Scarborough Plant Workers Protest Unexpected Job Losses
On January 6, several former employees of Joriki Beverages Inc. gathered outside the company’s Scarborough headquarters to voice their frustration and demand answers after being abruptly terminated. The protest followed an email sent on New Year’s Eve, which informed approximately 150 workers that their employment had ended “effective immediately.”
Impact of Listeria Outbreak and Financial Struggles
Joriki Beverages, a beverage manufacturing and packaging company, has faced significant challenges since a deadly listeria outbreak was traced to its Pickering plant last summer. The outbreak, which involved products for Danone’s plant-based milk brand Silk, resulted in three deaths and more than 20 illnesses. The factory was subsequently shut down, dealing a significant blow to the company’s operations.
The closure of the Pickering facility compounded existing financial pressures. Joriki is now seeking creditor protection under the Bankruptcy and Insolvency Act, owing over $200 million to more than 200 creditors, including $775,000 in unpaid wages and benefits.
Workers Left in the Lurch
In a termination letter, Joriki cited “significant business challenges arising from a product recall, including a significant loss of business and ongoing liquidity issues,” as the reason for its immediate cessation of operations. The company informed employees that while they would receive unpaid wages and accrued vacation pay, no severance or notice pay could be issued due to its financial state.
Many workers expressed shock and betrayal, noting assurances from management just weeks prior that the company was on stable footing.
“He told us everything was fine, and there were more orders coming in January,” said Rajendram Arumugam, who had worked at Joriki for over four years. Another long-time employee, Stanley Mathew, added, “You can’t just throw us out like that after years of loyalty.”
Legal Recourse Uncertain
Employment lawyer Luc Cerda of Samfiru Tumarkin LLP explained that while workers have a legal right to severance, the financial realities of the company’s creditor protection process mean those payments may not be guaranteed.
Legal and Public Fallout
In addition to its financial woes, Joriki is facing a class-action lawsuit in Quebec related to the listeria outbreak. The lawsuit names Joriki, Danone, and Walmart Canada as defendants, though it has not yet been certified by a judge.
Joriki Beverages has not responded to requests for comment on either the lawsuit or the workers’ terminations.