Heinz offers buyouts to all Pittsburgh workers

[Omaha Steve]

Source: Omaha World Herald-AP

PITTSBURGH (AP) — The new owners of H.J. Heinz Co. have offered buyouts to all workers in Pittsburgh, where the ketchup-and-food giant has been based for decades, but insist the offer doesn’t signal a plan to move the company’s headquarters.

Instead, Heinz officials said the buyout is being offered because the new owners, Omaha-based Berkshire Hathaway and Brazilian investment firm 3G Capital, recognize the company’s new culture might not be “the perfect fit” for longtime Pittsburgh-based employees. Heinz officials said any workers who quit will be replaced, leaving the company with the same number of workers in Pittsburgh.

The buyout offers, which begin at six months’ severance pay and increase depending on years of service, were sent out last week to all 775 Pittsburgh employees. The workers have until Monday to decide whether to accept.

FULL story at link.


Read more: http://www.omaha.com/article/20140415/MONEY/140418868/1707#heinz-offers-buyouts-to-all-pittsburgh-workers

[seabeckind]

1. Shedding obligations.

Empty building in a year.

Only presence in the US will be a stock ticker and a forwarding address to the Caymans.

And a subcontract to ADM or some such.

[Blue_Tires]

3. +1

[jeff47]

20. No, their factories are elsewhere. They want younger workers.

This is dumping longer-term (and thus higher-paid) employees for younger, cheaper, employees.

[richdj25]

2. Translation =

Closing down plant - moving to below minimum wage paying area - like Mexico.

[hack89]

5. It is not a plant. It is their headquarters

The company's world headquarters are in Pittsburgh, Pennsylvania, where the company has been located since 1890, and the company's "keystone" logo is based on that of Pennsylvania, the "keystone state". A majority of its ketchup is produced in Fremont, Ohio. Heinz Field was named after the Heinz company in 2001. Heinz opened a pickle factory in Holland, Michigan, in 1897, and it is the largest such facility in the world.

Heinz has factories in the following locations:[citation needed] Arizona (Phoenix), California (Chatsworth, Escalon, Irvine, San Diego), Jacksonville, Florida, Pocatello, Idaho, Iowa (Cedar Rapids, Muscatine), Fort Myers, Florida, Newburyport, Massachusetts, Ohio (Mason, Massillon), Ontario, Oregon, and Florence, South Carolina.

[seabeckind]

12. Maybe we can start a pool.

Pick the date each of these factories will be sold (divested) and turned into just a cog in the supply chain.

Then each of these factories will be given the opportunity to "bid" for the corporation's business. Of course to be fair any outside factory will be allowed to bid also.

SSDD

(added on edit) isn't this the GM, Boeing, etc, corporate model?

[goldent]

28. Thanks for that info

Glad to see they produce it throughout the US. I check the origin of most food I buy, and if a food can be reasonably produced in the US, I will only buy US-sourced.

[hack89]

4. Going for a younger workforce. nt

[underpants]

6. Wow they are trying the "it's not you, it's me" bit

the company’s new culture might not be “the perfect fit” for longtime Pittsburgh-based employees.

[1000words]

9. Amazon is pulling the same pathetic shtick:

http://philadelphia.cbslocal.com/2014/04/14/amazon-offers-employees-5k-to-quit/

================================

How kind that these corporations care so much about their employees' happiness.

[tofuandbeer]

7. "but insist the offer doesn’t signal a plan to move the company’s headquarters."

When corporations say "this doesn't necessarily mean...", rest assured that's what it means.
I think "doesn't signal" (used above) is doublespeak.

I worked for a successful small company for a long time, and after it was bought by a corporation, we heard this kind of corporate doublespeak over and over. It always ended to our disadvantage.

[progressoid]

8. Not to worry. These things always turn out for the best for the employees.

[AleksS]

10. Who are the new owners, Bain capital?

Who are the new owners, Bain capital?

Those noises they're making sound like the mating call of the vulture.

[ForgoTheConsequence]

11. Berkshire Hathaway is outsourcing Fruit of the Loom to Central America.

Warren Buffett is a scumbag. His entire philosophy is poison and it sickens me that he gets held up as a model of the "progressive" rich person.

[1000words]

13. Buffett wants Hillary.

Says he "likes what she believes in."

Uh huh ... I'm sure he does.

[ForgoTheConsequence]

15. I hadn't heard that.

But it makes sense. Especially after Hillary's little trip to Asia with representatives of DOW Chemical Corp and Mastercard, and her support of TPP.

[antigop]

22. here ya go....

http://www.politico.com/news/stories/1112/83896.html

[Bohemianwriter]

14. A Proper response to this would be:

50 000 USD, PLUS shares in the company.

Why should only white collars have access to shares an not the workers whom created the wealth?

[Divernan]

18. There are no shares; buyout deal took the company private.

[Jack for Sanders]

16. On February 14, 2013, it was announced that Heinz would be purchased by Berkshire Hathaway

On February 14, 2013, it was announced that Heinz would be purchased by Berkshire Hathaway (Warren Buffett) and 3G Capital (http://www.3g-capital.com/) for $23 billion. Including debt assumption the transaction is valued at $28 billion. According to Heinz, the deal is the largest in food industry history. Berkshire Hathaway and 3G will each own half of Heinz with 3G running the company. Berkshire and 3G paid $72.50 a share.

The acquisition was completed in June of that year. Berkshire and 3G immediately named former chief executive of Burger King Worldwide Inc, Bernardo Hees, as the CEO.

On August 13, 2013, Heinz announced it was cutting 600 jobs in North America.

On October 25, 2013, fast-food chain McDonalds announced it would end its 40-year relationship with Heinz, after CEO Hees took office. Investment company 3G Capital which at the time partially owns Heinz also owns a portion of McDonald's competitor, Burger King.

http://en.wikipedia.org/wiki/H._J._Heinz_Company

[Divernan]

17. New Brazilian mgrs. speak Portuguese; schedule meetings every Sunday.

Sent out to each and every one of the 775 Pittsburgh employees. What a slap in the face! Berkshire-Hathaway/Brazilian Co. 3G, new owners will squeeze every centime of profit out of the company. They don't need no stinkin' experienced employees when they can hire on the cheap! Does anyone doubt the quality of the products will similarly be slashed - and the newbies have no pride of place in the company so will keep their mouths shut about it.

Corporate bloodsuckers! One comment from Heinz employee on Glassdoor website:" For a company that once placed tremendous value on work/life balance, the mere mention of the concept is an automatic elimination from the interview or career elevation process. No longer is the corporate work week viewed as Monday - Friday but Sunday - Saturday, as senior level executives now schedule Sunday afternoon meetings to review weekly performance results. This has contributed to employee morale sinking to what could be viewed as all time lows."
Another comment: Brazilian executives speak Portuguese to each other in meetings, although 90 percent or more of those in attendance don't speak it.

Heinz was a profitable company - not in distress - but the bloodsuckers knew they could squeeze more money out of it by screwing the workforce.

[amandabeech]

25. Senior level executives now schedule Sunday afternoon meetings to review weekly performance

results.

Brazilian executives speak Portuguese to each other in meetings, although 90 percent or more of those in attendance don't speak it. That is unspeakably rude.

This is horribly, horribly disgusting. It just makes me cry. They're destroying families and communities for a couple of cents of profit.

Well, I'll be buying the competition, even though I've been a lifelong devote of their ketchup. Their products will probably be as substandard as their workplaces soon.

[ballyhoo]

26. I'll do the same, but you might be surprised at the number

of people who will do nothing. There is no longer any cohesiveness in the American people. I understand why. Still, I have to do what I feel is right. Maybe the blood moon really is a sign.

[amandabeech]

27. Maybe new management will try to extract money by skimping on the

ingredients and cooking/pickling of their products. That might drive consumers to more tasty brands.

As to the division of the American people, it's been a long time coming and it is obvious. What the remedy is, I don't know. It seems that if the nation came under attack with enemy troops on the beaches, we still would be so divided that half the country would refuse to fight in order to spite the person in the White House because of that person's political views or even appearance. Disgusting.

[ballyhoo]

31. Very honest answer AmandaBeech. I appreciate

it. Oftentimes I get responses here and I wonder if the respondent is living in the same country as me. I agree with everything you said so I guess there is nothing to say. Thanks for your response.

[amandabeech]

33. You're welcome!

I like Warren, too.

[warrprayer]

19. I grew up in Pgh.

It is listed as one of the ten worst cities for the homeless.
And as with this, vulture capitalism has stripped it to the bones.
Started when Reagan dropped tariffs on Japanese steel in the 80s.
I now live far enough away so the stench of Richard Mellon Scaife is not in the air.

[AnnieBW]

30. So did I

Only I moved to the DC area, where the stench of the Kochsuckers overpowers everything else. My uncle John worked at the Heinz plant, and his nickname within the family was "Heinz" because of it. I still have my original Heinz pickle pin that he got me. I'm just glad that he's not alive to see this day.

[diabeticman]

21. maybe I am bias coming from the area but Heinz won't be the same without Pittsburgh.

My wife worried about this happening...

[SkatmanRoth]

24. What would you bet the replacement workers are non-union? n/t

[Fearless]

29. Oh I'd say $25B give or take.

[Kilgore]

32. Happened to my wife and I number of years ago

In retrospect it was probably the best thing that could happen to us. We were stuck in a rut and hating work.

Wife and I took our severance and started a business and today have 5 great employees that are like family.

Realize our story is not universal, and others will undoubtedly not be as fortunate. But after reading all the doom and gloom posts, we know for a fact it's not universally bad for everyone.

Kilgore