Cargill's plans to cut thousands of jobs worldwide are not expected to have a major impact on union positions in Canada, according to the union that represents the majority of Canadian workers.
Minnesota-based Cargill confirmed to Global News on Monday that it plans to lay off about 5 percent of its global workforce in the coming months, which could be about 8,000 jobs at the agricultural giant.
Cargill, according to its estimates, employs about 8,000 Canadian workers in 70 cities, including major operations in Guelph, Ont., and Alberta.
Derek Johnstone, a spokesman for the United Food and Commercial Workers, told Global News on Wednesday that there is limited information about the impact of the restructuring.
But he said the union had not received notice of layoffs for front-line workers in Canada.
The UFCW represents nearly 6,000 Cargill workers in Canada, Johnstone said in an interview. He added that he expects the bulk of the layoffs will come from administrative positions rather than anything affecting production.
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Cargill operates as a commodity trader and processor of agricultural products worldwide.
Thomas Hesse, president of the UFCW Local 401 union that represents about 2,500 Cargill workers at two locations in Calgary and High River, Alta., said in a statement Tuesday that it does not appear that Albertan workers are currently affected.
“According to initial presentations from Company management, it appears that the layoff plan will not impact Cargill's Alberta operations at this time. However, we will continue to carefully monitor this situation,” he said.
Hesse added that layoffs would not be justified in Alberta's meat processing industry, given the rising beef prices in recent years.
“We will continue to fight and represent the interests of Cargill workers with all the tools and resources at our disposal to ensure that great companies like Cargill treat their workers fairly,” he said.
Most of Cargill's job cuts will take place this year, said the company's president and CEO, Brian Sikes, in a statement reviewed by Reuters on Tuesday.
“They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Sikes said in the memo.
Unlisted Cargill reported revenue of $160 billion for its 2024 fiscal year that ended in May, down from a record $177 billion a year earlier.
Cargill does not release quarterly statements, but in a memo seen by Reuters in August, it said less than one-third of businesses met their earnings targets in the last fiscal year.
“The impact on our operations and core teams will be kept to a minimum as we empower them to continue delivering for our customers,” Sikes said in a memo.
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