When a company locks out skilled employees and replaces its entire workforce with inexperienced new hires, here’s what happens: productivity plunges and profits tank.
Losing money is not a wise corporate strategy. Yet, unless American Crystal Sugar Co. agrees to return to contract negotiations with the 1,300 workers the company locked out a year ago, the company is on course to repeat its sorry fiscal 2012 performance. After the company replaced all its seasoned employees, production costs increased by 23 percent and payments to its shareholders lagged behind the rest of the industry, which saw their shareholder payments increase. That followed a year in which Crystal Sugar was hugely profitable, with $1.5 billion in net earnings.
(Sign a petition calling on American Crystal Sugar CEO Dave Berg to treat workers fairly and return to the bargaining table.)