Olymel to permanently closure its Vallée-Jonction hog slaughtering and cutting plant in Beauce
by CM staff
This decision involves the layoff of 994 employees, including 911 union members and 83 managers.
ST-HYACINTHE — Olymel’s management announces the definitive closure of its hog slaughtering, cutting and deboning plant in Vallée-Jonction, in the Beauce region. The decision was necessary to stop losses in the fresh pork sector, which have amounted to more than $400 million over the past two years and are jeopardizing the entire company’s profitability.
“After carefully examining the difficult situation in the fresh pork sector and searching for the best way out of this crisis, it has become clear that closing one of Olymel’s four slaughtering, cutting and deboning plants in Quebec was inevitable. However, no executive ever takes such a decision lightly. The first thing that comes to mind is the impact on employees and their families, on suppliers, including Beauce pork producers, and on the entire community in which the plant has operated for many years. Olymel management’s decision to close the Vallée-Jonction plant was not region-based. It was the result of a careful analysis that focused first and foremost on the operational capabilities of each of the four slaughtering, cutting and deboning plants owned by Olymel in Quebec. Closing a plant was necessary to reduce our slaughter capacity and review our business model in order to optimize it, and our analysis ultimately revealed the limitations of the Vallée-Jonction plant, given the steady decline in the available workforce and the condition of the facilities, which would require investing tens of millions of dollars in renovations,” said Yanick Gervais, President and CEO of Olymel.
This decision involves the layoff of 994 employees, including 911 union members (CSN) and 83 managers. Employees were informed of this decision during meetings held at the plant and will also receive a personalized letter.
Given the nature of the Vallée-Jonction plant’s activities, and in order to facilitate the processing of the remaining hogs and thus meet producer demand in Beauce and other regions, the facility’s closure should take place over a period of more than eight months. As a first step, the evening shift involving 443 production employees will be abolished in mid-September. The day shift, which consists of 468 other production employees, should continue depending on supply and labour availability until the plant ceases operations completely on December 22, 2023. The number of weeks of notice given to complete the layoff of employees will exceed the requirements of the Quebec Act respecting labour standards.
“On behalf of our owners and all my colleagues on the Olymel executive team, I would like to express our deep gratitude to all Vallée-Jonction plant employees from all departments who, since 1991, have worked to keep the plant running smoothly and make our products stand out. I would also like to thank the plant’s suppliers, the local authorities and the entire Vallée-Jonction community, who have consistently supported the company for more than 30 years,” said Gervais.
Olymel’s management has not yet made any decision as to the Vallée-Jonction plant’s future. The company will take the time needed to assess all of its options and to consider any proposals from interested parties.
