1%).This tax will be used to finance the acquisition of open space benefits which could include, but are not limited to, protection and conservation of: water resources, watersheds, forest lands and farmland; park, recreation and conservation sites; natural or scenic resources and scenic areas; sites of historical, geologic or botanic interest; and open spaces between communities to promote sound, cohesive and efficient land development.

Effect
Approval of the ballot question would provide additional financial resources to the Township Supervisors to acquire the open space benefits discussed above, without resulting in a reduction in other Township services.

Background from David McMillan

Since 2000, the Township of Derry has seen increased pressure, due to development, on the remaining open spaces within our boundaries. The few remaining open spaces within the Hershey village area of the township, along 322 and 422 are slated for development during the next 10 years as the medical center and other infrastructure expands. Additionally, there is increasing pressure to build on the farm fields in the sand hills, and in other corners of the township. Open fields will disappear. Stream corridors will diminish. Opens spaces will vanish forever.   

We have managed to contain rampant development by many instances of isolated, and a few concerted, township-wide actions. It is apparent that the community of Derry wants growth, and wants continued improvement, but not at the cost of the life style that we have come to enjoy. This includes active and passive enjoyment of the many areas of green space within our community.   

With the proposed referendum (see more details at the Township web site) we have the opportunity to impact our community for a long time to come. The current supervisors have indicated their willingness to entertain the purchase and preservation of open space within the township, and for this I laud them. If we combine the funds generated from the proposed 0.1% earned income tax, with other potential sources of funding (e.g., Pennsylvania's Growing Greener funding), we have a real opportunity to make an impact on our community, an impact that will be lasting and that will affect not only us as we grow older in our community, but will also benefit our children, and their children. This conservation program will not stifle growth, rather it will promote growth based on sound planning principles, and it will preserve into perpetuity the valuable land resources in our township. I encourage you to vote on May 17th, and urge you to vote in favor of the land preservation tax.   Thank you,   Your fellow Derry Township resident  
David McMillan

 

 

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