Jabil

Is Jabil the wave of the future for J&J Manufacturing? Will J&J eventually outsource all manufacturing sites and just manage the remainder of the supply chain? The EHSS numbers should improve. MD put a nice positive spin on the current deal.

 

It certainly could be. Logically speaking product costs almost have to increase. Jabil is no doubt going to expect a nice margin on the products. Since everything JNJ does involves reducing costs I can only guess leadership thinks there will be substantial savings in product liability, legal, regulatory. It could work, but there is huge potential for this thing to blow up in our faces.

 

Look at the list of facilities sold to Jabil, they're all Synthes & EES Endomechanical sites. JNJ is divesting Synthes & the EES Endomechanical business. JNJ doesn't want to admit that the acquisition of Synthes was a mistake, so to save face all the Synthes facilities are being sold to Jabil. Once Jabil owns the Synthes facilities, JNJ will start rationalizing all the Synthes product codes, thus completing the death of Synthes. The EES Endomechanical business was struggling because it's become a low-margin commodity business, which JNJ wants to exit. Instead of selling the business to private equity or to a competitor, killing the business by giving it to Jabil & rationalizing the product codes is how JNJ plans on dumping it. Jabil is an expert when it comes to layoffs, so Jabil can dispose of the 6000+ employees affected, otherwise it would be bad PR for JNJ if JNJ suddenly laid off 6000 employees .

 

When this deal is made, are existing employees allowed the option to retire as J&J or are they locked in to being sold to Jabil? I would not expect Jabil's retirement benefits equal to that of J&J. Perhaps the only safe careers are at the corporate office.

This seems to be unethical.

 

Almost no doubt whatever JNJ benefits you currently have will not carryover to Jabil. You will be working for a new company. If you're in position to retire now you may want to consider doing so. If you're not you may as well see what Jabils about unless you can transition out.

No one @ Corporate is safe, it's been a pretty crappy 6 years since JNJ acquired Synthes.

Of course it's unethical, that's what JNJ is all about.

 

Please don’t retire until after you are laid off from J&J as you will receive two weeks severance per full year of J&J service. Then, if you have at least ten full years of J&J service, you can retire from J&J at any time after you are severed, one month or 20 years later. Take the severance, take the job with Jabil, then figure out the rest later. Anyone who quits or retires before you are severed will not receive your J&J severance pay. If you are close to 10 years J&J service, do whatever possible to transfer or get back to J&J in order to qualify for the pension if it is important to you. Otherwise just take the J&J severance, work for Jabil or another company and make the best of it. Make sense?

 

Agree with the above post. When asking about the Jabil deal, the standard management response is “stay focused on your current assignment.” Not easy for the affected associates who will be dumped from J&J, especially the ones with more than five years of J&J service.

 

Im confused about the pension. My pension calculator says I would receive roughly $500.00/month starting when I'm 62 assuming I retired at the end of August. Although JNJ bought Synthes in 2012 they didn't really "start the clock" until 2014. I started at synthes in 1998. I've been assuming the 10 years service was for healthcare in retirement, but not the pension. Can anyone clarify this for me, it would be much appreciated.

 

Please actually read the documents regarding the plan, the “retiree” medical coverage is tied to you being eligible to retire, you may request a hard copy of each from OurSource. Small detail, you are eligible to retire with a full additional year of on the first day of the month after your birthday month which for you would be September 01. Also if you do not have 10 full years of J&J service per Our Source (see view service awards section, or profile) then you are not eligible to retire from J&J yet.

 

The feeling is that in order to improve profitability, Jabil will slash headcount at these sites, primarily support functions. Other option is to close sites, then consolidate production at remaining sites. As someone else mentioned, the head count reductions will not be associated with J&J, no bad PR. Wa-la.

 

Did you hear that Q-Tips cause brain cancer?

 

my estimate of severance for 6000 employees is $100mm

 

Requirements must have changed since I left a few years ago. One had to be 55 to get the medical carryover. The company will decide what to do best to their advantage and not yours.

 

Please post information from plant meetings in monument and brandywine

 

having been part of the Synthes Jennersville facility the sale to Flextronics sucked for us big time. those who had to stay for the severance were abused. and remember if JnJ sells the facility, they also sell you, they are not laying you off, the new company is. Don't expect Jabil to be nearly as generous.

 

That should be worth $400 mil...

 

If we would get a severance package why haven't they said anything about it.

 

That assumes layoffs (with severance) rather than being sold with the unit. If you become an employee of Jabil and THEY lay you off, the circumstances could be very different.

 

my understanding has always been that if your unit is sold to another company, you are technically severed from J&J at that time and would receive two weeks per year severance and if vested with 10 years of service and at least 55 years old, you can retire then or at any time after that. If you have 10 years but not 55, then you can “retire” from J&J at any time after the first day of the month after you turn 55, or any time after that. There could be conditions for the severance like how long you work for Jabil. If Jabil then at some later time lays you off, then you would then also be covered by their severance policy. That is what I have observed in the past, but I am not in HR. Can someone in HR confirm or deny this?