Monday, June 6, 2011

A Personal Post - Allen Family Foods

As many know, I work for Allen Family Foods in Harbeson, Delaware.  Recently job hours have been cut and a lot of rumors have been going around.  This post is for those who work there and follow my blog to understand what is going on - as far I have been told.


Due to the hardships of this depression, and that is what it is, many prices have gone up for the company.  Feed corn for the chickens, transportation costs - fuel in particular, loss of companies to buy chicken from Allen's, and drop in meat sales have all combined to add to the problems that the company must face and address.  The companies that AFF normally deals with have faced hardships themselves.  Some have even gone out of business (various A&P stores and their distributors in particular).  This all affects the bottom line.

From the employee perspective, this is reflective in lost hours.  During the summer when overtime is the norm, employees are facing 30 hour work weeks, and days off.  When workers would normally save for the slow winter months, they are barely keeping on to pay bills during the summer.  If it slows even more during the winter....well, winter is not here yet.

Allen Family Foods is trying to increase sales, cut costs, and continue to produce a great product at an affordable price.  This is not an action that happens overnight.  While the 21st century depression continues, belt tightening may be the only option left.

If things go well, Allen's could increase sales in markets that it has not sold to before.  And if the movement to open international trade works well this year, Allen's could be on the bandwagon of other industries to address food needs overseas.

The unions are powerless to do anything about loss of jobs.  Companies must do what they need to do in order to remain in business.  But with cut in hours and possible loss of job, many will go without medical coverage soon.  A sad effect of union waivers.  Otherwise, regardless of hours worked, a union worker could still get medical coverage.

I made a promise to stick this out and do my very best for the company.  Still, I personally find it a deterrent when a company does not keep communications open and keep hopes alive by filling upper management positions with loyal workers.

As with many, I must wait and see.  Sadly, my lenders will not be so patient.