Letter to Graeme Hart

Letter

Today, U.S. Senator Charles E. Schumer, responding to uncertainty over the future of Canandaigua's recently sold Pactiv manufacturing facility, released a personal letter to Graeme Hart, the owner of the group which purchased Pactiv, urging him to commit to keeping in place the facility's 900 manufacturing jobs that are a crucial part of Finger Lakes' economic engine. The $4.4 billion sale of Pactiv to the Rank Group has created an atmosphere of uncertainty at the manufacturing plant as workers wonder whether their jobs will be maintained for the long term. In his letter, Schumer called on the Mr. Hart to provide the facility's workers, whose stellar production has led to record profits for the company, with the security of knowing that their jobs will be kept in place for the long term.

While the new owner does not plan any short term changes according to published reports, local officials have been given no assurance that the plant will be kept open and in the same location for the long run. Today, Schumer seeks to secure that assurance.

"The jobs at Pactiv are good-paying, family-sustaining jobs that are the lifeblood of Canandaigua and the surrounding region," Schumer said. "The world-class and extremely productive workers in Canandaigua have produced record profits for Pactiv and should have the peace of mind of knowing that their jobs are secure. The purchase by the Rank group -- a company with a good reputation - provides an exciting opportunity to potentially see expansion and growth, but first there needs to be a commitment to keeping the current employment levels."

Recently, Pactiv, one of the country's leaders in food service packaging, was purchased by a private New Zealand investment company called the Rank Group. Under the new ownership structure, Pactiv will become part of Rank's Reynolds Group Holdings subsidiary, which makes food and beverage packaging and storage products, including Reynold's Wrap aluminum foil. The $4.4 billion purchase comes as Pactiv has produced record profits over the last few years with positive sales in excess of $3 billion, a boom which doubled the company's earning share. The transition in ownership has created an atmosphere of uncertainly for the roughly 900 Pactiv workers at the Canandaigua facility. Schumer's letter to Mr. Hart takes note of the crucial role that Canandaigua workers played in helping the company become so profitable over the last few years and urged him to maintain those jobs.

Pactiv's growth and stability are directly attributed to the world class manufacturing workforce of Upstate New York. There are roughly 900 employees at the Pactiv manufacturing facility in Canandaigua. If the Rank Group continues its investment in Canandaigua, this acquisition will prove to be a win-win for both Rank group and the proud workers of Pactiv in Canandaigua.

Pactiva is the county's second largest employer. Schumer said that he wants to prevent a situation like the one that occurred in Rochester several years ago when Champion garment workshops were relocated after being bought by Sara Lee Corporation.

Schumer's full letter to Mr. Hart can be seen below:

Dear Mr. Hart:

As New York's senior U.S. Senator, I welcome you to upstate New York and urge you to maintain the roughly 900 hard-working employees that have made Pactiv Corporation's manufacturing faculty in Canandaigua, New York such an attractive asset to the Rank Group. This region has long been a leader in manufacturing, which is due in large part to its highly skilled workforce. I encourage you to commit to preserving Pactiv's workforce and encourage you to view this transaction as an exciting opportunity for further investment and growth in a promising region.

Pactiv has posted positive sales in excess of $3 billion for three consecutive years, and has nearly doubled its earnings per share over that time. It has derived more than 80 percent of its sales from market sectors where it holds the number 1 or number 2 market-share position. I am confident that the company's growth and stability motivated your acquisition of Pactiv. I am equally confident that, with continued investment in Canandaigua's manufacturing facility, Pactiv will maintain its standing as a leader in the consumer and foodservice packaging market.

Pactiv's growth and stability are directly attributed to the world class manufacturing workforce of Upstate NY. There are over 900 employees at the Pactiv manufacturing facility in Canandaigua who have worked hard to contribute to a profitable enterprise. I believe that, if the Rank Group continues its investment in Canandaigua, this acquisition will prove to be a win-win for both Rank group and the proud workers of Pactiv in Canandaigua.

I am proud of our workforce in Upstate New York and I know they will continue to contribute positively to both the economy of the region, and to the bottom line of companies like the Rank Group. If you have any questions please do not hesitate to contact me directly, and I look forward to hearing from you.

Charles E. Schumer

United States Senator

Source