Cargill’s plans to slash thousands of jobs across its global workforce are not expected to impact front-line, unionized positions in Canada, according to the union representing the bulk of the food giant’s Canadian workers.
Minnesota-based Cargill confirmed to Global News on Monday that it plans to lay off about five per cent of its global workforce in the months ahead, amounting to roughly 8,000 jobs at the agricultural giant.
Cargill, by its own estimates, employs roughly 8,000 Canadian workers across 70 cities, including major operations in Guelph, Ont., and in Alberta.
Derek Johnstone, spokesperson for the United Food and Commercial Workers, told Global News on Wednesday there is so far limited information about the impact of the restructuring.
But he said the union has received no notice of layoffs coming to front-line production workers in Canada.
UFCW represents nearly 6,000 Cargill employees in Canada, Johnstone said in an interview. He added that he expects the bulk of reductions will come from managerial positions rather than anything affecting production.
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Cargill operates as a commodity trader and processor for a swath of agricultural products around the world.
Thomas Hesse, president of the UFCW Local 401 union that represents nearly 2,500 Cargill workers at two plants in Calgary and High River, Alta., said in a statement Tuesday that it doesn’t appear Albertan workers are affected at this point.
“Based on initial representations from Company officials, it appears that the workforce reduction plan will not impact Cargill’s Alberta operations at this time. However, we will continue to monitor this situation carefully,” he said.
Hesse added that layoffs would not be justified at the pair of Alberta meat processing plants, given surging beef prices in recent years.
“We will continue fighting for and representing the best interests of Cargill workers with every tool and resource at our disposal to ensure that large corporations like Cargill treat their workers fairly,” he said.
Most of Cargill’s job reductions would take place this year, the company’s president and CEO, Brian Sikes, said in a memo reviewed by Reuters on Tuesday.
“They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Sikes said in the memo.
Unlisted Cargill reported revenue of $160 billion for its 2024 fiscal year that ended in May, down from a record $177 billion in the previous year.
Cargill does not release quarterly earnings statements, but in a memo seen by Reuters in August, it said less than one-third of its businesses met their earnings goals in the last fiscal year.
“Impacts to our operations and frontline teams will be kept to a minimum as we empower them to continue delivering for our customers,” Sikes said in the memo.
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