Hershey's tentative labor deal may slash 600 jobs

| Wednesday, June 2, 2010

The Hershey Co. said Tuesday that it is proposing to slash up to 600 jobs in a move to modernize and expand the newer of its two hometown plants while shutting down production in the original plant built by founder Milton Hershey.

The plan is part of a tentative agreement with union negotiators and must be approved by a majority of the approximately 1,600 unionized workers at the two Hershey chocolate plants.

Hershey spokesman Kirk Saville said the move is necessary to remain competitive. The nation's second-largest candy maker said it plans to significantly expand and modernize the newer West Hershey plant.

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