“Olymel’s Vallée-Jonction Plant Closure: Delayed Announcement Causes Controversy”

2023-04-23 03:23:15

In the last few days, the workers received a letter confirming the end of activities at the plant, the largest in Beauce with more than 1,000 employees. It was not the content that caught the eye, but rather a sticker from the Purolator company that distributed the missives to employees.

If the letter is dated April 14, the label containing the address of the recipients was produced on March 24, several days before the announcement of the closure which caused amazement in the Beauce municipality.

Letters and envelopes had been ready for weeks and they said nothing. They disrespected uslamented one of the factory workers who wished to remain anonymous.

On the left, you can see the production date of this sticker found on the envelopes intended for Olymel workers.

Photo : Anonyme

Questioned by Radio-Canada, Olymel confirmed that the decision to close its Vallée-Jonction facilities was approved on March 22 by the company’s board of directors.

It is quite normal that a period of time is necessary between the green light of the board of directors and an announcement of such importance.company spokesman Richard Vigneault said in an email.

During this period of more than three weeks, Olymel says it has done everything possible to prepare the announcement by considering all aspects of the file, human resources, the collective agreement, logistics and the regulatory aspect.

We had to make sure that we might mobilize our staff and our management teams to prepare this announcement in a confidential manner.continued Mr. Vigneault.

However, he asserts that under no circumstances might Olymel have made the announcement on March 24.

April, which is the day of the announcement”,”text”:”Purolator addresses are part of the day-to-day management of exchanges in a company. All dismissal notice letters, without exception, were sent on April 14, the day of the announcement””>Purolator addresses are part of the day-to-day management of business transactions. All layoff notice letters, without exception, were sent on April 14, the day of the announcementdid he declare.

Olymel also maintains that the closure of the plant was a central element of the renewal of the hog marketing agreement announced this week.

In the wake of the shutdown, Vallée-Jonction plant manager Alexandre Dionne said he learned of the news just a day before the April 14 announcement. Some media had confirmed the information the day before.

They are worse than I thoughtsays the union

The union of Olymel workers denounces the employer’s decision to have waited so long.

They kept the world in the dark all these weeks. The management in Saint-Hyacinthe is even worse than I thoughtrailed Martin Maurice, president of the union.

We are talking with potential buyers right now. If we had known in March, we might have started our discussions and avoided these cutshe continued in an interview with Radio-Canada.

The union maintains that it had never envisaged the closure of Vallée-Jonction, the flagship d’Olymel.

Martin Maurice in front of the Olymel plant.

Martin Maurice, president of the union of Olymel workers in Vallée-Jonction

Photo : Radio-Canada

We had no idea we were going to close. By all the numbers we had seen, we were the best, the most profitable. Other factories are losing a lot of money. That’s why we never considered closingassure M. Maurice.

Olymel maintains that the aging Vallée-Jonction facilities require investments of $40 million.

Yes, there were rumours, but we really thought that it would be another factory that would close, that of Yamachiche, for exampleassure M. Maurice.

Experts wonder

According to Hanen Khemakhem, professor in the Department of Accounting Sciences at UQAM and co-holder of the Desjardins Guy-Bernier Cooperation Chair, the delay was abnormally long.

Obviously it’s not a listed company that’s very susceptible to leaks, but that’s not optimal as a decision. […] Especially when there are rumors, it does not help the organizationshe pointed out.

All the more so, according to her, since the decision was probably matured for a long time and seemed unequivocal.

The decision seems final to me, there is no turning back, no maybe. The closure was approved by the board of directors, but it is likely that the analyzes that led to this were done months in advance.

For Dominic Martin, professor in the Department of Organization and Human Resources at UQAM, questions arise regarding corporate strategy.

If we say publicly that we are concerned regarding the impact on workers, this must also be reflected in the decisions and management of company communications. If there is a long delay that cannot be explained, that may not reflect the concerns we say we have. Boots don’t follow your lipshe observes.

Louis Hébert, professor of strategy at HEC Montréal, believes on the contrary that it is not uncommon to see a delay of a few weeks when important decisions are made.

That a company offloads a historical factory like that… it’s not a decision that we take lightly. And we don’t want to take its implementation lightlyhe believes.

The CAQ government also claims to have been made aware of the situation only at the time of the official announcement.

When there are rumors going around, there is always a bottom […] Of course, I was hoping that we weren’t the target, because we have a very large concentration of pigs.assured the CAQ MP for Beauce-Nord, Luc Provençal, this week.

The Ministry of Employment and Social Solidarity received a notice of collective dismissal from the company Olymel on April 14, 2023. Since then, it says it has been working to help employees reclassify.

The Minister of Employment and Social Solidarity, Katéri Champagne Jourdain, participated in meetings to this end in Vallée-Jonction this week.

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