More Cavendish Farms shutdowns possible
Last Updated: Friday, November 6, 2009 | 7:36 PM AT
CBC News
Temporary shutdowns at Cavendish Farms could continue into the new year, according to a company spokeswoman.
The Irving-owned company, the largest private employer in P.E.I., announced Thursday it was planning to stop processing for one week in November and again for about 10 days in December because of the downturn in the U.S. economy.
But scheduled downtimes may have to be extended beyond that, spokeswoman Mary Keith said Friday.
"If we don't see a change in the current economic situation, we are forecasting one week of downtime for every two months worked at the plant," she said.
Conservative industry critic Mike Currie is worried about the impact this will have on the plant workers and growers.
'It's certainly going to hurt our economy and we don't need it to hurt any more than it is today.'—Industry critic Mike Curry
Cavendish, one of the largest processors of frozen potato products in the world, employs about 800 people. That does not include the growers, who have contracts with the company.
"It's certainly going to hurt our economy and we don't need it to hurt any more than it is today, but this will be a major blow to the potato industry," Currie said.
"I just hope they can work their way out of it, but markets will have to improve."
Help for employees
Innovation Minister Allan Campbell says his department is looking for ways to help Cavendish workers and growers. (CBC)Innovation Minister Allan Campbell said he was taken by surprise by the Cavendish Farm announcement, but his department is looking for ways to help the workers and growers.
"Certainly I guess what we're talking about is maybe 30 to 35 days of shutdown over the next six months and we hope that won't have too big of an impact on the producers, but we'll continue to work on that," he said.
As it stands, Cavendish plans to shut down its two processing plants in New Annan and a third in North Dakota between Nov. 20 and Nov. 27, and again between Dec. 23 and Jan. 2.
Most employees will be temporarily laid off during those periods, company officials have said.
Processing growers knew in the spring that Cavendish Farms' export markets were dropping, said Boyd Rose, chair of the P.E.I. Potato Marketing Board. The company cut processing contracts by an average of 15 per cent.
"This is just more uncertainty," said Rose. "From any investigation we've done, people and sales will be back to where they were by next summer, or fall, but who knows."
