A downturn in the hog market is being blamed for mass job losses this month at Red Deer’s Olymel plant.
The local pork processing plant expects to lay off 100 staff in the coming weeks, confirmed spokesperson Audrey Giboulet on Monday.
“At this time, 30 temporary layoff notices were delivered last week, and another 30 temporary layoffs are planned for this week,” said Giboulet, who is based in Quebec.
Beyond that, the future is uncertain as plant managers announced on Jan. 4 that the local facility was overstaffed by 200 people.
Depending on how the pork market evolves, some employees might get called back to their positions at the plant in the coming weeks or months, Giboulet added.
As of 2021, Olymel had 1,800 unionized workers and was one of the Red Deer’s largest employers.
Previously, the company had ramped up slaughtering and processing, reaching 10,000 hogs a day during the pandemic.
But global pork production and the processing industry have been under pressure for the past three years, “and the Olymel plant in Red Deer is no exception,” said Giboulet.
In Western Canada, this led to a reduction in hog production and the closure of hog barns in Alberta and Saskatchewan over the past year.
To minimize the impact of the employee downsizing, Olymel Red Deer has implemented an early retirement incentive program, added Giboulet. Workers who are over 60 years old or have 10 or more years of service as of Jan. 30, and who were no longer eligible for the special early retirement benefit, are now eligible.
Giboulet said four people have already signed on, and a further 20 people have expressed interest in the early retirement program and will confirm their choice this week.
Further layoffs at Olymel will depend on the success of this early retirement incentive program and the plant’s natural turnover rate. Giboulet said workers who leave their positions will not be replaced until the required number of employees is reached.
“These announcements are one-off measures designed to adapt our workforce needs to our operational requirements,” she added.
A spokesperson from the United Food and Commercial Workers Union could not be immediately reached for comment on Monday.