Toronto - Maple Leaf Foods Inc Chief Operating Officer Michael McCain said he has no idea when labor disputes at four unionized plants could end, despite plans to recognize the same union at a new plant.
"That's an ongoing dialogue and an ongoing process," McCain, referring to the disputes.
Maple Leaf made the long-awaited announcement on Tuesday that it would spend C$112 million to build a new hog kill-and-cut plant in Brandon, Manitoba.
Canada's largest food processor is the target of two strikes at its Burlington, Ontario and Edmonton, Alberta plants and has locked out workers at two other plants in North Battleford, Saskatchewan and Hamilton, Ontario.
A high level official at the United Food and Commercial Workers International Union (UFCW) said he was surprised by Maple Leaf's plan to automatically recognize the UFCW at the new plant, set to be open in mid-1999, without forcing the union to go through the organizing process.
"It just strikes me as strange in the view of the fact that we have two lockouts, two strikes and we're going ahead with the boycott, Michael McCain has decided to give us voluntary recognition," said the official, who has been involved in the labor disputes.
The UFCW has said it plans to launch a nationwide campaign to boycott Maple Leaf pork products, beginning with union participation before asking consumers to take part.
The union official declined to say whether Maple Leaf was extending an olive branch to the UFCW by asking it to represent the new workers.
At the heart of Maple Leaf's labor disputes is its quest for lower wages. It has said it needs to become more competitive with U.S. hog processors to survive.
It saw 900 Burlington workers walk out on November 15 after it offered a buyout to current employees and lower wages for new ones.
Another 850 employeees at the Edmonton facility went on strike on November 19 to show solidarity after their contract expired. But Maple Leaf has since carted away some machinery and shut the doors, saying it would be too difficult to restart the 91-year-old plant after a long closure.
Maple Leaf will hire 1,150 workers for the first shift at Brandon, with the workforce rising to 2,200 once a second shift is started.
"The question is going to be whether they're going to be good paying jobs," the union official added.
McCain did not say whether Maple Leaf will hire Edmonton workers once the strike is over. "The Brandon investment and the Edmonton (situation)...are totally separate."
McCain added that the plant, which will process 45,000 hogs per week per shift, is scheduled to be opened in July 1999 but he hopes to bring up the starting date.
The union official said no new negotiations are scheduled for any of the disputes. But Edmonton workers are hopeful that another company, from Canada or the United States, might be interested in taking over the plant.
In other news, McCain said Maple Leaf was encouraged that its takeover target, Schneider Corp, is seeking to maximize shareholder value after Schneider's board of directors turned down Maple Leaf's C$19 per share cash offer. The offer expires on December 5 by day's end.
Maple Leaf shares rose 0.10 to 16.25 in light turnover on the Toronto Stock Exchange while Schneider was untraded today but closed at 22 on Monday.
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