Diageo deal signed with union as closure comes closer
- Ron Giofu
- 17 minutes ago
- 3 min read
A ratification vote was held on the weekend to approve a deal between Diageo and Unifor Local 200, with the agreement putting the closure one step closer to happening.
Unifor Local 200 president John D’Agnolo said the agreement was, in part, to approve new language in the contract but also to secure packages for staff still in the St. Arnaud St. plant once the plant closes in February.
The current contract has now expired, and D’Agnolo said the union had to do what it could under the circumstances to get as much as possible for the over 160 workers at the plant.
“We were under pressure to get something before the contract was done,” he said.
Had no deal have been reached, Diageo would have only been legally responsible to pay out the minimums under government legislation. While not satisfied with the deal because it means the plant is closing, D’Agnolo said they got as much as they could for the unionized workforce.
“I had hopes to keep the plant open,” he said. “So did the workers.”
D’Agnolo admitted it was hard signing the agreement, but the union will do what it can going forward to support the workers. He called on all three levels of government to join in, noting part of the agreement will assist workers in resume writing, job searches and gaining other skills to find employment elsewhere.
“Some people have left already,” he added, as he is aware of workers going to Stellantis, Ford and other workplaces.
“It’s the right decision because the plant did close,” he said.
There is still hope that another company could come in, buy the plant and keep workers employed. D’Agnolo said he would welcome such a scenario.
“I would be happy if someone came in there,” he said.
Governments and other partners should focus on making something happen at that site.
D’Agnolo said everyone’s exit package will be different as they are based on seniority. He emphasized the union will “focus on doing what we can,” and support the workers for the long-term.
“Nothing is worse than now knowing what your future holds,” he said.
Mayor Michael Prue said “we knew this day was coming,” adding he has had discussions with union officials as the process unfolded. He hopes to speak with Premier Doug Ford soon about what the province can do to help get another company to come to Amherstburg.
“I know the ball is really in the province’s court,” said Prue. “We will support them in any way possible to help keep the 168 jobs in Amherstburg.”
Prue added several companies are “eyeing the property,” adding the company he spoke of several weeks ago remains interested. Talks are still ongoing with that beverage company, adding that company is working to overcome “hurdles” in order to try and move into town.
Ford has stated the province will pull Diageo products from LCBO shelves once the last worker leaves the plant, and Prue hopes there is a “seamless transition” from one company to the next. One of the keys to that happening is Diageo’s desire to sell the property.
“Diageo is a worldwide company,” he said. “They can sell or not sell the property. If they sell, it will speed up the process of keeping jobs in Amherstburg.”
In its initial announcement last August, the company said closing the Amherstburg plant next February is part “of an ongoing commitment to increase efficiency and resiliency of its manufacturing footprint.”
Diageo added it will maintain operations in Gimli, Manitoba and Valleyfield, Quebec as well as their Canadian headquarters and warehouse operations in the Greater Toronto Area.
Diageo said the current trade climate with the United States did not play into its decision.
“Through this process, the company will unlock additional productivity and increase resiliency and capacity to scale, effectively meeting demand across its markets and shifting some bottling volume to be closer to its many U.S. Crown Royal consumers. These changes are consistent with the strategic priorities in Diageo’s global Accelerate program, which sets out clear cash delivery targets and a disciplined approach to operational excellence and cost efficiency for the company,” the company stated in its August announcement.
Diageo deal signed with union as closure comes closer
By Ron Giofu