First, it was only two and a half years ago that Merck sold this plant to PRWT Services, operating through Cherokee Pharmaceuticals -- after Merck operated the plant for 58 years. Next, the hourly employees at Riverside are represented by the United Steel Workers, Local No. 2-580. On average, the hourly employees have 16 years of seniority on the job. In addition, Cherokee signed a deal with Merck to do contract manufacturing, through 2013 -- I have to wonder whether this was (in part) to meet diverse suplier spend goals, within Whitehouse Station. I also have to wonder, if the operation was otherwise profitable and successful, why PRWT Services would be selling it back to Merck, in under three years. Perhaps with the hourly workers working without a contract, and able to go on strike at any time, there is a perception by would-be third party pharma manufacturers that they don't really want to start sourcing active ingredients from the Riverside facility, only to have those supplies interrupted, in the event of a strike.
In any event, here is the Cherokee Pharma information available on its website -- though I caution the figures may be a little dated, now:
. . . .The plant will continue to produce APIs for Merck products through a 5-year supply agreement through January 2013, as well as begin manufacturing products for other companies. . . .
Currently the Cherokee facility has approximately 425 employees. . . .
I think it is likely that Merck intends to "rachet-back" on any union demands, by reasserting its control of this plant. We'll see.
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