Wednesday, December 08, 2004

Sinking ships raise tide

Patridiot Watch has a post on the restructuring at Colgate-Palmolive which will result in 8 factories closing in the short-term and 4,400 jobs being cut, and 2 dozen factories closing over the next four years. The New York Times has more details:
Although Colgate shut 24 of its 112 factories and eliminated more than 3,000 jobs when it went through a restructuring less than a decade ago, analysts said that many of its existing plants in the United States were old, unionized, and did not have the manufacturing- line efficiency of rivals.
That's one way to bust a union, I guess.

Top earners need not fear the axe: no senior management staff positions will be eliminated. It does seem like a pretty good life for senior staff, 800 of whom get allowances ranging from $2000 to $11,500 a year for things like opera tickets, yoga, and dog sitting. AP has that story including information on the company's top execs:
The company had $9.9 billion in sales last year and paid its top five executives $23.3 million in cash and stock, plus another $9.1 million in stock options. The company's highest paid executive, chairman and CEO Reuben Mark, made $10.4 million in salary, bonus and stock awards.

Market reaction to the restructuring announcement? Stocks rose.

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