XL Foods is permanently closing its beef packing plant in Moose Jaw, Sask.
Company official Brian Nilsson announced the closure last week citing economic reasons and an ongoing labour dispute with workers.
Employees at the plant have been out of work since April 2009 when production was suspended due to unfavourable market conditions.
Until recently, XL officials had indicated the plant was a viable part of company’s overall business plan.
About 200 people who worked at the facility had expected to be back at work as early as last fall but are now facing permanent layoffs.
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“The closure is for business and economic reasons,” said Nilsson, cochief executive officer of XL Foods, in a statement to workers.
“The market conditions and the fact that we cannot get a viable collective bargaining agreement to allow us to operate the facility have caused us to make this decision.”
XL will continue to procure cows, bulls and fed cattle in Saskatchewan and Manitoba as it has in the past.
Officials from Nilsson Bros., the parent company of XL Foods, declined further comment.
