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Crown Metal Packaging Canada will close a plant in Chatham, Ontario, in October this year. The company produces sustainable inks for the beverage sector and sanitary cans for the food industry at the site.

Before being taken up by Crown Cork & Seal Canada in 2003, Crown Metal Packaging was formerly known as Star-Kist Company.

FoodProductionDaily, an online news portal, contacted Crown Metal Packaging Canada, which works as a secondary of Crown Holdings, regarding confirmation on the shutdown and is awaiting their comment. The regional newspaper reportedly received a duplicate of a letter sent to employees regarding the shutdown from Gordon Bell, Regional Manager, Manufacturing, Crown Holdings.

Will the Closure of Crown Metal Packaging Have an Impact on the Industry?

Gordon’s letter said that plant 257 will stop production by October 2 due to changes in its customer support. It also stated that Crown Holdings will immediately start the process of working with each employee and for those covered by their union representatives or collective agreements, to find methods to minimize the negative impact of this shutdown on them.

Gorden Bell reportedly quoted changes in consumer base, growing competition and decreasing volume as the main reasons behind the decision. With the shutdown of this manufacturing plant in Chatham, the company will shift the premises into a warehouse space will minimal man power at work.

Interestingly, the company has been going through a tough period in the recent months. Workers at Crown Metal Packaging in Toronto finished a dissatisfactory 22 months’ long strike in July this year. This plant makes canisters for more than 120 types of beer including Labatt, Molson and Coors. According to the Star regional newspaper, the workers here haven’t been given a pay raise over the last nine years.

Contract negotiations with the agitated workers broke down when the US firm tried to implement a two-tiered pay scale that would wages of new employees 42% less than their existing counterparts. The company also proposed stopping its annual cost-of-living remuneration increase.

Crown Metal Packaging subsequently sought to cut benefit entitlements and pensions. It also wanted to extend pay cut to all its employees, irrespective of their seniority.

According to Lawrence Hey, lead negotiator of United Steelworker in the dispute, they are happy that the strike’s over but simultaneously, they’re not so happy with the terms and conditions offered.

It is still unknown if actions at the Toronto plant are connected to Crown Metal Packaging’s decision to close its Chatham plant. To read more about the company and the commercial mortgages included here search for the corporate site