Cadbury-Schweppes' Manic Outsourcing...

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Big Orange
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Cadbury-Schweppes' Manic Outsourcing...

Post by Big Orange »

Cadbury factories shed 700 jobs

Schweppes is to close its Keynsham factory, near Bristol, by 2010 with the loss of about 500 jobs.

It said a further 200 jobs would go at its Bournville plant, in Birmingham.
Staff in Keynsham were told during an emergency meeting early on Wednesday the phased closure would begin in 2009.

The Keynsham production will be moved to factories in Poland and Bournville as part of a wider cost reduction plan announced in June.
As part of the move the Bournville plant will receive a £40m investment.
Earlier this year, Cadbury Schweppes had said it would cut 7,500 jobs and close about 15% of its manufacturing sites.

Cadbury said its other two UK chocolate manufacturing sites, at Chirk in North Wales and Leominster in Herefordshire, would be "unaffected" by the plans.

'Productive site'

The phased closure of Keynsham is set to be completed in 2010.

One worker who heard the announcement said: "I live in Keynsham and this will have a huge impact. I depend on this (job) for my mortgage and the town's economy will suffer when it (the factory) closes.

"Mind you I have to take my hat off to them (Cadbury Schweppes) because we've been told we will get help to find another job."

The union Unite which represents workers at the Keynsham plant said selling the site would raise millions for Cadbury.

"Somerdale {Keynsham] is a profitable site, a productive plant and part of Bristol's heritage as well as our manufacturing history," said Brian Revell, Unite national organiser for food and agriculture condemning the company's behaviour.

'Very sad day'

"Now in a move which could realise millions in land value a key UK manufacturing
operation is to be exported to Poland.

"We were always told Keynsham was safe because there was no capacity to make its products elsewhere," he added.

"It seems the truth is that means no capacity in the UK but plenty in Poland." "We will support our members in fighting this decision," he added.

Show gratitude

The Conservative councillor for Keynsham, on Bath and North East Somerset Council Charles Gerrish said: "This is a shock, a bolt from the blue and very disappointing. We thought the factory was secure. It's a very, very sad day."

In 2003, 170 jobs were cut from the Keynsham factory. At the same time a two-year programme to install new technology and increase efficiency was announced. "News of the factory's closure is a hard and heavy blow, not just to the workforce, but to the Keynsham community as a whole," said the Labour MP for Wansdyke, Dan Norris.

"I have held a series of meetings and discussions with senior Cadbury Schweppes directors over the summer where I have been arguing that any closure should be implemented over years rather than months.

"I shall be meeting Cadbury again today [Wednesday] following my last meeting with directors yesterday evening and will urge the company directors to show their gratitude to the people of Keynsham by spending heavily on projects to benefit the local community before they leave us, and I hope, for a long time after.

"Given the hard work and dedication of the [Keynsham] workforce over four generations, it is frankly, the very least Cadbury can do."


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Well that sucks for the British economy in the long term, after over a quarter century of UK corporations enacting a policy of self-imposed dismemberment and plundering of a increasing number of it's home assets to be shipped abroad for the sake of cutting a few corners and making short term profit at the expense of long term planning and economic stability, let alone at the obvious expense of many employees.

And it's not just manufacturing being outsourced to other countries; what about the current fiasco with the superfluous Indian call centres?
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Admiral Valdemar
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Post by Admiral Valdemar »

The economy is facing a situation not seen since Black Tuesday. Companies need to cut costs. Employees are the most draining part of a company's profits. The maths is simple.
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Invictus ChiKen
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Post by Invictus ChiKen »

I just keep wondering what big business is going to do when everyone is too poor to buy there products...
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Androsphinx
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Post by Androsphinx »

Invictus ChiKen wrote:I just keep wondering what big business is going to do when everyone is too poor to buy there products...
These ones sell sweets and soft drinks. They'll be around for a while in some form or other.
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Post by Darth Tanner »

These ones sell sweets and soft drinks
I'd imagine they'd be among the first sectors to feel the pinch of a depression. Their pretty much the definition of a luxury good.


what about the current fiasco with the superfluous Indian call centres
Which are now starting to be brought back as some have realised call centres don't really work when your staff have a really strong foreign accent that makes it difficult to understand them. I think however its a pretty sad state of affairs when having your call centres in your own country is an actual marketing tool.

On the plus side call centres having Indian accents does make it quicker to identify them when they call you so that you can hang up.
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Androsphinx
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Post by Androsphinx »

Darth Tanner wrote:
These ones sell sweets and soft drinks
I'd imagine they'd be among the first sectors to feel the pinch of a depression. Their pretty much the definition of a luxury good.
Not really. Luxury goods are things for which demand increases disproportionately as income increases. If anything, rich people are less likely to eat "junk food" - just compare what's sold at M&S and Tesco.
"what huge and loathsome abnormality was the Sphinx originally carven to represent? Accursed is the sight, be it in dream or not, that revealed to me the supreme horror - the Unknown God of the Dead, which licks its colossal chops in the unsuspected abyss, fed hideous morsels by soulless absurdities that should not exist" - Harry Houdini "Under the Pyramids"

"The goal of science is to substitute facts for appearances and demonstrations for impressions" - John Ruskin, "Stones of Venice"
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Post by Big Orange »

Admiral Valdemar wrote:The economy is facing a situation not seen since Black Tuesday. Companies need to cut costs. Employees are the most draining part of a company's profits. The maths is simple.
Yes, cheaper goods for consumers and the sharholders are happy in the short term, but employees are essentially the company in the traditional sense, and companies are also outsourcing manufacturing to poorer countries mainly so that they won't have to deal with humanitarian and enviromental considerations there. Outsourcing decrepit and outmoded British industries run by corrupted unions in the 1980s perhaps had to be done (even though they could've simply been re-organized and updated), however when most major companies have gone round to outsourcing as much of their assets as possible, threatening administrative and service efficiency (with Indian call centres being the most infamous example), getting rid of most kinds of proper employment, then we're collectively in trouble.

Here in this video we have the US Government carrying out silly military-industrial outsourcing to potentially hostile nations, under the far sighted guidance of the Wonder Chimp, when America's rapidly shrinking manufacturing base would've been sufficient and benefit from not outsourcing important military contracts. Have they handed over much of their economy to China which is going to fuck them in the next fifty years or less? I can imagine China, Korea, Japan, India, and parts of the ME replacing America as real economies in the near future.

And it's a darn cheek that Cadbury-Schweppes are going to take load of UK jobs and sending them over to Eastern Europe, when the unscrupulous private sector is taking advantage of the mini-flood of Eastern Europeans immigrant workers in Britain at the expense of other older immigrant communities and native Brits (Britain as a country is morbidly obese in terms of urban population density already, with rapidly vanishing employment opportunities, despite claims of high current employment).
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