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Chocolate, the story of our future?

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Old 17th November 2010, 18:36
nickcsadler nickcsadler is offline
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not sure what you are attempting to say bm.. but clearly as you have read my posts on here one part of your question was redundant!!!
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Old 17th November 2010, 19:04
Gotno Gizmo Gotno Gizmo is offline
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Response to BM

You said:-
Sorry to hear about the bad news. I'm not sure what this situation is like in Britain to make the company want to move the factory or what factors are contributing to such a move.

I cannot understand why you have difficulty in understanding the reason why factories are being closed in a country like England and production moved elsewhere. If you have read the previous posts it should be self evident. British workers cannot work for the same hourly rate as a Polish, Chinese or Indian worker no matter how desperately they need a job. I'm sure that the trade unions in the USA are not arguing for a certain level of the workers pay out of sheer greed, no more than the British trade unions are. They are attempting to maintain their worker's current pay, although in many cases the workers are accepting pay freezes, or even pay cuts. However inflation continues upward, much of which caused by profit hungry capitalism that continues to pay itself higher salaries, bonuses and dividends, whilst expecting workers to produce more for less.
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Old 17th November 2010, 19:06
bm-21Lemko
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Originally Posted by nickcsadler View Post
not sure what you are attempting to say bm.. but clearly as you have read my posts on here one part of your question was redundant!!!
Yes very true indeed. The question was more along the lines of sarcasm than a legitimate question.

Gotno Gizmo wrote about how Capitalism's negative affects on society towards the end of his first entry of this thread and you wrote that "we must stand against the capitalist attack" and that society as a whole is being screwed by the establishment.

Now to my point. I asked if you used a computer or a vehicle for transportation which are by products of capitalism.

I just don't understand why people pick and choose.

Another example is after 9/11 people blaming the government for not doing more to make airport security tighter and now they are complaining about body scanners.

Not saying that the factory moving to a different location is not bad and I don't know all the factors in the reasons for moving the factory. Just making an observation.
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Old 17th November 2010, 19:21
bm-21Lemko
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Originally Posted by Gotno Gizmo View Post
You said:-
Sorry to hear about the bad news. I'm not sure what this situation is like in Britain to make the company want to move the factory or what factors are contributing to such a move.

I cannot understand why you have difficulty in understanding the reason why factories are being closed in a country like England and production moved elsewhere. If you have read the previous posts it should be self evident. British workers cannot work for the same hourly rate as a Polish, Chinese or Indian worker no matter how desperately they need a job. I'm sure that the trade unions in the USA are not arguing for a certain level of the workers pay out of sheer greed, no more than the British trade unions are. They are attempting to maintain their worker's current pay, although in many cases the workers are accepting pay freezes, or even pay cuts. However inflation continues upward, much of which caused by profit hungry capitalism that continues to pay itself higher salaries, bonuses and dividends, whilst expecting workers to produce more for less.

Well I assumed as much, but again i don't know what the unions are asking for and what the entire picture is. What is the company's goal to maintain the same price of chocolate for its customers? If thats the case than as you said if the wages the union are demanding do not allow the company to make a profit than of course they are going to move it. Its a double edged sword. Keep the workers happy or keep the customers happy. I would never believe the workers are greedy. I understand they are just trying to provide for their families.

Another thing is I don't live in Europe or Britain for that matter. So I believe Britain has socialized medicine. Thats a big difference compared to U.S. auto companies that have to pay each worker's health insurance.

Yes there is quite a bit of evidence to claim capitalism is greedy. But inflation has been constant throughout history. Usually involving an individual. so yeah you can cast blame on a system but its a person who is behind the driving seat.

I will also make this argument. The world now has been closer than ever since the invention of mass comunication devices such as computers and cell phones. Would you say this is just the new reality of a global marketplace? i know in my lifetime I will not get to pick and choose where I want to live. i will have to live where the job is.


In history I'm sure people of the Agrarian society were saying the same thing during the industrial revolution. No workers were longer needed to work the farm because of farm machinery and they had to move to big industrialized cities to work.
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Old 29th November 2010, 10:04
Gotno Gizmo Gotno Gizmo is offline
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The Cadbury Saga continues

The CEO of Kraft Foods at the time of the hostile takeover of the British Cadbury's chocolate business, that has lead to the closure of factories and several hundreds of staff losing their jobs, is Irene Rosenefeld. Mrs Rosenfeld the daughter of European Jews is reported to have earned $26,345,201 USD during 2009. Her 2010 salary (referred to as compensation) will undoubtably be much larger to reflect the added earnings awarded to her for her participation in the Cadbury's takeover.

Kraft owned Cadbury has closed its Kenya factory and now moved the production to South Africa

From web based business pages:-

In a low-profile restructuring that has left staff anxious, Kraft Foods, the new global owners of Cadbury, recently stopped production of chocolates in Kenya in favour of South Africa.

This is the biggest shake-up in at Cadbury Kenya and East Africa Ltd since US-based Kraft Foods bought its British rival that makes food beverages, chocolate, candy and gum confectionery, in a hostile takeover.

Kraft Foods strategy is anchored on cost-cutting and efficiency. The company has been culling non-profitable Cadbury operations globally. As part of this trend, Kraft has closed the chocolate production unit at Cadbury Kenya factory and has been importing the products from South Africa over the past five or so weeks.

People familiar with Cadbury's operations in Kenya say Kraft Foods' top managers toured the plant sometime in August to inspect its operations and viability. The Kraft officials ordered the closure of the chocolate line in which, according to the people, did not meet Kraft's global quality and business standards.

The local subsidiary has 300 employees, nearly half of them casuals. The chocolate line had two shifts of 50 casuals each, putting their number at 100.The plant has been left make only cocoa and drinking chocolate. Cadbury Kenya is said to be retraining redundant staff to be redeployed to the food drinks division, with the fate of over 100 casual employees and others in that unit uncertain.

Egypt - and now South Africa - is the biggest beneficiary of Kenya's manufacturing exits, getting the bulk of the contract jobs from local companies, frustrated by high cost of production and uneven business environment. The cost of power in Egypt is three times lower, helped by heavy government subsidies.

Global companies are starting to reconfigure their regional operations to take advantage of tariff reforms in different countries in various free trade areas, which have seen some lower-cost producing countries become regional manufacturing hubs. The companies only retain marketing and distribution functions.

Some local consumer household brand makers are outsourcing manufacturing services from specialist companies, a blow to Kenya because as manufacturing vanishes, so will the jobs, incomes and taxes.
(end of business pages extracts)

How long will it be before some highly paid executive will outsource you job to a cheaper cost, lower tax country?
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Old 29th November 2010, 18:24
AkMike AkMike is offline
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Not soon enough to suit me!

The quicker their buy out is the better I like it.
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Old 2nd December 2010, 08:32
Gotno Gizmo Gotno Gizmo is offline
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Kraft, Nestle, they're International Tyrants

Nestle, another multi national corporation responsible for the aquisition and closure of chocolate factories in England has embarked on the same kind of business modus operandi as Kraft.
See this webpage:-
"Creating Shared Value" in the Dominican Republic: Outsourcing, Layoffs, Overnight closure | NestleWatch
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