Loss Of 200 Jobs At Nestlé Coffee Factory In Freehold On The Table

FREEHOLD, NJ — The global Nestlé corporation is "considering options" for its 75-year-old Freehold coffee factory, and that has set off alarms locally about the future of a major business in the borough.

Nestlé may be headquartered in Vevey, Switzerland - also famous for onetime resident and cinema great Charlie Chaplin.

But it has a very local impact on the 227 employees at its instant coffee factory at 61 Jerseyville Ave. on the Freehold/Freehold Township line.

The company has "invited the union to sit down and talk about the future of the site," a company spokesperson said.

For Teamsters Local 11 president Michael Curcio, that announcement came as a surprise. He learned of an employee meeting this week at 3:45 p.m. on Tuesday, he said, and wasn't told what to expect.

While no final decision on the fate of the plant has been made as yet, according to the company, Curcio said he knows he has to be prepared to do his best to keep jobs in Freehold.

"I'm going to fight for my membership," said Curcio, of Teamsters Local 11, based in Haledon.

He said he has contacted Freehold area officials, as well as those at the county and state, including state Sen. Vin Gopal, D-Monmouth.

"I have been made aware of the discussions around the Nestlé factory in Freehold and am actively working with all stakeholders to help in getting to a resolution," Gopal said, including the borough administration, the state Economic Development Authority and Nestlé.

Curcio said he will keep his membership of 200 employees and the public informed of how discussions progress with Nestlé.

"These are just the beginning stages," he said.

According to the company, the discussion includes "an invitation to enter into decisional bargaining, a process through which the union will have the opportunity to offer proposals for our consideration if it chooses to do so," said a Nestlé spokesperson at its American headquarters in Arlington, Va. The spokesperson asked not to be named.

By way of explanation, the spokesperson indicated the aging plant may be an issue for the corporation.

"Although we’ve made investments in Freehold since its opening in 1948, the factory is limited based on its age, flexibility and ability to meet growing consumer demand in a cost-effective way," the spokesperson said.

The company said no "final decision" has been made regarding the factory.

But it acknowledges the turn of events is a concern.

"We recognize this process creates uncertainty for our Freehold team and are committed to providing regular updates and supporting our employees during this process," the company spokesperson said.

Nestlé is a global company with 275,000 employees around the world. Its products are sold in 188 countries, and it operates more than 340 factories in 77 countries, according to internet sources.

No doubt, Nestlé products can be found in nearly every American pantry - from hot cocoa to pet food to Perrier.

But, as with many companies, business demands require a hard look at often aging manufacturing facilities.

"As Nestlé evolves to meet consumer needs now and in the future, we must ensure our manufacturing network is dynamic and set up to support our business," the company spokesperson said.

Meanwhile, area officials are wincing at the news.

The Freehold plant is a mainstay in the borough.

As one would drive from Route 33 to Jerseyville Avenue, the aroma of coffee steaming from vents at the structure was a sure sign you were nearing downtown Freehold.

According to the borough, the plant pays about $600,000 annually in property taxes and provides over $25 million in ratables.

According to Freehold Borough Business Administrator Stephen J. Gallo, the borough received a call from Nestlé's Corporate Affairs director on Tuesday, "advising that they were engaging their unions in discussions about improving efficiency at their Freehold plant."

He said the borough responded by offering to meet to discuss ways in which the borough could be of assistance, including by engaging the resources of the state Economic Development Authority and other government resources.

The company advised the borough that it would like to allow conversations with the union to proceed before considering additional supportive measures, Gallo said Thursday.

"Mayor Kevin A. Kane and the Borough Council hope that discussions with the unions will bear fruit and that Nestlé will remain an important part of the Freehold community. Borough officials stand ready to assist in exploring ways to help keep the business in the borough," Gallo said.

Thomas A. Arnone, director of the Monmouth County Board of County Commissioners, is particularly active in promoting business in the county.

And he says the Nestlé company business is vital to the economy of the county.

"If Nestlé were to close their operations in Freehold, it would have a devastating economic impact on not only the employees who work there, but all of the surrounding businesses," he said in a response Thursday.

"The closure of such a large corporation would be a huge loss for Monmouth County and New Jersey. Hopefully the state will come in and assist Nestlé so they can stay in New Jersey, and importantly, in Monmouth County," Arnone said.