August 14, 2006
Washington DC—The UFCW—which represents 2,400 workers at six Heinz plants—fully endorses the Heinz management business plan for long-term growth in the food processing industry. The management plan offers the best opportunity for the kind of stable growth that will best benefit all stakeholders—employees, communities and shareholders.
The Peltz plan for re-orienting the direction of the company via a slate of Board of Directors candidates would put the company at risk by incurring excessive debt. The Peltz plan is short-sighted, narrowly gambling on a quick—but perhaps fleeting—spike in company value. The plan would disrupt key customer relationships, sell off operations, eliminate jobs, and close plants with no clear, long-term purpose of building a strong and growing company presence in the industry.
The UFCW agrees with the financial analysts who have concluded that the Peltz plan would place too much financial risk on the company without any real business plan for long-term sustainability.
The wisest and best choice for all stakeholders would be a rejection of the Peltz slate of directors at the company’s annual shareholder meeting next week in Pittsburgh. UFCW international Vice President Mark Lauritsen who heads the UFCW Manufacturing, Packing, and Food Processing Division, will attend the meeting where he will urge shareholders to cast a positive vote for the management plan that puts stability and growth over quick fix schemes.