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NYC: Stella D’oro Cookie Factory Plans To Shut Down


sdora.jpgAbout 130 bakery workers who have been on strike since August are going back to making Stella D’oro cookies in the Bronx on Tuesday — but the return may be bittersweet.

Along with invitations to resume their old jobs, the workers also received notice that the plant’s owner planned to shut it down permanently in October. The owner, Brynwood Partners, a private investment firm in Greenwich, Conn., said that it could not afford to continue operating the bakery without significant concessions from its unionized work force.

The workers refused to accept the pay cuts and changes in benefits that the owners had demanded and began picketing 11 months ago. But last week, a federal administrative law judge ruled that Stella D’oro, which Brynwood bought from Kraft Foods in 2006, had to reinstate the striking workers and pay the wages they had lost since May 6.

Company officials said that they believed the judge’s decision was flawed and that they planned to appeal it. But in the meantime, they dismissed the replacement workers who had operated the bakery during the strike and prepared for the return of the original workers, who are members of Local 50 of the Bakery, Confectionery, Tobacco Workers and Grain Millers.

In a statement released on Monday afternoon, Stella D’oro said the bakery was not profitable and would not be without significant changes to its existing wage scale, which paid $18 to $22 an hour to the most skilled workers.

“By refusing to compromise and insisting on maintaining a high labor cost structure, the union leadership has ensured that the jobs that they were trying to protect would eventually disappear from the Bronx forever,” the statement said.

The company said it planned to continue producing cookies, breakfast treats and breadsticks, but it did not indicate where. Outside the dormant bakery on Monday afternoon, Stella D’oro’s chief operating officer, Daniel J. Myers, said, “It’s certainly sad all around for everyone involved.”

(Source: NY Times)



33 Responses

  1. How many more American plants and businesses from all areas of the economy will close due to the pig-headed intransigence of union leaders who don’t see their world crumbling around them. For a per worker savings of a few hundred dollars a year these union leaders are losing these jobs altogether. Wake up AFL-CIO.

  2. Idk Flatbush Bubby, but at least those who are makpid on Pas Yisrael (which I’m not)will be happy theres one less nisayon

  3. I feel sorry if there are any non-union workers,
    but for union workers, it will teach a lesson.
    If there isn’t money, don’t push. If the MTA
    could do that, the fares would not go up. Unions
    are killing everyone. There was a need for it
    at one time, but at this point, their demands are
    ridiculous.

  4. Those cookies were good. I noticed that all the frum stores had them on sale a few weeks ago, but they were overbaked probably by the strike breakers. I’m going to miss them.

  5. we have to do something, this cookie factory comes before worrying about agriprocessors and where we will get our meat

  6. Business that don’t cut costs, and can’t increase prices, will fail. Labor unions that want higher wages during a depression will destroy their companies. Wages fall during times of deflation. That’s is simple Economics 101, which some people don’t understand.

  7. And Obama wants to make every company unionized, just comes to show where this country is heading. Small example….

  8. Either the posts whining, “We want our cookies!” are tongue in cheek humor or the posters are bigger idiots than the union members who ran this firm out of business.

  9. Here in Toronto, we are in week 3 of a garbage/daycare/parks and rec programs/ferry boats(to centre island)/historical homes/canada day fun/etc. strike, due to stupidity and shotrsightedness of the unions, who should be glad they have a job at all! this is not the economic time to play these games!

  10. I grew up on Stella D’oro cookies! (over 50 years ago, wow!)

    I guess the shtreimel cookies are the round ones with the chocolate in the middle.

  11. Its just a matter of time before it becomes obvious to union members that the union serves no purpose and does more harm than good. They have destroyed many companies and will hurt many more.
    Of course no one in the press will accurately document the number of job losses directly related to the stubborn unions unwilling to fairly negotiate.

  12. I think the issue is Pas Yisrael. the union is demanding that the cookies be made available to all, even Pas Yisrael eaters. Thats why the comapny is closing.

  13. #23 Got the point – the unions already shut down the auto industry – no chidush here – but cookies – they are important.

  14. this is only the begining

    YOU VOTED FOR OBAMA?
    HIgher unemployment is what you voted for.

    You voted fo Obama?
    israel not a jewish country is what you voted for

    You voted for obama?
    His history showed him anti jewish

    but you voted for obama
    or livni
    or olmert
    or bibi who has a history of caving in and giving it away..

    and we cant talk about the sins of israel
    thats called lashon hara…

    If we dont talk about it,
    how can we rectify them.

  15. Either the poster whining, “bigger idiots than the union leaders” has literalitis or the poster is a bigger tip than the union members who ran this firm out of business. 🙂

  16. #29 – What? You can’t see Obama’s blatant anti-semitism at work in this? Can’t you see the clear connection between disengagement and our new cookie shortage? Watch Fox News and only vote for conservative rednecks, its the only way to protect your cookies’ future!

  17. Well folks, there goes more jobs that were being “protected” by the Union. I wonder how all those workers feel now about their union? Probably not too good because shortly they WILL be like the bakery WAS doing, which is/was needing the dough!

  18. Locknload, lighten up.
    Any way, the company said that they will find a new location. Than means SHTRAMEL COOKIES FOR ALL!!! Yaay! I can’t eat them with out thinking of my in-laws. (Yes, that is a good thing)

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