Offshoring Oreos

 Help Save American Jobs. If It’s Not Made In The USA, Put The Cookies Down

A decision by a multi-national corporation to move Oreo cookie production from Chicago to Mexico has prompted some Denverites to think about American jobs and domestic products.

“One person may not be able to change the world, but buying American-made products can make a difference one purchase at a time,” says Tracey MacDermott, Chair of Greater Park Hill Community, Inc. “We help ourselves by purchasing American goods. And if it’s a non-essential product made overseas, put it down and walk away.”

Those supporting bakery workers who are losing their jobs in Chicago say buying Oreos made only in the U.S. is an important way to demonstrate that public interest is more important than profit. Some even suggest they will stop buying the sandwich cookies altogether.

“Global commerce is extremely complex, and corporations have every prerogative to increase profits,” says Dan Severt, President of Local 26 of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM) in Denver. “But when a company like Mondelez puts several hundred workers out of a job and shifts production of an iconic American product to Mexico, it’s time to re-examine the situation.”

Voting with our wallets

Mondelez was formerly known as Kraft. As a result of complex mergers and acquisitions by Philip Morris companies in 2000, Nabisco became part of Kraft. In 2011, Kraft consolidated its worldwide snack food products under the Mondelez brand.

Now, Mondelez is putting at least 600 workers out of jobs by reducing the size of the Chicago plant, which produces Oreos. The company intends to save significantly on production costs by making Oreos at the world’s largest bakery in Salinas, Mexico.

“Let’s remember that these job losses are not just numbers, but represent hard-working Americans. In addition, there are at least four other people dependent on each Chicago worker losing her or his job,” says Laura Avant, a social justice activist who lives in Park Hill. “The corporation is actually shifting some plant downsizing costs to taxpayers through unemployment, lost tax revenue, and lost Social Security payments.”

Aaron Goldhamer, a Democratic candidate for Colorado House District 8, called the move, “disappointing,” specifically Nabisco’s disregard for U.S. workers.

“Coloradans should support American-made products to ensure that our jobs aren’t simply outsourced abroad,” Goldhamer told the Greater Park Hill News. “We can vote with our wallets by supporting companies that rely on U.S. labor. By doing so, we can help ensure our middle class is not further eroded by companies that appear to care more about their bottom line than the American people they rely on to buy their products. Oreo’s move highlights the importance of really scrutinizing trade agreements like the TPP (Trans-Pacific Partnership).”

Leslie Herod, also a candidate for House District 8, which includes Park Hill, concurs.

“American and Colorado jobs keep our neighbors employed and able to put food on the table for their families,” she said. “It is imperative that our elected officials fight to protect working families and keep good jobs in America.”

Check the package labels

BCTGM is urging consumers to buy only Nabisco products made in the United States. According to BCTGM President David Durkee, buying American-made products sends a clear message that outsourcing good jobs to a country with low wages and minimal regulatory standards is not acceptable.

BCTGM encourages buyers of Oreos, Chips Ahoy, Ritz, Nilla Wafers, and Premium saltine crackers to check the package labels.

There are two indicators of the product source. One is the phrase “Made in Mexico” under the ingredient list. The other is in the date and plant identification code. The initials AE, AH, AP, AX, AZ, and XL indicate American-made products. The initials MM and MS signify Mexican facilities. More information at www.BCTGM.org and www.fightforamericanjobs.org.

“In the end, it doesn’t matter what we think; it’s all about business and profit,” said Jorge, a union baker at King Soopers who asked his last name not be used. “When people want specific products, they don’t pay attention to where the product is made. But the company isn’t going to reduce the price for cookies made in Mexico.”

Jorge works at Store #5 in Mayfair, handcrafting baked goods for many Park Hill customers.

“America’s manufacturing strength depends on the power of buying American-made products,” said Severt. “Jobs in this country support more than just those earning a wage. For example, workers in foreign countries don’t pay taxes in the United States. These taxes help support everything from Social Security to national defense, and even interest on the nation’s debt.”

Family, friends, neighbors

With Colorado’s unemployment rate the third lowest in the nation, job losses don’t always get much attention. But even in Denver, Cerberus Capital Management recently eliminated 79 union jobs by closing the Safeway corporate baking center along I-70. Some of those workers got jobs at other bakeries in Denver. Cerberus is a private equity firm, which owns Safeway and Albertson’s.

(Ironically, in Greek mythology, Cerberus is the name of a multi-headed hound that guards the gates of the underworld to prevent the dead from leaving.)

Sprint closed a call center in Englewood, eliminating 250 jobs. Walmart’s closure of 154 stores nationwide put over 10,000 workers out of jobs, including many in Denver. Because of bankruptcy, Sports Authority is cutting at least 100 Denver jobs.

Baxter Healthcare, an Illinois-based provider of medical devices, is closing its Colorado facility in the Tech Center, putting more than 100 people out of a job. Lake Region Medical, a firm that makes healthcare device components, is shutting down in Arvada, eliminating 164 jobs.

“Sure, we need to create jobs in this country, but we have to realize there wouldn’t be so much pressure to create if we didn’t allow existing jobs to be destroyed day after day. What’s happening in Chicago epitomizes the downfall of the production of goods in the United States,” Severt says.

“American workers are our families, friends, and neighbors and we need to support them,” says MacDermott. “It would not be unusual to find that some people in Denver have direct connections with the workers losing their jobs in Chicago.”

The power of buying American

“Coming from Ohio, I’ve witnessed thousands of jobs lost in manufacturing and one manufacturing job creates 17 other support jobs,” says George Mayl, a community leader in Denver’s Corey-Merrill neighborhood.

“Hundreds of thousands of people have lost jobs and the trade deficit has increased dramatically because of work sent overseas and foreign competition. Shame on Congress for not supporting American workers.”

Presidential candidates Bernie Sanders, Hillary Clinton, and Donald Trump have harshly criticized the plant downsizing. Clinton spoke directly with Mondelez CEO Irene Rosenfeld to get her to reconsider the decision. Representing the Sanders’ campaign, former Communications Workers President Larry Cohen has been involved in bolstering the efforts of Chicago bakery employees to save their jobs.

The company, based in suburban Deerfield, Illinois, expects to save $46 million a year by shifting production to Mexico. After all the jobs are cut, Mondelez will still have about half of its Chicago workforce, or about 600 employees, at the bakery on the city’s southwest side. The plant will no longer make the famous cream-filled Oreos.

“America’s standard of living is falling like a rock because we ignore the power of buying American-made products,” says Severt. “Americans would not be working longer hours and earning less if we just recognize the power behind buying American. We can start now by supporting the call to buy only those Nabisco products made in the United States.”

For their parts, Clinton and Trump have suggested legislation to force corporations to return some tax benefit payments if the companies send jobs overseas.

Dave Felice is an At-Large Board Member of Greater Park Hill Community Inc. He is a member of National Writers Union, Local 1981, and recipient of awards in 2015 and 2016 from the Society of Professional Journalists for news column writing. He can be contacted at gelato321@aol.com.