MONTREAL—First the chip production moved away from the old Humpty Dumpty plant in Lachine, then the cafeteria closed. On Tuesday, snack producer Old Dutch Foods announced that it is closing the 49-year-old factory in Montreal, putting 216 people out of work.
The closure came as a shock to employees and the union.
Many expected to move to a new factory in 2014. The union representing the employees at the plant was due to meet with Old Dutch on Tuesday to negotiate a new collective agreement.
The union is now left scrambling to figure out how the save the jobs.
“It’s pretty gloomy, heads are down,” said 18-year veteran Louis Disnard. “It’s a big shock to us. We were expecting to relocate early next year. Underneath that, the rumours were hanging around that the move wasn’t going to be, that maybe we’d be a warehouse with a few employees. Not this.”
According to the company, the plant and its warehouse have “reached the end of their economic life” and it would be cheaper for the American producer to ship in chips and snacks from other plants in Canada.
The factory's employees, many of whom have worked at the plant for decades, have been told that Sept. 27 will be their last day.
“I can’t do anything, I have no choice,” said 38-year employee Rose Rufinge. “I’m sad, but there is nothing I can do. I’ll try to find something else, I don’t want to stay home and do nothing.”
In Quebec City, the government also expressed surprise at the snap decision and lack of talk or negotiations. The company has a healthy balance sheet and hadn’t approached the government for help modernizing.
“We don’t like the way it was done,” said Elaine Zakaib, the minister for industrial policy. “We really think our industries need to modernize their installation, that’s why the company is closing now, they didn’t invest.”
Built in Montreal’s south west in 1964 by Humpty Dumpty, the plant has operated continuously over nearly five decades. In 2006, Old Dutch purchased Humpty Dumpty for $26.7M.
The company has no plans to renovate or build any new facilities in Quebec.
In the seven years since Humpty Dumpty changed hands, the new owners did not change the logos on the walls of the factory on Norman St.
Old Dutch will maintain plants in Winnipeg, Calgary and Fredericton.