(rdnewsNOW file photo)

By Josh Hall | @Vancan19

downturn in hog production

Olymel temporarily laying off up to 100 people at Red Deer pork plant

Jan 18, 2024 | 5:08 PM

Global pressure on pork production and processing, and in turn a downturn in hog production across western Canada, is causing Olymel to lay off 100 workers at its Red Deer plant, a company spokesperson confirms.

The company says that on Jan. 4, the plant announced an overstaffing of around 200 people, and all employees were informed that the temporary layoffs were to come.

To date, says Audrey Giboulet, 30 temporary layoff notices have been issued, and another 30 are planned for this week.

“To minimize the impact of this change, Olymel Red Deer has implemented a unique early retirement incentive program. Employees over 60 with 10 or more years of service (as of January 30, 2024) who are no longer eligible for the special early retirement benefit are eligible for this program. Four people have already signed a contract to benefit from this program, and a further 20 people have expressed an interest in taking part, and will be meeting this week to confirm their choice,” says Giboulet.

“We are also looking at other mitigation options that could help reduce the number of temporary layoffs.”

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UFCW Local 401, which represents around 1,600 workers at the site, is calling on the province to step in.

“Workers are facing unprecedented challenges due to the global affordability crisis. No one wants to contemplate unemployment for any amount of time on top of that,” says UFCW Local 401 President Thomas Hesse, noting the affordability crisis and a sharp uptick in food bank usage.

“While we understand that Olymel expects these adjustments will be temporary and remains confident about the future viability of the plant, our union believes it is time for the provincial government to step up and provide tangible relief for food workers and their families.”

A company spokesperson says there’s precedent for this, though not so much from the province, he admits. He points to the federal government providing businesses support during the COVID-19 pandemic.

A statement given to rdnewsNOW on Thursday from Alberta Jobs, Economy and Trade says Alberta’s government recognizes it is challenging every time hard-working Albertans lose their jobs.

“Affected workers are encouraged to access programs and services that will help them get back to work,” says Trent Bancarz Ministry Communications Advisor, asked if the province will heed the union’s calls to intervene.

“These programs and services include income support, emotional support, coping with job loss and help finding new employment. They can be found at https://www.alberta.ca/employment-services-layoffs.aspx.”

Giboulet says Olymel continues to assess the situation, and that adjustments will be made as necessary in the coming weeks depending on the success of the unique early retirement incentive and the plant’s natural turnover rate.

“For the time being, we believe that 100 temporary layoffs should alleviate the situation. Depending on how the situation develops, employees could be recalled to their positions at the plant in the coming weeks or months,” she says.

“Please note that these announcements are one-off measures designed to adapt our workforce needs to our operational requirements, in a specific context.”

Red Deer’s Olymel plant is located in north Red Deer at 77 Street and Riverside Drive.