Unionized workers at a Crown Royal whisky plant in southwestern Ontario expressed shock on Wednesday upon learning that operations would cease immediately, two days prior to the facility's planned closure. The Amherstburg, Ontario plant's shutdown was initially scheduled for February 27, as announced by Diageo, the spirits maker, which intends to relocate production to the United States. This decision will impact around 200 unionized members at the site.
Unifor Local 200 President John D’Agnolo criticized Diageo for the sudden announcement, suggesting that the company wanted to avoid scrutiny on the final day of operations. "It's clear Diageo didn't want to face the scrutiny that would have come on the final day of operations," D’Agnolo stated. He expressed disappointment over Diageo's decision to move production of a prominent Canadian whisky out of the country, denouncing the company’s choice to abandon its loyal workforce.
Workers were informed that Wednesday would be their last day at work, although they will receive compensation for the two days they will not be working. Unifor National President Lana Payne condemned the abrupt closure, labeling it an unacceptable conclusion to the employees' service at the plant. "This is a final show of disrespect for Canadian workers as Diageo moves their jobs south of the border to appease Donald Trump," said Payne. She described the day as a bleak one for both the affected workers and the local community, which has a long-standing tradition of whisky production spanning a century.
Ontario Premier Doug Ford previously threatened to remove Crown Royal from the shelves of the provincial liquor control stores in response to Diageo's decision to close the plant. However, a recent agreement between the province and Diageo, reached two weeks prior to the closure announcement, will see Diageo invest approximately $23 million to support local producers. The agreement aims to "create new opportunities for Ontario farmers, manufacturers, and communities across Ontario."
The investments under the agreement include $11 million earmarked for the purchase of grain neutral spirits produced in Johnstown, $3 million dedicated to ready-to-drink beverages through a Toronto-based co-packer, and $5 million set aside for marketing and promotional activities. This partnership signifies a commitment to local economic development despite the impending closure of the whisky plant.
As of now, there has been no immediate response from the Ford government regarding Diageo’s decision to expedite the plant's closure. The situation highlights ongoing tensions between corporate interests and labor rights in the context of job migration and local economic impacts.
