Union busting? Hello Fresh lays off over 600 employees
The Berlin company Hello Fresh is closing a US location in California at the end of the year. The recipe box supplier is thus putting more than 600 employees out of the door – and that despite increasing sales. The reason could be so-called union busting, i.e. preventing the formation of trade unions.
So far, Hello Fresh has come through the crisis relatively unscathed. The company reported for the first two quarters of 2022 record sales. However, profits fell by around 50 percent compared to the previous year. Again Business Insider reported, Hello Fresh is closing a US location in California at the end of the year.
Hello Fresh closes US location and lays off 611 employees
The company is again laying off 611 employees, but at the same time expanding to Ireland. The reason for the layoffs is apparently not the economic situation. Rather, a non-extended lease of the location is the reason. A company spokesman told the Business Insider to:
Hellofresh’s Richmond manufacturing facility lease expires in early 2023 and after a comprehensive analysis of our manufacturing network, Hellofresh has decided not to renew the lease. The decision not to renew the lease does not reflect the performance of the team. We are grateful for their contribution.
Union Busting: Are Union Formations the Reason for the Layoffs?
Hello Fresh apparently informed its US employees of their layoffs a few days ago. Accordingly, their positions would be eliminated on December 11, 2022. What is striking, however, is that the affected location is one of two US branches where employees wanted to form a union last year.
It is true that in the end there was no trade union organization in either of the production facilities. However, Hello Fresh has been accused of quashing its employees’ aspirations through a consulting firm. In Germany, too, critics accused the company of union busting after the failed establishment of a works council.
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