Meat Industry INSIGHTS Newsletter

980274 Maple Leaf Foods Threaten to Shut Plant

February 27, 1998

Toronto - Canadian hog processor Maple Leaf Foods Inc said it will shut down its Burlington, Ont.-based plant if the union does not accept its latest offer.

Yesterday the meat processor applied for a government-sponsored vote on its final offer to employees at the Burlington pork production facility. The vote is set for March 6 at a local hotel.

If employees reject the latest and final offer, the facility will be closed on March 20, said Pat Jones, executive vice-president of Maple Leaf Meats.

Management's final offer includes a new wage scale of between C$10 to C$21, a guaranteed work week, an improved pension plan and a substantial buyout package of up to $33,000 per person.

Employees are guaranteed the buyout money within 15 days of voting whether they ratify or not.

Under the old contract, employees earned an average wage of C$25.08 including benefits, with the least skilled person earning C$16.58.

Jones said if the new offer is accepted Maple Leaf plans to invest C$30 million in plant upgrades ensuring a second shift and the creation of 600 new jobs.

The 900 Burlington employees have been on strike since November 15 after management offered a buyout to current employees and lower wages to new employees.

If terminated, it would be the second plant to be shut by Maple Leaf. In late November 850 employees at the Edmonton facility went on strike in a show of solidarity after their contract expired. Maple Leaf later shut down the plant.

This Article Compliments of...

Iotron Technology Inc.

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