Dixie cup plant closure in Brampton to cost 133 jobs

Dixie cup plant closure in Brampton to cost 133 jobs
Dixie cup plant to close in Brampton 133 workers to lose jobs
More than 100 employees will lose their jobs after Georgia-Pacific announced it will close its Dixie cup manufacturing plant in Brampton, Ont.

"The decision was based on kind of business needs and customer demand," said spokesman Kelly Ferguson.

“We do understand how this decision impacts our employees, their families and the community. We are committed to working with the union leadership at the plant and our employees throughout the remainder of the year to discuss opportunities at other GP locations, as well as provide them access to local support agencies and job-placement resources,” said Ferguson.

Dixie Cup plant to close in Brampton, 133 workers to lose jobs

The move will cost 128 manufacturing workers and five customer service employees their positions. They were informed of the decision last week.

In recent months, many companies have turned away from single use plastic straws after facing pressure from environmental groups to cut back on waste.

A request for comment to the union representing the workers was not immediately answered. This article will be updated after The Brampton Guardian is able to contact a union representative for comment.

Starbucks, Ikea, A&W, Recipe Unlimited Corp. and others have announced they would phase oSut plastic straws from their restaurants over the next several years. Some cities have even banned the product.

But Ferguson doesnt think the demand issues for Dixie cups stem from companies turning to reusable or compostable alternatives — like many have done with straws. The cups are made with paper.

“We kind of expected the trade and tariffs conversation. This decision was strictly based on market demand and was in no way influenced by politics or tariffs or anything like that.”

The product is still in demand, he said, but some of the companys customers in Canada are choosing to purchase from other cup manufacturers.

“We have announced to our employees in Brampton that we will permanently close the facility no later than the fourth quarter of this year,” said company spokesperson Kelly Ferguson.

The company will close the plant by the end of the fourth quarter of its financial year. It says 128 manufacturing workers and five customer service employees will lose their jobs.

The company, which informed employees of the closure last week, says the decision comes down to business needs and consumer demand.

While not providing an exact closure date, the company says it will operate at least part of the plant into the fourth quarter of this year to fulfil existing customer orders.

Spokesperson Kelly Ferguson says the product is still in demand, but some of the company’s customers in Canada are choosing to purchase from other cup manufacturers.

The company announced the closure on Monday, July 30, adding it will be laying off the plant’s 128 manufacturing workers and five customer service positions.

The company will close the plant by the end of the fourth quarter of its financial year. It says 128 manufacturing workers and five customer service employees will lose their jobs.

Ferguson added current political tensions and trade uncertainty between Canada and the U.S. were not a factor in the American-based company’s decision.

The company, which informed employees of the closure last week, says the decision comes down to business needs and consumer demand.

The company is assuring workers full severance will be paid to all employees as per the union contract, and will offer additional supports.

Spokesperson Kelly Ferguson says the product is still in demand, but some of the company’s customers in Canada are choosing to purchase from other cup manufacturers.