Bakers Journal

News
Rogers Sugar to reduce workforce at Lantic refinery


September 15, 2014
By Bakers Journal

Sept. 15, 2014, Montreal – Rogers Sugar will reduce the hourly
workforce at its Montreal refinery by 59 employees through a combination
of layoffs, early retirements and voluntary departures.

Sept. 15, 2014, Montreal – Rogers Sugar will reduce the hourly
workforce at its Montreal refinery by 59 employees through a combination
of layoffs, early retirements and voluntary departures.

The Montreal
refinery is operated by Lantic, a wholly owned
subsidiary of the corporation.

"The Canadian sugar industry
operates in an open market as opposed to most other countries where the
market is protected. Lantic is one of two sugar refiners in Eastern
Canada along with many regional distributors and processors. As such,
the Canadian marketplace is very competitive. This environment, combined
with customer consolidation, is putting increased pressure on our
margins," said Ed Makin, president and CEO of Lantic, in a news release. "In order to
remain competitive in this challenging environment, we need to improve
production efficiencies. As a result, a process improvement consulting
firm was hired to review the Montreal refinery cost structure and its
manufacturing process.

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"Following their analysis and a thorough review of
our operations with our production team, we are now proceeding with a
reorganization which will have no impact on our commitment to supply
quality products and to reliably service our customers. These necessary
changes will help sustain the long term future for our Montreal
refinery, our employees and our customers. Through this difficult time,
we are working to ensure all employees are treated with respect and
given appropriate support. With this in mind, various employee programs
were put in place to provide assistance to all affected employees."

The corporation expects to incur approximately
$2 million in additional administrative costs in the fourth quarter of
fiscal 2014 for consulting fees and severance costs.

Lantic will
continue to employ approximately 850 employees during the peak season
across Canada, through its two cane sugar refineries, beet factory,
blending facility and distribution centre.