060137 Olymel Closing Quebec Pork PlantJanuary 27, 2006Montreal - Meat processor Olymel LP announced it is shutting down pork cutting operations at its plant in St-Simon, Que., eliminating another 520 jobs as part of a company-wide restructuring in the province. The company said it is realigning its operations to become more competitive, creating about 200 positions at Quebec one plant while it trims several hundred personnel at others. The overhaul will result in expansion at some plants with investments totalling about $24 million. There will be layoffs at the plant, southeast of Montreal, but some jobs will be relocated as well. "Our business must adapt itself to the particularly difficult market conditions in the pork industry in Quebec," said CEO Rejean Nadeau said in a statement. However, company spokesman Richard Vigneault said Friday there shouldn't be any more restructuring "in the foreseeable future." The Quebec-based company has been hurt by the strong Canadian dollar, international competition and a moratorium on pork production in Quebec that was recently lifted. It also noted its high costs of operations and wages in Quebec. The union representing workers at the St-Simon plant was angered by the news. The Confederation of National Trade Unions accused Olymel of closing Quebec plants and making its workers give concessions to take its business elsewhere. "Olymel, by it's announcement today, is showing that it means to use all methods at its disposal to pay for its expansion projects in Western Canada at the expense of Quebec workers," the union said in a statement. Olymel, along with hog producers, Hytek in Manitoba and Big Sky Farms in Saskatchewan, have received city approval to build a new factory in Winnipeg expected to employ 1,100 people. Olymel, whose operations are concentrated mainly in the pork and poultry sectors, said it is "pursuing a restructuring to ensure its long-term growth in an industry undergoing profound changes." About 125 workers at the St-Simon plant are already slated to lose their jobs in February and its 520 workers will lose their jobs next September. The company has also cut jobs at others three other plants in rural Quebec. Workers at a company plant in Saint-Hyacinthe recently accepted a wage cut last year to prevent Olymel from closing that operation. Olymel has slaughtering, processing and distribution facilities in Quebec, Ontario and Alberta and employs more than 10,000 people. Nearly half of its sales are exported, mainly to the U.S., Japan and Australia.
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