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More aggressive cost cutting at Kraft Heinz

12 October 2017 News
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Kraft Heinz (KHC) continues to struggle with sales growth as consumer demands shift particularly in developed countries towards healthy, natural and organic foods. Slow growth in consumer spending and retailer buyer downward pressure on prices, particularly from deep discounters (e.g. Aldi, Lidl), is also slowing sales growth for companies like KHC. In response to market conditions and sales declines and to have continued profitability and ability to service its large debt load, KHC continues its aggressive cost cutting to the detriment of its workforce.

As part of its cost cutting measures, KHC is increasing automation in its facilities to reduce labour and other operating costs. In workplaces where IUF affiliates are well organized, the deployment of new technologies should become a topic of collective bargaining. Please notify the IUF Secretariat of any instances where new technology is being deployed in KHC and where it has successfully been bargained over.