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Blue Bell Creameries sing the blues as layoffs and pay cuts imminent

By: J. Werner
| Published 05/15/2015

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BRENHAM, Texas – As difficult as it sounds that we may have a summer without Blue Bell Ice Cream, the process of cleaning and improving Blue Bell's four production plants is going to take longer than expected according to Blue Bell, especially at the main plant in Brenham.

Litmus test at Blue Bell goes from blue to pink slips.


There is no firm timeline for when Blue Bell will begin producing ice cream again, and when production resumes, it will be limited and phased in over time, said company officials.

Unfortunately hundreds of workers will have to be laid off, and those that remain on the payroll will have a reduction in working hours and pay. Blue Bell announced that thirty-seven percent of their workforce of 3,900 employees, will lose their jobs. That's 750 full-time employees and 700 part-time workers. Another 1,400 employees will be furloughed.

This negates the statement made April 21, when Blue Bell announced that it had no plans to layoff any of its workforce. See UPDATE: Blue Bell undergoing deep cleaning and extensive retraining.

"The agonizing decision to lay off hundreds of our great workers and reduce hours and pay for others was the most difficult one I have had to make in my time as Blue Bell's CEO and President," Paul Kruse said in a written statement.

It would be hard to imagine any company in the same situation, not being forced to make the difficult decisions, and at some point in time, many industries have had to for a variety of reasons...slumping oil prices, a downturn in the economy, natural disasters, etc.

Kruse said the employee actions affect three groups:


Employees who are essential to ongoing operations and the cleaning and repair efforts will continue to work but have their pay reduced.

A second group of employees will be placed on partially-paid furlough. They will be paid a substantial portion of their current pay, with the expectation that they will return to work as production resumes.

Because there is not a clear timeline for when production will resume, and because supply and distribution will be limited when it does, a third group of employees will be laid off.

"At Blue Bell, our employees are part of our family, and we did everything we could to keep people on our payroll for as long as possible," Kruse said. "At the same time, we have an obligation to do what is necessary to bring Blue Bell back and ensure its viability in the future. This is a sad day for all of us at Blue Bell, and for me personally."

Blue Bell has also suspended operations and laid off employees at the following distribution centers: Phoenix; Tucson; Denver; Indianapolis; Kansas City; Wichita; Louisville; Albuquerque; Las Vegas; Raleigh; Charlotte; Columbia; and Richmond.

Thursday, May 14, it was announced that Blue Bell Creameries and the Texas Department of State Health Services have entered into voluntary agreements outlining a series of steps and actions that the Brenham company must complete to be able to sell ice cream again. The Texas news release and agreement can be accessed at Texas Outlines Requirements for Blue Bell.

In the meantime, Texans have been supportive of Blue Bell and have vowed to remain loyal to their brand, as evidenced by the outpouring in the social media. The We Stand With Blue Bell Creameries Facebook page is a litany of posts with prayers and words of encouragement for the little creamery in Brenham.

In the meantime, all that the loyalists can do is stand with their noses pressed against the freezer door at their neighborhood grocery store.



#WeStandWithBlueBell #WeScreamForIceCream

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