On May 15, Alaska Milk Corporation (AMC) announced a difficult but necessary decision to undergo an organizational transformation at our San Pedro, Laguna Plant. This is in line with our parent Company, Royal FrieslandCampina’s global directive to optimize all of its business operations worldwide. This change, though painful, will ensure jobs for the majority of our employees for a longer period.
Our management team has kept an open and transparent line of communication with union members to discuss these changes by consistently reaching out to the leaders of the Alaska Milk Workers Union (AMWU) and the Alaska Milk Supervisors and Technical Employees Union (AMSUTEU). This includes a conciliation meeting set up yesterday, May 19, in which AMC representatives attended an online call to show our willingness to communicate with the union. Unfortunately, only the union lawyer was present as union members insisted on a face-to-face meeting. We have expressed that we are open to this, and have rescheduled the meeting to next week.
About 200 employees from the manufacturing plant will be separated effective July 1, but the company is first undergoing a screening process to allow an objective and transparent evaluation of our affected employees throughout this week. Moving forward, AMC will continue to provide jobs for over 700 regular employees at the plant. All employees will continue to receive their regular pay during this transition period.
We are committed to guide and help our employees through this transition. We thank each and every one of them for their service, and assure all of them that we will be providing severance packages above the minimum mandated by law, as well as additional job transition support. All employees will continue to be paid as we undergo this transition, and we will also continue to have an open line of communication with our union members as we dialogue with them for an amicable resolution.
The AMC business remains stable, but these changes were necessary to keep our products affordable for long-term business sustainability. For 50 years, Alaska has been providing affordable nutrition for Filipino families, and these changes help us remain steadfast in that commitment while still supporting each of our valued employees.