CANADA – Canadian meat processor Olymel has revealed the closure of two of its North American plants, affecting over 400 employees, as part of a strategic reorganization to optimize operations and enhance efficiency.
According to the company’s management, the necessity of these closures is aimed at streamlining the company’s operations and ensuring long-term financial sustainability.
The closure includes Olymel’s boning and packaging plant located in Princeville, Centre-du-Québec, Canada, which is set to cease operations permanently on November 10.
This closure will affect 301 employees, who have been given 16 weeks’ notice of termination. Of this notice period, eight weeks will involve continued work until the closure, while the remaining eight weeks will be compensated with a lump sum.
To mitigate the impact on affected employees, Olymel has developed a relocation plan, enabling them to transition to other Olymel facilities with labour needs.
Additionally, the Princeville plant employs 33 temporary foreign workers, and Olymel will collaborate with authorities to facilitate their relocation to other Olymel locations.
“This decision, difficult but necessary, is part of Olymel’s desire to continue our efforts to return to profitability in the sector, for the benefit of our entire organization,” Yanick Gervais, Olymel’s President and CEO, stated.
Olymel has also announced the closure of its poultry further processing plant in Paris, Ontario, Canada, on December 22.
This move is part of Olymel’s broader effort to optimize operations, enhance efficiency, and secure profitability across its facilities. This decision will affect 93 employees, who have received 14 weeks’ notice of closure.
To support impacted employees, Olymel is offering a relocation program, allowing them to continue working at other Olymel plants in the Ontario region.
Simultaneously, Olymel unveiled an investment of approximately US$5.2 million in its existing Oakville, Ontario plant, located approximately 75 kilometres from the Paris plant.
The investment will involve refurbishment work, including the installation of a production line from the Paris plant. Once completed, this project is expected to create 62 new jobs.
“Consolidating the operations of the two plants in Oakville will put an end to this situation and generate significant gains in efficiency and savings,” Gervais explained.
The restructuring in the Ontario poultry sector will positively affect Olymel’s poultry processing plant in Sainte-Rosalie, increasing production capacity for certain poultry products and potentially creating additional jobs.
Lastly, Olymel has accelerated the closure of its Saint-Simon distribution centre in Montérégie Est, closing on January 26, 2024, more than a year ahead of the initially planned date.
“Olymel will take great care to ensure that the implementation of relocation plans for Princeville, Saint-Simon, and Paris, Ontario, will enable employees affected by the closures to pursue their careers within our company according to our employment needs,” Gervais concluded,
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