By Amanda Brodhagen, Farms.com
Heinz Co. announced Thursday, the closure of three of its plants in North America, affecting about 1, 350 jobs.
The ketchup maker said it will close facilities in two U.S. states and its plant in Ontario, Canada. The job cuts affect 200 jobs in Florence, South Carolina; 410 jobs in Pocatello, Idaho; and the biggest hit in Leamington, Ontario with 740 jobs affected. Operations are expected to close within the next six to eight months.
A series of events are said to be contributing factors to the closures. In June of this year, Heinz was acquired by Warren Buffett’s Berkshire Hathaway hedge fund and taken private. Also, last month McDonald’s announced it was cutting its 40-year relationship with Heinz, citing recent management changes for its decision to switch ketchup suppliers. The new CEO of Heinz, Bernado Hees, was the former CEO of McDonald’s rival, Burger King.
Heinz Plant Closure Devastating for Ontario Workers, Growers
Southwestern Ontario was perhaps the hardest hit with the news. Currently, the Leamington plant is the second-largest Heniz facility worldwide. The Heinz plant is also the biggest employer in Leamington, a town of about 28,000 people.
Premier Kathleen Wynne addressed the Heinz closure and job losses in Leamington, Ont. with the following prepared statement:
"I am extremely disappointed with the decision by Heinz to close its Leamington operations. My first concern is for the workers, their families and the broader community, as well as the farmers who have faithfully supplied Heinz with quality products for over 100 years. I want the people in Leamington as well as the surrounding communities to know that I am working hard with elected officials, economic development officers as well as agricultural groups to explore opportunities for the food processing sector in that area.”
Wynne was absent when the news first broke, Thursday. Instead, Minister Eric Hoskins released a statement which focused on the hundreds of workers who lost their jobs. Hoskins points to the federal government’s decision to change container sizes, which he says has not helped the business environment.
The provincial government has deployed an ‘action team’ who are working with the various stakeholders in the area to determine future plans for the region. The representatives are from the Agriculture Development Branch, Regional Economical Development Branch and Business Development Branch. Heinz operated two other Ontario facilities in St. Mary’s and Etobicoke.
Farm Group Calls Heinz Closure a ‘Shock’ to Ontario Agriculture
The province’s largest farm lobby, the Ontario Federation of Agriculture (OFA), released a statement Friday following the news of Heniz ramping down its operations in Leamington, Ont. calling it a ‘shock’ to the agri-food sector.
More than 5,500 acres of tomatoes are grown in the region. The farm group is concerned about the timeframe given for when the plant is expected to close, by June, 2014. OFA argues that it leaves little time for growers to make alternate plans.
OFA is calling for a transition plan to help affected growers. Mark Wales, OFA president says it’s vital to develop a strategy for the Leamington region, which was once known as the tomato capitol of Canada.