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Cargill’s plans to cut thousands of jobs across its global workforce are not expected to affect union positions in Canada, according to the union that represents the majority of the food giant’s Canadian workers.
located in Minnesota Cargill It confirmed to Global News on Monday that it plans to lay off about five percent of its global workforce in the coming months, amounting to about 8,000 jobs at the agriculture giant.
Cargill employs an estimated 8,000 Canadian workers in 70 cities, including its main operations in Guelph, Ont. and Alberta.
Derek Johnston, a spokesman for the United Food and Commercial Workers, told Global News on Wednesday that information on the impact of the restructuring is limited.
But he said the union has not received layoff notices from Manufacturing Canada workers.
The UFCW represents nearly 6,000 Cargill workers in Canada, Johnston said in an interview. He added that he expects most of the cuts to come from executive positions and not from anything that will affect production.
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Cargill is a commodity trader and processor of many agricultural commodities worldwide.
Thomas Hesse, president of UFCW Local 401, the union that represents nearly 2,500 Cargill workers at two plants in Calgary and High River, Alta., said in a statement Tuesday that it does not appear that Alberta workers will be affected at this time.
“Based on initial statements from company officials, it appears that the workforce reduction plan will not affect Cargill’s operations in Alberta at this time. However, we will continue to monitor this situation closely,” he said.
Hesse added that layoffs would not be justified at the two Alberta meat processing plants given the rising beef prices of recent years.
“We will continue to fight for the interests of Cargill workers and represent them with all the tools and resources at our disposal to ensure that large corporations like Cargill treat their workers fairly,” he said.
Most of Cargill’s job cuts will take place this year, company president and CEO Brian Six said in a note reviewed by Reuters on Tuesday.
“They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our leaders, and reducing duplication of work,” Sikes said in a memo.
Unlisted Cargill reported revenue of $160 billion for the 2024 fiscal year that ended in May, down from $177 billion a year earlier.
Cargill does not publish quarterly earnings reports, but a memo seen by Reuters in August said less than one-third of its companies met their profit targets last fiscal year.
“The impact on our operations and frontline teams will be minimized as we empower them to continue to deliver to our customers,” Sikes said in a note.
© 2024 Global News, Corus Entertainment Inc. department.
