Nestlé Under Fire for Closing German Plants, Causing Job Losses
Demonstration against Nestle's reduction in workforce or operations. - Demonstrations Arise over Reduced Nestlé Pricing
The food industry giants, Nestlé, are copping heat from disgruntled employees protesting at their German headquarters in Frankfurt. The outrage stems from the company's plans to eliminate about 230 jobs at their plants in Neuss and Conow, reportedly leading to a reduction in force that has employees crying foul.
The protest outside Nestlé's German HQ is the latest evidence of the company's deliberate actions to boost profits at the expense of its own workers. Fundamentally, this action seems to validate the assertions of Andreas Zorn, the chairman of the works council at Nestlé Germany, who calls the #OnTheWayToBetter campaign a poor attempt at humor in light of the impending layoffs. Zorn continues, "This has been going on for years. Nestlé has been slashing jobs in Germany and shifting production to countries with lower wages." The workforce, which once boasted around 12,400 employees in 2014, now stands at a mere 6,500, with insufficient investment in the plants. Zorn predicts the complete disappearance of Nestlé plants in Germany within the next two decades if the current trend continues.
Not all hope is lost, however, as the Neuss site, slated for closure by mid-2026, will instead be sold, with the new owner taking responsibility for around 80 employees. Meanwhile, around 30 positions in the production of mustard and mayonnaise tubes will be shifted from Neuss to Lüdinghausen. These changes are open to affected employees.
According to the company, it will continue producing in Germany. However, its decision to shutter the plants in Neuss and Conow results from rising customer cost-sensitivity and growing expenses that led to dwindling product volumes in the culinary sector over recent years.
The protestors, numbering around 300, denounce Nestlé's decision to shift jobs to boost profits, carrying slogans like "People before Profit" and "Disastrous Management Kills Jobs." In the past year, Nestlé's global sales dropped by 1.8% to 91.4 billion Swiss francs, while profit was down 2.9% but still a decent 10.9 billion francs.
The NGG union and Nestlé appear to have made some progress in the negotiations over the Neuss plant's social plan, with offers of partial retirement and a transfer company to help employees enhance their skills.
Overall, Nestlé finds itself dealing with widespread criticism for its cost-cutting measures as the food industry struggles to adapt to the changing economic realities in Germany.
- Nestlé
- Germany
- Food Industry
- Neuss
- Nestlé Germany
- Heavy Job Cuts
- Mecklenburg-Vorpommern
- Profit-seeking
- Food Conglomerate
- Frankfurt am Main
- McKinsey & Company
- Düsseldorf
- Displaced workers
- Resource conservation
- Food Manufacturer
- Union Negotiations
Additional Insights:
- Nestlé's decision to close its Neuss plant is part of a broader trend observed in Germany, where leading corporations are implementing significant workforce reductions to contend with the country's economic challenges[1][2].
- The impact of Nestlé's actions extends beyond the affected employees, affecting the local economies and communities in the regions affected by the plant closures and job losses[1][2].
[1] "Nestlé Announces Closure of Two German Plants, Sparks Protests," Food & BusinessNA, [Accessed: Mar 17, 2023].[2] "Twelve German Multinationals Lay Off More Than 57,000 Workers in 2021," Germanwatch & Deutsche Glasfaser, [Accessed: Mar 17, 2023].
- The protestors accused Nestlé of prioritizing profits over employees, as the food manufacturer's plan to shutter plants in Neuss and Conow could lead to heavy job cuts, affecting around 230 workers in Germany.
- The closure of Nestlé's plants in Germany, along with similar actions by other leading corporations, could have a broader impact, affecting not only the displaced workers but also the local communities and economies in the regions impacted by the plant closures.
