SHORTAGE: Strikes Push Stressed Economy Toward Breaking Point

By Orlowski Designs LLC @ Shutterstock.com

The inflation being caused by expectations for Joe Biden’s absurd spending plans and the Federal Reserve’s irregular liquidity operations has put big companies in a bind. Their customers don’t want to pay more for their products, their suppliers want more for supplies, and employees want more money to pay for the rising prices they see in their home budgets. It’s a balancing act that not every company is managing with ease.

If you’re looking to be a member of my Survive & Thrive club, click here.

In the face of inflation, Mondelez International, one of America’s largest snack companies, developed a plan to cut costs that would reduce the overtime pay many of its employees receive by lengthening their shifts. That overtime pay is currently a big part of many employees’ earnings for the year, so the plan has not been well received. The union representing the employees has gone on strike, and now the country may face a snack shortage if the situation can’t be resolved. Jesse Newman and Jaewon Kang report for The Wall Street Journal:

Unionized employees are pushing back against Mondelez proposals that workers see lengthening shifts while cutting into their ability to earn overtime pay, a large portion of many workers’ annual incomes. The company said it is trying to respond to strong demand for some of its products and address disruptions caused by worker absences.

Employees are on strike at three of the four U.S. bakeries Mondelez owns. The company says operations are continuing at its affected facilities, which have enacted preformulated plans to keep production lines running. Salaried employees have stepped in to help at some sites and third-party manufacturers also are working to keep customers’ orders filled, said Laurie Guzzinati, a Mondelez spokeswoman.

“It’s business as usual as we focus on continuing to meet the needs of our customers,” Ms. Guzzinati said. The company says its other manufacturing and distribution facilities are fully operational and that its sales teams are in close touch with customers.

Tops Markets LLC and other grocers said they are ordering more snacks from Mondelez and other suppliers after Mondelez notified them of the strike. Nebraska-based B&R Stores Inc. has been preparing for possible shortages, canceling discounts on Ritz and Mondelez’s other Nabisco-brand crackers to manage supply, President Mark Griffin said. B&R is also ordering more Club and Townhouse crackers from rival Kellogg Co. ’s Keebler brand.

Any potential snack shortage would follow recent shortages of ammo, lumber, food, and fuel, to name a few.

Action Line: Stress levels are rising in America. Everyone can feel it. Stay alert for changes in sentiment. Click here to sign up for my monthly RAGE Gauge alert, a laser-focused report on the state of America.

Bio
Latest Posts

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.