Across Canada, food production and packaging companies are shutting down. In one significant example, H.J. Heinz Co., is closing its ketchup plant in Leamington, Ontario, among other places, causing hundreds of workers to be laid off and triggering an economic downswing in the small towns in Ontario that were built up around these factories.
In June of this year, Heinz was bought out by Warren Buffet’s Berkshire Hathaway Inc. and Brazilian hedge fund 3G Capital for $28 billion (U.S.). As a cost-cutting measure, the new owners implemented the closure of these Canadian factories and shifted more production to American companies. This is largely due to the rising costs of exports from Canada, and the ability to find cheaper labour and higher efficiency elsewhere.
While the decrease in costs boosts Heinz’s profit, the negative effects upon the small communities across Canada are devastating. The employees are “heartbroken” about the plant shutting down and their future financial situations. With few other work prospects in the area, many people are going to be contesting for the same jobs. As one woman states “we’re all going fight to serve a shake at McDonald’s”. This situation raises some ethical questions, as families are being forced to uproot their lives in order to find work again.
http://www.cbc.ca/news/canada/windsor/heinz-closes-leamington-plant-740-people-out-of-work-1.2426608