DHL partially displaced at Hershey distribution center in Derry Township
A change in contractors is affecting more than 100 employees of DHL Supply Chain working at The Hershey Co.'s East Coast distribution center in Derry Township.
Last week, DHL filed a layoff notice with the state under the Worker Adjustment and Retraining Notification Act. The WARN notice said 116 employees would be impacted.
The move stems from a change in contractors covering a portion of the warehouse's work.
XPO Logistics has been hired to take over co-packing operations at the facility, which involves manually hand-packing retail orders, said Hershey spokesman Jeff Beckman.
DHL will continue to operate the warehouse side of the distribution center, which is at 500 N. Lingle Ave.
XPO was selected after a request for proposals went out.
DHL spokeswoman Lynn Anderson said about 450 DHL associates will remain at the distribution center on the warehouse side. The company does not expect any layoffs as a result of this change, she said.
As was the case in York County recently - where DHL employees were let go from a Federal-Mogul facility in Manchester Township - the company said an unknown number of DHL employees could be kept on at the facility by XPO.
Other DHL employees will be offered the opportunity to transfer to other DHL-run facilities in Central Pennsylvania. The company manages multiple facilities for clients in the Carlisle and Mechanicsburg areas.
DHL said in its notice that the employee transition is expected to occur in phases over an eight-week period that will wrap up at the end of the year.