Teamsters Ask Kraft CEO to Investigate High Management Costs at Stella D'Oro
November 1, 2002
(New York, NY) – New York Teamsters are calling on Kraft Corporation CEO Betsy Holden to investigate allegations of excessive management costs at Nabisco owned Stella D’Oro. Nabisco is a subsidiary of the Kraft Corporation. Teamsters Local 550 in New Hyde Park, New York, represents 65 drivers who have delivered Stella D’Oro Italian biscuits for more than 50 years. Nabisco has bought Stella D’Oro and wants to merge delivery of the product with other Nabisco routes. “It’s time for Betsy Holden to back up her reputation as a tough CEO,” said Rich Volpe, Director of the Teamsters Bakery and Laundry Conference. “Stella D’Oro has been severely mismanaged. It’s time for Kraft to hold their managers responsible for poor business decisions and stop trying to cut Teamster jobs.” Director Volpe realizes that Betsy is ranked as the second toughest female CEO in America* and expects one of the toughest negotiations of his 37-year career. Nevertheless, Volpe says he will be the last Teamster standing if necessary before the Teamsters surrender one package of work that belongs to Local 550. The Teamsters have told Kraft that unusually high management costs in the New York metropolitan area operations is the single most damaging item on the balance sheet. Several options have been discussed to save the Stella D’Oro facilities, including the sale of the company by Kraft. The Teamsters represent more than 2000 Nabisco workers at 91 local unions across the United States. “If Kraft can’t fix the management problems at Stella D’Oro, they should consider selling the company to someone who can,” Director Volpe added. “Under the leadership of General President Jim Hoffa, the number one labor leader in America, we will stand firm in our battle for corporate accountability at Kraft. The Teamsters are ready to work with the company to rebuild Stella D’Oro.” As of October 30, 2002, Nabisco has agreed to extend all terms and conditions of the expiring contract until January 27, 2003. The extension will give the company time to investigate misallocated expenses and or solutions raised by the Teamsters Union. It was also agreed that the period of the extension could be used to find potential buyers to purchase Stella D’Oro. Earlier this week Kraft raised its corporate flag and lowered the Stella D’Oro flag that has flown for half a century. “The day will come when the only flag flying higher than the Stella D’Oro flag will be our great stars and stripes,” Director Volpe added. Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women throughout the United States and Canada. *According to the October 14, 2002 rankings of the most powerful women in business by Fortune magazine.
Teamsters Ask Kraft CEO to Investigate High Management Costs at Stella D'Oro
Kraft Raises Its Flag and Lowers the Stella D’Oro Flag in the Bronx