Simplot-NORPAC change occurring Friday
A Quincy Simplot employee lets corn run through his fingers. The vegetable processing plant will change owners on Friday, becoming the NORPAC Foods, Inc. operation, Quincy Foods.
Production start-up expected for Monday
Changes are beginning to take shape at the Simplot vegetable processing plant in Quincy.
As previously reported, NORPAC Foods, Inc., is purchasing the Quincy operation from Simplot and will rename it Quincy Foods, LLC.
"The transaction is expected to close on Friday, so both Simplot and NORPAC are working towards that objective," said Brian Bell, NORPAC spokesperson.
Bell said that reaching the objective requires work by executive managements of both firms, legal counsel for both firms and NORPAC's financial advisers.
The move follows a 10-day scheduled closure on the part of Simplot, for maintenance leading into the packing season. The plant was down from May 7 to May 16, said Simplot spokesperson Fred Zerza, and opened again Monday.
"We will continue to operate the plant through tomorrow, and the transaction should close at midnight Friday," Zerza said. "The owners become effective at that time … Everything seems to be on track."
Bell said that there would be a production shutdown over the weekend in order to do a readiness effort with limited staff for production start-up on Monday.
"We expect to resume normal production on Monday, and that will include both our readiness effort for the incoming pea crop and the continuation of repack operations," he said.
Bell also said that NORPAC has been very pleased with the response of the salaried managerial staff that has applied for and been selected with similar positions with Quincy Foods.
"Throughout this week, we've been interviewing and hiring hourly plant production employees, many of whom have previously worked at Simplot," Bell said.
Bell said he did not know the exact number of employees who had previously worked at Simplot, calling it "a significant number." He said he did not know if the number would be enough for the workers at the new plant to maintain unionization.
Patric Connelly, a commissioner for the Port of Quincy, said he did not believe that the change from Simplot to NORPAC would have very much of an impact.
"It's still business as usual," Connelly said. "I don't see the farming, or the amount that they do changing. We may have a little more community involvement."
Barney Treacy, president of the Quincy Valley Chamber of Commerce, agreed with Connelly.
"Right now, I don't know if it's going to have a big effect," he said. "They are retaining most all of the employees there. It's better than the alternative of closing the plant down … For the Quincy community, it's still going to pretty much operate as normal. We're hoping (Quincy Foods) will have a good relationship with the farmers and vendors. I manage Columbia Colstor. They'll be one of our main customers, so we're looking forward to a great long-term relationship."
Rich Davies, business representative assigned to the plant for Teamsters Local 760, said he found the communication with the buyer "sadly lacking."
"They're not telling me anything, which increases everybody's anxiety and aggravation," Davies said. "It may be in the long run that everything will work out, but we don't know that yet. The local union continues to be highly concerned about the way the buyer is handling the sale."
Davies said that the Simplot employees are apprehensive. He said that some of the workers have been employed for 42 years, and a number of families have worked in the plant.
"So if people are not hired or are rehired with significantly less benefits and wages, it's going to have a disastrous effect on the community, aside from being fundamentally unfair," Davies said. "The most qualified work force is the work force that they have. There's no reason to look elsewhere other than to try and circumvent and frustrate the union's efforts to stay in the plant and continue to represent the employees."
Hiring inexperienced employees would cost the company time and money in training them, Davies said.
"The union will continue to closely watch all aspects of the transfer of ownership," he said. "We're going to do everything we can to continue to represent these employees."
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