Canada-Meat plant closure will cost 200 jobs.
CANADA-BEEF PLANT TO CLOSE COSTING 200 JOBS.
Friday, XL Foods Inc. (XL) issued layoff notices to its entire staff of approximately 200 employees from it’s Moose Jaw facility — XL Beef.
In a press release, the corporation announced that it has temporarily ceased production at the facility until this September, saying that cull and fed cattle supplies have recently diminished to the level that it is not possible to effectively operate the plant.
According to XL, the cattle shortage is unusual and is expected to abate in the coming months, allowing the facility to resume in the fall when cattle numbers will be more plentiful.
In the media release, Brian Nilsson, XL co-CEO, said that the corporation regrets taking such extreme actions and it looks forward to recalling the staff and recommencing operations on or before Sept. 28, 2009.
Ernie Penney, a 14-year employee at XL Beef, told the Times-Herald that he had been expecting something to happen at the plant.
"We started working shorter weeks recently so we knew something was going to happen. But I was not expected anything of this magnitude. This was the worst case scenario," Penney said.
The employees are entitled to between two and five days notice, as per the terms of their collective bargaining agreement. However, XL elected to pay the workers for those days in lieu of working.
Penney said with everyone at the plant now laid off, including the management team, he feels the company is losing some really great employees.
"This is a very aggressive, young, skilled labour force who (is) willing to work hard for their jobs," said Penney.
"They may not be around come the fall."
Penney is unsure if the plant will reopen in the fall and thinks that the Sept. 28 return date is more of a wish list date.
"No one knows what will happen to this industry over the next few months.
"Who knows if they will reopen the plant on that day?" said Penney, adding those employees hit the hardest will be those families where husbands and wives both work at the facility (and therefore will lose two incomes).
"These families will have to wait four to six weeks before their (employment insurance) kicks in."
Penney believes that the ripple effect from the layoffs will be major and be felt throughout the community.
"Lots of other companies will be (impacted) by the closure... Like Reverse Trucking, who hauls the cattle.
Canadian Linen, who supplies the clothes.
"Even Superior Vending, who supplies everything for the vending machines in the plant. Everything will grind to a stop."
Employees who worked at the plant on Friday were removing all consumable products and cleaning the coolers.
XL Food officials were unavailable for comment.
The mayor’s reaction to XL Beef layoffs
On Friday, Mayor Dale McBain told the Times-Herald that the layoffs at XL Beef will impact the city of Moose Jaw .
"(The layoffs) will (impact) the community and the retail sector of the city and we are concerned about that," said McBain.
McBain, who was in Saskatoon on Friday, said he learned about the closure of the plant while meeting with other Saskatchewan mayors and Premier Brad Wall for a thank you meeting for the revenue sharing initiative.
Upon hearing the news, the mayor’s thoughts went out to the plant workers.
"We have sympathy for the families (impacted) by the layoffs and are concerned about the jobs lost," said McBain.
McBain said if there was a silver lining for anyone who was laid off at the facility, it’s that there will be job opportunities available when the River Street project and multiplex construction projects begin.
He added that there is not much the city can do at this point and he will be contacting XL Foods as soon as possible.
— Dewar
A brief history of Moose Jaw closures
The closure of XL Beef is just another in long saga of major industry closures in Moose Jaw .
Before 2000, the Friendly City endured the loss of Gulf and Husky Oil, Castle Wines, Robin Hood Flour Mills, Astral Refrigeration, and Clorox, to name a few.
Closures continued into the current millennium, as well as did some openings.
Prior to it’s closure, XL Beef cancelled a shift in July 2006 and 100 employees found themselves jobless.
The pork industry in Moose Jaw also endured some twists and turns. Worldwide Pork closed its doors in May 2005 and 270 jobs were lost. It remained closed until July 2005.
Reopening under their new moniker, Moose Jaw Pork Packers, the company brought back 100 employees. It went on to close in September 2006 and 100 jobs were lost again.
Sasko Windows and Doors closed in August 2006, with 150 people losing work. Most recently, Raider Industries, which manufactured truck caps and tonneau covers, shut its doors on February 13, 2007, slashing a further 190 jobs in the city.
