Clemens Food Group announced it will close its Lancaster, Pennsylvania, plant, impacting 272 employees, according to an Oct. 4 news release. The closure is expected to be completed by the end of the year. The company is currently in talks to sell the facility.
The notice comes just five months after Clemens Food Group acquired Kunzler Foods in May, a deal that included two additional facilities in Tyrone, Pennsylvania.
However, as part of the acquisition, Clemens Food Group planned to shift Kunzler’s smoked meats production to its newer Hatfield, Pennsylvania, facility to streamline operations. This consolidation effort was announced in a July 1 press release.
Clemens Food Group also disclosed intentions to outsource Hatfield and Kunzler-branded frank production to a co-packing facility, while assuring that a substantial portion of frank production would remain in Lancaster. Despite these assurances, the recent announcement signals a complete closure of the Lancaster plant.
While negotiations for the sale of the Lancaster plant are ongoing, Clemens Food Group expressed its hope that new ownership will provide continued employment opportunities for the affected workers in the Lancaster area. The company emphasized its commitment to supporting employees during this transition.
Approximately 75% of the impacted employees are members of the United Food and Commercial Workers Local 152 union, as indicated in the company’s WARN Act letter.
The timing of the acquisition and subsequent closure is notable, as the union was preparing to negotiate a new contract with Kunzler Foods in May, just before the Clemens Food Group acquisition. Negotiations subsequently commenced with Clemens Food Group, with Local 152 advocating for the retention of production at the Lancaster plant.
Following the closure announcement, Local 152 filed an unfair labor practice charge against Clemens Food Group with the National Labor Relations Board. The union alleges that Clemens Food Group withheld requested information regarding the acquisition, production transfer, and pending facility sale.
Furthermore, Local 152 accuses Clemens Food Group of engaging in unfair labor practices, claiming the company had no genuine intention to bargain and retaliated against union members by relocating production. The union expressed its dissatisfaction with the company’s lack of transparency and cooperation.
Recent negotiations between the two parties resulted in Clemens Food Group offering two weeks of severance pay to employees who remain until the plant ceases operations. However, this offer was rejected by the union. The situation remains tense, highlighting the complex labor relations challenges faced by Clemens Food Group in the wake of the Lancaster plant closure.
