Union rep says ACA job cuts devastating, unexpected

BY KIRK STARRATT

kstarratt@kentvilleadvertiser.ca

NovaNewsNow.com

A representative of the Canadian Auto Workers Union says job cuts for both union employees they represent and non-union employees at ACA Co-operative Limited are devastating and were unexpected.

National Staff Representative Ken Taylor said he certainly hopes for light at the end of the tunnel. He’s trying to arrange a meeting with ACA management to see what can be done. He said he had left messages but, as of late Friday morning, couldn’t get ahold of anyone. “I really can’t say a lot until we have a meeting,” he said. “It’s devastating. People weren’t expecting this.”

ACA announced through a news release Thursday that there would be major changes at two of its Kings County facilities, including filing for creditor protection of its Eastern Protein Foods subsidiary. The changes will result in the layoff of 75 union employees at ACA and the permanent loss of 40 non-union ACA and Eastern Protein employees, as well as 187 union positions at Eastern Protein.

No one expected a closure

Taylor said employees were expecting some sort of announcement, as there were rumours that Maple Lodge would purchase ACA, but no one expected a closure. He said to lose even one employee is sad and devastating and hopefully government will step in and come up with something to see if this can be avoided. However, it doesn’t seem it can be avoided at this time.

Taylor said he couldn’t confirm it, but there is a possibility there could be another 60 job cuts in roughly a month. If so, there would be about 320 union workers cut and 40 non-union employees. He said this would result in a major impact on the rural community in the Valley, as the negative economic spinoffs would carry.

Lost $6 million in 2008

ACA Chief Executive Officer Ian Blenkharn did not return calls for comment as of the deadline for this article, but stated through the news release that Thursday was a very sad day for many of their staff and families. The past few years have been very challenging for ACA and they arrived at a point where they either had to make major changes to the way they do business or risk losing the entire operation.

ACA’s primary processing plant in New Minas lost about $6 million in 2008 and without major changes is expected to incur significant losses in 2009. Eastern Protein Foods, a subsidiary of ACA that produces further processed poultry products at a plant in the Kentville Industrial Park, has lost millions of dollars over the last several years, including losses of about $1.8 million in 2008.

The New Minas facility is changing its sales mix, ending tray pack operations. Eastern Protein will close permanently due to the longstanding losses and a lack of market opportunities.

ACA is currently in negotiations with Ontario-based Maple Lodge Farms Limited, the largest independent chicken processor in Canada, to ensure there is a long-term solution for poultry processing in Nova Scotia. Last fall, the provincial government announced a $3.5 million working capital loan for ACA.

Both layoffs and job eliminations are expected to take effect by late February or early March. Union employees at ACA’s New Minas plant who are being laid off will have a choice between accepting a layoff to maintain seniority in the event of a call back or accepting severance consistent with the terms of their collective agreement. Non-union ACA employees whose jobs are ending permanently will receive severance payments. Terms of both will be shared directly with employees over the next several days. Employees at Eastern Protein will receive compensation as determined by creditor protection procedures. “As an organization, we will do everything we can financially to help our employees,” Blenkharn stated through the news release.