Dixie Cup Brampton Plant Closure | Severance Packages

Dixie Cup Closing Brampton Plant

The Dixie Cup plant in Brampton, Ontario is closing, according to manufacturer Georgia-Pacific.

The plant will be shut down by the end of the fourth quarter of its financial year in 2019.

In total, 128 manufacturing workers and five customer service employees at the Dixie Cup plant in Brampton will lose their jobs.

Employees were informed of the closure last week.

Kelly Ferguson, spokesperson for Georgia-Pacific, said that the decision was based on their business needs and falling consumer demand. He stated that Canadian Dixie Cup customers are now choosing to purchase from other cup manufacturers.

U.S. plants that manufacture Dixie Cups will continue to operate.

IN THE NEWS
• Dixie Cup plant to close in Brampton, 133 workers to lose jobs
• Brampton’s Dixie Cup plant to close

Dixie Cup Severance: Key Facts

Dixie Cup plant employees, who are non-unionized, that have been terminated should keep in mind these very important facts where their severance pay is concerned:

You Are Likely Owed More Severance

Around 90% of non-unionized employees are wrongfully dismissed when they are terminated from their job. In other words, 90% of people who are let go are not offered the severance that they are rightfully owed. Instead, their are offered terrible severance packages.

Often times, employers count on the fact that their employees may not know what their full severance entitlements are. Employees are offered inadequate severance, with a (meaningless) deadline that exists only to pressure the employee into signing away their opportunity to have the offer reviewed. Common law severance pay is based on several factors, including age, years of service, and position. Based on those and other factors, severance entitlements can amount to as much as 24 months’ pay.

• The Truth About Severance Pay Deadlines

Working Notice

Employers operating in Ontario who wish to terminate an employee “without cause” (the case for non-unionized Dixie Cup employees) must provide either notice (working notice) or pay in lieu of notice, or severance pay/termination pay.

Working notice requires an employer to notify the employee that in a specific amount of time (days, weeks or even months) their employment will be terminated. The employee is expected to continue working during this notice period, during which time they will continue to be paid the same amount pre-notice period.

Often times, employers will provide an employee with inadequate working notice. The amount of time provided does not take into account their full entitlements, as determined by age, position, length of service, and other factors as indicated by common law. It is therefore extremely important to contact us to determine if the working notice is adequate. If it is not, your employer may be required to provide severance in addition to notice, in order to meet your full severance entitlements under common law.

You Can’t Change Your Mind After Signing

Once you accept a severance package from Georgia-Pacific, who owns the Dixie Cup plant in Brampton, and sign off on a document indicating that you have agreed to the notice and/or severance pay provided, you cannot change your mind.

Keep in mind that you will also forfeit your right to seek legal assistance with your severance package from an experienced lawyer at Samfiru Tumarkin LLP.

BEFORE YOU SIGN ANYTHING, use the Severance Pay Calculator to determine what you are owed.

Contact a legal expert at Samfiru Tumarkin LLP today to discuss your severance options with Georgia-Pacific, and get what you’re owed.