FiercePharma is now amplifying the themes in a story I wrote about over a week ago -- on the reacquisition of the Cherokee Pharma Riverside API facility. This bit below is slightly mis-stated, though -- all New Merck has actually said is that it will keep the union workers employed while it decides what to do with the plant it sold only two-and-a-half years ago, now -- do go read it all:
. . . .That makes it all the more puzzling how Merck will keep on the payroll all 454 Riverside workers, as it says it will. But it's a good thing, especially for those at mid-career and beyond. . . .
On average, each member of the unionized Riverside workforce has 16 years of experience and seniority (read as: expensive). So, I think it likely that Merck will ultimately slowly stage this ingredient production to another non-union facility, drastically cut-back on the union workers' benefits (as these USW members are presently working without a contract), or both. There is not a whole lot else -- in my experience -- that would be gained from ending this previously "out-sourced"" way of meeting Merck's diverse-owned supplier spend initiatives. It must mean New Merck doesn't intend to fill these supplies from a historically-disadvantaged or diverse source any longer, and the likely reason it would do that would be if it were ultimately going to source them elsewhere (internally), in my opinion.
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