Crown Royal Maker and Union Agree on Ontario Plant Closure Plan
The British distiller Diageo, known for producing Crown Royal, has reached an agreement with the union representing employees at its Ontario plant, which is set to close in February 2026. This closure will impact 168 unionized workers in Amherstburg, Ontario, as production shifts to facilities in the United States and Valleyfield, Quebec.
Crown Royal Maker’s Ontario Plant Closure Plan
The decision to close the Amherstburg facility was announced in August 2023 and is part of a broader restructuring within the company. Diageo clarified that the closure is not linked to any tariffs from U.S. policies. In fact, it has made similar operational adjustments in other countries, including the United States, Italy, and Scotland.
Union Agreement and Worker Impact
The agreement with Unifor Local 200, ratified by 89% of the members, includes several benefits for the affected workers. These provisions consist of:
- Severance and separation enhancement payments based on seniority
- Continuation of benefits beyond the plant’s closure
- Investment in retraining programs through Unifor’s action centre
Union members have the option to leave their positions immediately or remain until the official closure date. Unifor President Lana Payne stated the need to secure the best possible outcome for the workers while under the protections of their collective agreement.
Political Response and Community Concerns
The closure has sparked criticism from local leaders, including Ontario Premier Doug Ford. In a dramatic display, Ford publicly poured out a bottle of Crown Royal during a news conference, expressing his discontent with Diageo’s decision.
Ford highlighted the $765 million spent by the Liquor Control Board of Ontario (LCBO) on Diageo products and criticized the decision to close the plant, suggesting a lack of foresight from company executives.
Moreover, Mayor Michael Prue of Amherstburg mentioned that there are three companies interested in potentially taking over the Diageo facility. While Diageo has yet to engage in talks regarding a takeover, the company has shown willingness to discuss options after finalizing the union agreement.
Future Prospects for Amherstburg Workers
John D’Agnolo, president of Unifor Local 200, expressed commitment to working with local and provincial authorities to lure new businesses to the area. He emphasized the importance of securing stable employment opportunities for the skilled workforce in Amherstburg.
