Chicken processor reels after losing Safeway contract

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Published: February 19, 1998

Saskatchewan’s only poultry processing plant has lost its contract to supply chicken to the province’s Safeway stores.

Denys Robidoux, assistant general manager at Sunnyland Poultry Products Ltd. in Wynyard, said that Canada Safeway Ltd. has severed its relationship with the company effective the beginning of March.

He declined any further comment, referring all questions to Sunnyland’s general manager, who was not available by press time.

Officials with Canada Safeway Ltd. also could not be reached.

Jobs in jeopardy

Garry Burkart of the Retail, Wholesale and Department Store Union, which represents Sunnyland employees, said the company shipped about 40,000 birds a week to Safeway and losing that contract could put about 150 jobs at risk.

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But he also said he expects the company will find new customers to replace the Safeway business and at the end of the day no jobs will be lost.

“We’re quite confident that they’ll be able to pick up that slack,” he said.

“They have markets and we have jobs, so we’re working together to try and find an answer.”

Burkart said Safeway stores in Saskatchewan will now get their fresh and frozen chicken from Maple Leaf Poultry in Edmonton.

Burkart said he had been told that Sunnyland had no warning and was given no opportunity to match whatever pricing agreement was struck between Safeway and Maple Leaf.

“It just came out of the blue,” he said, adding the plant had recently purchased new equipment specifically to handle the Safeway business.

About the author

Adrian Ewins

Saskatoon newsroom

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