Deal between Ontario and Diageo panned by mayor, union in Amherstburg as plant prepares to close

Ontario will keep Crown Royal on the shelves in the province’s liquor stores, it says, after parent company Diageo agreed to almost $23 million in spending in the alcohol and agriculture sectors. 

But the deal won’t help people losing their jobs at the end of the month, the town’s mayor and the union representing workers said.

According to a statement Friday, the province said it had reached the agreement with the company after months of negotiations.

Last year, Diageo announced it would be closing its Amherstburg bottling plant in southwestern Ontario, putting nearly 200 workers out of their jobs by the end of February. 

Premier Doug Ford said the money would help strengthen provincial supply chains and “support the local community in Amherstburg and the surrounding area.”

“By standing firm in our plan to protect Ontario workers, we’ve secured nearly $23 million in investments that Ontario would not otherwise have seen,” said Ford.

As a result of the agreement, the province said Crown Royal will remain available though the LCBO. 

In a statement, a Diageo spokesperson said the company was pleased Crown Royal will remain on shelves.

“We thank Premier Ford and his team for their exceptional leadership and collaboration in reaching this resolution.”

While some of the investment is going to Amherstburg, most of the money is earmarked for the alcohol and agriculture sectors elsewhere in the province.

WATCH | Diageo workers prepare for what’s next:

Soon to be laid off Diageo workers on the job hunt

More than 150 Diageo workers in Amherstburg are set to lose their jobs. CBC’s Acton Clarkin reports on a union resource there to help them take the next step.

According to the province, about $500,000 will come to the group Invest WindsorEssex for economic development in Amherstburg, while another $500,000 will be used for “community projects” for the residents of Amherstburg. 

Invest WindsorEssex said it is working with the community to “identify the next steps and develop specific program supports that will respond to Amherstburg’s evolving economic needs.”

“The Town of Amherstburg has long played an important role in our region’s economic fabric. This funding will allow us to build on local strengths, support diversification and help position the community for long-term success,” chief executive officer Gordon Orr said in a statement.

The $500,000 will be used for resources and support for the Amherstburg economy, and “advance new opportunities for local businesses, workers and the broader Windsor-Essex community.”

Diageo will also spend $11 million to purchase grain spirits made by Greenfield in Johnstown, “supporting local production in eastern Ontario.”

The company will also spend millions on new packaging and $5 million on Ontario-based marketing. 

The agreement includes a commitment to explore options for a new Ontario canning facility and $1 million for organizations that support the agriculture sector. 

The province did not respond to a request for comment Friday afternoon. In a statement accompanying the announcement, Peter Bethlenfalvy, the minister of finance, said Ontario is “committed to protecting good jobs.”

“This agreement with Diageo reflects the strength of our agri food and manufacturing sectors, and the value of standing up for workers,” Bethlenfalvy said. “By working collaboratively with industry, we are building a stronger, more resilient supply chain while ensuring that companies benefiting from Ontario’s marketplace invest back into our people and our communities.”

Mayor says deal is disappointing

Amherstburg Mayor Michael Prue, however, wasn’t so pleased with the announcement.

It was “hoping against hope” the money would directly benefit local workers, he said.

“None of this is going to help a single soul in Amherstburg.”

Prue said he received an initial heads-up on Thursday that there would be an announcement with about $1 million for Amherstburg, and he was optimistic.

But when he learned the full details Friday, he was “disappointed.”

“I don’t even know who’s getting the money because they weren’t clear on that … whether that’s the town, some charity or group of charities, I have no idea,” he said.

John D’Agnolo is the president of Unifor Local 200, which represents about 160 unionized workers at the plant.

He said he was “not happy” with the announcement.

“That’s a drop in the bucket when it comes to investment,” D’Agnolo said. “As far as I’m concerned, that’s a pretty weak deal for a company that makes millions, hundreds of millions of dollars off of people in Ontario every every year.”

Prue said the town is working to see a new company in the bottling facility to keep those jobs. He’s aware that at least one offer has been made on the facility and that has not been accepted, and said there’s interest from at least two other companies.

Diageo listed the plant for sale in late December.

According to the company, it is in contact with interested parties, but did not directly address whether it had rejected offers.

Losing this many jobs in a town of Amherstburg’s size is “devastating,” he said.

“It’s hard to to say, you know, Diageo’s made an offer and the lion share of the offer is going to Toronto, eastern Ontario and elsewhere, and it’s not going here,” he said. “For that money to be spent elsewhere, it’s pretty sad.”