Oreo boycott facts for kids
The Oreo Boycott (also called the Nabisco Boycott or Mondelez Boycott) was a time when many people decided to stop buying Oreo cookies and other snacks made by Nabisco, like Chips Ahoy! and Cheese Nips. This happened because the company, Mondelez, decided to close its factories in the United States and move the work to Mexico. A boycott is when people refuse to buy, use, or participate in something as a way to protest.
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Why the Boycott Started
This boycott began because the company that owns Oreo, called Mondelez International, decided to move some of its cookie and snack production. In 2015, Mondelez announced they would close factories in Chicago and Philadelphia. They planned to move this work to Salinas, Mexico.
Money and Decisions
In 2014, Mondelez made over $34 billion in sales. The CEO, Irene Rosenfeld, earned $21 million a year. Some people believe that a very rich investor named Bill Ackman pushed Mondelez to cut costs. He owned a large part of the company.
Factory Closures and Job Losses
Mondelez decided not to spend $120 million to update their Chicago factory. Instead, they announced that about half of the 1,200 workers there would lose their jobs. Earlier in 2015, Mondelez also closed a factory in Philadelphia. This factory had been open for 60 years. About 350 employees lost their jobs there.
Talking with Workers
Before moving production, Mondelez talked with the worker's unions. A union is a group that protects workers' rights. Mondelez asked the unions to agree to lower pay. This would help make up the $46 million difference in costs between making products in the U.S. and Mexico. Mondelez said the unions' demands could not be met.
Important Factories
The Chicago factory opened in the 1950s. It used to be the biggest bakery in the United States. At its busiest, it employed over 4,000 workers. This factory was very important to Mondelez. It had a special workforce and a good location in the middle of the country.
The Boycott Begins
Elected officials and union activists announced the boycott. They wanted people to stop buying Oreo products.
Public Support for the Boycott
On July 9, 2015, Congressman Brendan Boyle announced his support for the boycott. He showed a poster of an Oreo cookie with a red circle and line through it. The poster said, "Say no to Oreo." He talked about the American jobs that were being lost. He also mentioned the CEO's pay increase.
In Chicago, activist Marilyn Katz encouraged people to stop buying Oreos. Other activists suggested buying similar cookies from stores like Trader Joe's or from the brand Hydrox instead. Some people also talked about the importance of workers around the world supporting each other.
Famous Voices Join In
In August 2015, Donald Trump, who was running for president, supported the boycott. He said he was disappointed because Mondelez was an "American company." He promised he would never eat another Oreo. The cookie brand Hydrox used this chance to help their own sales. They started printing an American flag on their packaging.
In 2016, after production began in Mexico, the AFL-CIO encouraged the boycott. The AFL-CIO is a large group of labor unions. They shared information to help people know which Mondelez products were made in Mexico.
Protests Against the Company
Protests during the boycott specifically targeted Mondelez CEO Irene Rosenfeld. As workers received notices that they would lose their jobs, protesters gathered. The Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union led these protests. They appeared outside Rosenfeld's public events. Protesters also showed up outside her home in suburban Chicago.