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Warren Buffett cuts the ketchup in Canada

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    Warren Buffett cuts the ketchup in Canada

    H.J. Heinz Co. will close its Leamington, Ont.,
    processing plant in June 2014, costing 740 people
    their jobs, the company announced Thursday.

    It broke the news to its employees at a meeting in
    the cafeteria.

    Leamington Mayor John Paterson called the news
    "a great disappointment." The plant, which is
    more than 100 years old, is Leamington's largest
    employer.

    "This is a day we hoped would never come,"
    Paterson said. "We deeply regret this news."

    John Skocza has worked at Heinz in Leamington
    since 1978. 

    "I’d like to thank Warren Buffet for doing this to
    Canada. He just crushed us," Skocza said on the
    way out of the meeting.

    Buffett's Berkshire Hathaway and its partner on
    the deal – 3G Capital — bought Heinz for $28
    billion US in February.

    Heinz closed three plants in North America on
    Thursday, including Florence, SC (200
    employees); Pocatello, ID (410 employees); and,
    Leamington, ON in Canada (740 employees).

    In a statement, Heinz said it came to its decision
    "after an extensive review of our company’s North
    American supply chain footprint, capabilities, and
    capacity utilization."

    "We reached this decision after thoroughly
    exploring extensive alternatives and options. 
    Heinz fully appreciates and regrets the impact our
    decision will have on employees and the
    communities in which these factories are located,"
    Michael Mullen, senior vice president of corporate
    and government affairs, said in a news release.
    "We appreciate the many contributions these
    employees have made to Heinz and we are
    committed to treating all employees with the
    utmost respect and dignity."

    Heinz plans to offer severance benefits,
    outplacement services and other support to help
    affected employees pursue new job opportunities.

    "Heinz intends to be generous to its employees,"
    Paterson said.

    Ken Hamm grows tomatoes for the Heinz plant in
    Leamington. He said close to 40 per cent of all
    field tomatoes grown in Ontario are shipped to
    Leamington.

    He said on average, Heinz would use 225,000
    tons of tomatoes annually, at $93-$95 a ton.

    “You do the math, that’s a lot of money,” he said.

    He said the plant’s closure means he no longer
    has a buyer. He’ll have to stop growing field
    tomatoes and start growing soy beans, corn or
    wheat.

    He said the cost of the change is “very
    substantial” because he has to buy new farm
    equipment that differs from that used for growing
    and harvesting tomatoes.

    Hamm said his 82-year-old father has been
    growing tomatoes for Heinz all his life.

    CBC News asked Premier Kathleen Wynne, who
    is also the Minister of Agriculture, for comment but
    did not receive a response.

    In early October, Wynne called on the province's
    agriculture sector to double its growth by 2020.

    In addition to its 740 full-time workers, the
    Leamington plant employs an additional number
    of seasonal workers each year.

    In August, H.J. Heinz Co. eliminated 600 office
    jobs across the U.S. and in Canada, including 350
    in Pittsburgh, nearly a third of its operation there.

    In Leamington, the Heinz operation is one of the
    biggest taxpayers and water users in the
    municipality.
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