New bosses to take over beleaguered beef plant in Brooks
Posted Oct 18, 2012 8:06 am.
This article is more than 5 years old.
A new management team will soon be taking over the reins at the beleaguered beef plant at the centre of a massive meat recall.
Owners of XL Foods announced late Wednesday they’ll be handing over management to a subsidiary of Brazilian-based company JBS.
The deal also gives JBS the option of purchasing the plant, plus XL facilities in Calgary and the United States within the next six months.
It’s unclear what this will mean for the plant’s 2,000 laid-off workers.
JBS Spokesman Cameron Bruett says they’re planning to send a team to Canada very soon to assess the situation.
“They’ll be coordinating and working with the team from XL to see how we’ll proceed with this one facility,” he says.
Class action lawsuits have been filed against XL Foods in five provinces; British Columbia, Alberta, Ontario, Québec and Saskatchewan.
Bruett says they knew in advance about the problems facing XL before signing the agreement.
“Unfortunately in this business at times, food safety issues can arise and we think we’re well positioned to assist in those matters,” he says.
In a release from XL Foods late Wednesday, co-CEO Brian Nilsson says “they welcome the assistance of JBS and its resources.”
The company will continue to manage its U.S. beef packing operations.
“They’re coming into manage a plant with the option to purchase and what you would hope that would be is that they actually do purchase it,” says an elated Brooks Mayor, Martin Shields. “That it isn’t just a ‘drive-by’ happening.”
Doug O’Halloran, President of the United Food and Commercial Workers local 401, says he wants more information about JBS.
“Initially I’ve heard that we have a good working relationship with them in the U.S.,” he says. “We’d been calling for new management or new ownership since this took place and on first blush we see this as a positive move.”
Chairman of the Alberta Beef Producers, Doug Sawyer says he would have preferred to see a Canadian company involved but adds its welcome news for the industry.
“This is a business arrangement between two businesses and we don’t get involved with what they need to operate their businesses,” he says.
The 800 workers who were called into work earlier this week have once again been laid-off after finishing with the beef carcasses that were inside the plant.
The Canadian Food Inspection Agency has not given any indication yet on when the plant may be able to resume full operation.
