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.
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.