It does not appear planned Cargill job cuts will impact the company’s Alberta operations, says the head of the union representing workers in the province.
Thomas Hesse, President of UFCW Local 401, the union representing almost 2,500 Cargill workers at two plants in High River and Calgary, said in a statement Tuesday that based “initial representations from company officials,” the Minnesota-based agri-food giant’s plan to pare its global workforce will spare local unionized workers.
But Hesse said the union remains cautious and continues to seek further information.
“We are in the process of asking hard questions and conducting an investigation into this situation,” Hesse said in the statement. “Based on initial representations from company officials, it appears that the workforce reduction plan will not impact Cargill’s Alberta operations at this time. However, we will continue to monitor this situation carefully.”
Earlier this week, it was reported Cargill plans to cut about 5% of its global workforce in response to declining profits amid weaker crop prices and tighter North American cattle supplies.
Cargill employs more than 8,000 people across Canada, including more than 2,000 at its High River beef processing plant which handles about 4,700 cattle per day. It is the largest beef processing facility in Canada, accounting for more than one-third of the country's domestic beef processing capacity.
Hesse said Cargill workers have a union contract, and as such, there are a variety of job protections and rules around workforce reduction to which Cargill must adhere. Additionally, principles of seniority come to bear, further protecting Cargill workers, he added.
“Let me be clear, we don’t believe any reductions are necessary,” Hesse said. “Not a shred of evidence has been provided to justify any workforce reductions. Beef sales have skyrocketed, and no one should lose their job during an unprecedented affordability crisis.”
