GUELPH, Ontario – Cargill announced plans to outsource transportation needs at the company’s Guelph, Ontario, beef processing facility by February 2013.
Cargill already has found a third-party carrier for its future transportation needs. The change will not affect the company’s High River, Alberta, beef processing facility.
“The Eastern Canadian retail sector continues to be one of the most competitive in North America, and we at Cargill have an obligation to deliver service to our customers in the most economical manner possible,” said Matt Gibney, general manager, Cargill Meat Solutions. “Continuing to operate our own transportation business was making it difficult for us to serve our customers as efficiently as we should. It’s not part of our core business, which involves producing safe, nutritious, affordable beef products for Canadian consumers and international customers.”
The company said it would work closely with the United Food and Commercial Workers union (UFCW) throughout the transition process. The move will impact 50 union and salaried employees, the company said.
“Decisions like this one are always difficult to make when they involve loyal, dedicated people, so all aspects were carefully considered,” Gibney said. “We truly appreciate the contributions that everyone who will be impacted has made, and we will be taking the necessary measures to ensure that every impacted employee will have access to career transition services as well as appropriate severance packages.”