Mondelez

On October 27, Mondelez reported its Q3 financial results. It repurchased approximately $475 million of its common stock in Q3 and paid around $264 million in cash dividends to shareholders all the while continuing the squeeze on its workforce and restructuring its business.

Mondelez has loaded up on debt to boost (on paper) its return on equity while funding buybacks and dividends rather than reinvesting in its business and workforce. The high debt ratio leaves the company, and its workers, highly vulnerable to even the slightest change in interest rates, sales income etc.

Mondelez announced on August 29, 2016 that it had ended discussions with US chocolate maker Hershey regarding a possible acquisition. Mondelez’s attempt to acquire Hershey reflects the company’s drive to boost profitability and scale in snacking and confectionery.

The Mondelez strategy of aggressive cost cutting and shifting production to lower cost countries is paying dividends for investors while it destroys the livelihoods of long-standing employees.

On March 31, Mondelez officially announced the sale of a number of local European brands to French-based private equity investors Eurazeo. In keeping with the Mondelez "journey" into permanent restructuring and accelerated asset sales to fund dividends, the share price, and executive compensation, the announcement should come as no surprise.

Members of IUF affiliates Unite the Union and SIPTU took indefinite strike action on March 3 to protect 'permanent and pensionable' jobs and stop the outsourcing of 17 permanent positions at the Mondelez Coolock chocolate factory.
The Workplace Relations Commission (WRC) brought the parties together to hammer out an agreement.

The IUF affiliate BCTGM has launched a 'check the label' campaign as part of its fight to support their members who are contesting the elimination of 600 jobs at the Nabisco plant in Chicago (click here for background).

Mondelez will eliminate 600 union jobs and close 9 production lines at its Chicago USA plant as part of a production shift to Salinas, Mexico.

In May the company demanded the IUF-affiliated BCTGM come up with USD 46 million in annual savings annually as the price of saving 345 jobs, without offering concrete financial proposals for the union to review.

The IUF-affiliated BCTGM in North America, representing some 4,000 Nabisco workers, reports attacks on trade union rights at Mondelez facilities.

Mondelez has attempted to deny elected union officials access to their members' plants, in violation of the rights set out in collective agreements and in US federal labour law. Management is insisting the union inform management which officers are seeking access, with whom and what they plan to discuss, and imposing management escorts as a condition for the access which is guaranteed by law.

Mondelez on February 26 announced the elimination of 222 of its 900 manufacturing jobs in Ireland. The gum-based plant in Tallaght (south Dublin) will close with the loss of 45 permanent and 17 outsourced positions. A further 160 jobs will be eliminated from chocolate and confectionery production in Coolock (south Dublin) and Rathmore. TimeOut production from Coolock will move to Poland.

The leaders were once again elected as the principal officers of the union and supporters of the leadership fill all 9 positions on the executive.