By making the decision to send production to Salinas, Mexico, Nabisco is eliminating hundreds of middle class jobs in this heavily African American and Hispanic community in southwestern Chicago.
These workers refused to accept $46 million in annual concessions, in perpetuity, something the company asked of no other bakery. Thus Nabisco, which already has a plant in Monterrey, Mexico supplying the American market, will take even greater advantage of a low-wage workforce in Mexico.
Nabisco’s decision to send production to Mexico continues a decades-long pattern of closing plants in the U.S., Canada and other industrialized countries, eliminating thousands of jobs and shifting that production to low-wage countries like Mexico, India and Bahrain where workers are vulnerable to exploitation. These countries have few, if any, environmental, health & safety, or food safety laws to protect workers, citizens and the environment.
Over the last 20 years, Nabisco has closed plants in Pittsburgh, Houston, Niles, St. Elmo, Buena Park, Philadelphia and Toronto. Plant closures devastate communities and families, as well as state and county tax bases. Making matters worse, in Chicago, in the 1990’s Nabisco took $90 million in subsidies from Illinois taxpayers; twenty years later they are essentially abandoning the taxpayer’s investment.
Closing plants is NOT the best way to generate savings. In fact, analysts following Mondelēz believe the best way to generate impactful savings is for the company to cut its portfolio of products, greatly reduce its suppliers and decrease its advertising budget to the industry norm. Instead, Mondelēz continues to foolishly ignore this advice.