Cargill announced that effective February 2013, it will be outsourcing its transportation needs at its Guelph, Ontario, beef processing facility to a third party provider. The decision was based on Cargill’s commitment to operate its business in a cost competitive manner, allowing for greater flexibility and efficiency in the marketplace.
“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.”
Cargill’s decision will impact approximately 50 union and salaried employees. The company will work closely with the United Food and Commercial Workers union (UFCW) throughout the transition process. “Decisions like this one are always difficult to make when they involve loyal, dedicated people, so all aspects were carefully considered, said Gibney. “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.”
Cargill has identified a carrier for its future transportation needs. The company’s Canadian beef processing facility in High River, Alberta, will remain unaffected by the change.
