Kraft to lay off 25 local drivers

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Effective Oct. 6, Kraft Foods Inc. will reduce the number of full-time truck drivers in the local plant's private transportation fleet from 74 to 49. Ac-cording to Kraft spokesperson Cathy Pernu, a total of 25 truck drivers plus two truck mechanics will be eliminated to in-crease the cost efficiency of the Springfield plant's transportation division.|ret||ret||tab|

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Third-party carriers|ret||ret||tab|

The company has decided to utilize third-party carriers for long hauls those totaling 300 miles or more from the Springfield plant, thus eliminating a portion of the local Kraft-owned private fleet.|ret||ret||tab|

"Factors beyond our drivers' control led to the decision to reduce the size of the fleet operations there," Pernu said by telephone from Kraft's corporate affairs office in Northfield, Ill., a suburb of Chicago. "As our distribution network has evolved, and with current competitive pricing in the transportation industry, it's more cost effective today for Kraft to use contract carriers ... for long hauls from Springfield than to use the Kraft private fleet." |ret||ret||tab|

Pernu added that the short hauls from Springfield will continue to ship via the private fleet.|ret||ret||tab|

"It's not a reflection on the private fleet associates' performance they've worked hard, they've provided excellent service to internal and external customers," she said. |ret||ret||tab|

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Drivers' options|ret||ret||tab|

The drivers will be given four options, Pernu said: voluntary separation, changing status from full-time to part-time, taking layoff with one-year recall rights and finally, involuntary separation. Pernu also said that those drivers who are eligible for retirement may choose voluntary separation and will receive a severance package.|ret||ret||tab|

"The voluntary separation will be offered first to the most senior drivers," she said. "Associates whose jobs are eliminated would receive separation benefits according to the severance plan for Kraft, which would include severance pay that's based on each individual's years of service, and there would be benefits continuation for a period of time, as well. We would also provide assistance in job placement by working with Missouri Job Service and conducting resume writing and interviewing workshops."|ret||ret||tab|

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National job cuts|ret||ret||tab|

These are the only job cuts being made nationally throughout Kraft's 18 private fleets, which report to Kraft's Transpor-tation Group in Madison, Wis. Pernu said a third-party carrier has not yet been chosen, and she didn't know if it would be local.|ret||ret||tab|

"This is very much a local situation based on the places to which we ship from Springfield, the types of hauls that occur from the Springfield area," she said.|ret||ret||tab|

While the fleet layoffs do not affect the local plant operations, Pernu said there is a product line change in the works. |ret||ret||tab|

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Cheese change|ret||ret||tab|

Sometime next year, the plant will swap its Cheese Whiz production with Easy Cheese, Kraft's processed cheese in a pressurized can. She said the Easy Cheese production is coming from the Wrightstown, Wis., plant, and Spring-field's Cheese Whiz operations will move to the plant in Champaign, Ill. Kraft has slightly more than 100 plants in the United States, Canada and Mexico, Pernu said.|ret||ret||tab|

She added that the new product line will not require any staffing changes, and it is unrelated to the transportation layoffs.|ret||ret||tab|

"On an ongoing basis we're looking at all of our operations our plants and our fleet/distribution operations to make sure that we're being as efficient as possible ... and as part of this process, sometimes product is reallocated among the facilities," Pernu said. "We make changes based on business needs."|ret||ret||tab|

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Springfield plant|ret||ret||tab|

The Springfield plant already produces Kraft Macaroni & Cheese, DiGiorno sauces, Kraft natural and shredded cheeses and Velveeta. Its processing equipment can accommodate the production of Easy Cheese, but some packaging equipment will be installed, Pernu said, "without incurring significant capital investment."|ret||ret||tab|

She added, "The volume at the Springfield plant will actually increase with the Easy Cheese (production), but that doesn't change the fact that in the transportation market the Springfield fleet that is associated with it is more cost-effective to use outside carriers for the long hauls and the private fleet for the short hauls."[[In-content Ad]]