Campbell Soup Toronto Closure – Severance Rights

Campbell Soup has announced that it will close its Toronto factory within the next 18 months, a decision that will put 380 workers out of a job. Production will be shift to the United States.

The Etobicoke factory will be closed in numerous stages. It currently serves as the company’s Canadian headquarters, however that distinction will be transferred to a new location in the Greater Toronto Area. Nearly 200 roles from the Toronto facility will be moved to the new headquarters.

Campbell Soup said the decision to close the factory was based on the fact that they were overproducing soup.

“Simply put, we are in a situation where we can produce a lot more soup than we sell,” said Ana Dominguez, president of Campbell’s Canadian operations.

The plant, opened in 1931, is the oldest of Campbell Soup’s locations in Canada. The company stated that the factory “cannot be retrofit in a way that is competitively viable.”

Sales of Campbell Soup have dropped recently due to what the company says is a change in the public’s tastes.

IN THE NEWS
• Campbell Soup shutting Toronto facility, 380 jobs impacted
• Campbell Soup factory in Toronto to close

Campbell Soup Toronto Factory Closure: Key Severance Facts

Campbell Soup employees who soon find themselves out of work should keep in mind these very important facts where their severance pay is concerned.

**NOTE: If you are one of the 200 or so employees who will be shifted to the new GTA headquarters, please read the next section of this page.

You Are Likely Owed More

Around 90% of 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.

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 factors, and more, severance entitlements can amount to as much as 24 months’ pay.

A Company’s Finances Will Not Impact Amount of Severance

A company’s financial situation will not be considered by the courts when determining a terminated employee’s severance package. Companies that are struggling financially will often argue that due to financial difficulties, they are unable to pay full severance. This is an excuse that will not hold water.

Keep in mind that once you sign a severance offer presented by your employer, you have accepted their terms and cannot seek help from an employment lawyer to obtain your full entitlements.

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

Campbell Soup: 200 Cases of Constructive Dismissal?

As noted above, around 200 employees at Campbell Soup’s Toronto factory will be shifted to their new GTA location. While this may be welcome news to many of those employees, there may be some who take issue with this change to the terms of their employment.

A change in workplace location has the potential to significantly impact an employee’s commute to and from work. If Campbell Soup opens their new headquarters in, say, Milton, and an employee living in Oshawa is asked to make this new trek, said employee would be burdened with a hefty increase in both travel time and travel costs.

Campbell Soup’s move to a new office location may also bring about a change in job title and/or duties for some employees. More responsibilities may be added to an employee’s plate for the same level of compensation, or maybe responsibilities – and pay – will be scaled back along with

Depending on the severity of either case, an employee may be able to argue constructive dismissal, and resign with severance.

What is constructive dismissal? At its core, it is when an employee has made a decision to resign from their employment because the change made or requested by their employer is not possible, or would result in fundamental change to their employment.

Frequently, employees believe that if they make a decision to leave their employment, they are not entitled to severance or that the decision would somehow impact the amount of severance they are owed. This is also incorrect. If an employee resigns because the change the employer has mandated is too substantial, that employee has been wrongfully dismissed and is owed severance.

If you believe that the fundamentals of your job are about to undergo, or have recently undergone significant changes, it is important that you contact one of our experienced employment lawyers in Ontario, Alberta or B.C. to determine what your next steps should be.

Disclaimer: The materials above are provided as general information about the rights of employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer.