$7 million works out to $3,500 per worker, per year, for five years (based on 400 employees at Pillsbury and Sonoco). From Charlie White's C-J coverage:
General Mills purchased Pillsbury in summer of 2000 from British food company Diageo for $10.5 billion. In fiscal year 2014, General Mills had global net sales of $19.2 billion.
Indiana economic development officials provided General Mills more than $100,000 in incentives in the last 10 years to ensure kept its workforce of about 480. But over the last three to four years, the company shifted manufacturing of some product lines to its more modern operation in Murfreesboro, Tenn., plant. The food giant spent $100 million expanding there four years ago.
Second, there is no reference to the concurrent implications of negotiations between General Mills and the union, as mentioned previously. Is our $7 million in proposed incentives keeping pay as it is, or does it accompany concessions from the union?
In trying to educate myself about these issues, I've been wondering if there's a Bakery, Confectionery, Tobacco Workers and Grain Millers International Union local in Murfreesboro. If there is, I can't find on-line references to it.
Readers, do you know?
Worth the dough? New Albany may offer $7 million to keep Pillsbury Plant, by Daniel Suddeath (N and T)
NEW ALBANY — Last week, several New Albany City Council members pledged to diligently work on solutions to keep the General Mills plant open.
On Tuesday, the council will be asked to give its blessing for a $7 million bond package Mayor Jeff Gahan’s administration hopes will stave off the closure, which General Mills announced Jan. 8 could happen within 18 months ...
... "We have assembled a business retention and factory-modernization package for our friends at General Mills to consider,” Gahan stated in a news release issued Friday afternoon.
“Our goal is to keep the New Albany facility in continuous operation for as long as possible.”
New Albany can't float that bond and meet its future payment obligations and Dough Boy Gahan knows it. It is political grand standing at its most ridiculous level and it wont make one iota of difference in General Mill's decision.
ReplyDeleteCome on Gahan, you aren't selling Christmas trees anymore and you can't afford to be Santa.