Feb 20 • 11:00 UTC 🇨🇦 Canada Global News

Behind the scenes of Diageo’s attempts to soften the blow of an Ontario plant closure

Diageo's closure of its Crown Royal plant in Ontario has led to tensions with the provincial government, prompting Premier Doug Ford to initially take a strong stance before settling on a more diplomatic solution after negotiations with the company.

Diageo's notification of impending job losses at its Crown Royal bottling facility in Amherstburg, Ontario, triggered a series of communications with Premier Doug Ford's office, which were revealed through internal emails obtained by Global News. In the wake of this announcement, Premier Ford initially reacted by cultivating a strong public response, including an event where he poured out Crown Royal whisky, symbolizing his protest against the plant's closure. His actions drew attention and heightened public interest in the matter, hinting at a potential political fallout for both the government and Diageo.

The incident underscores the delicate relationship between large corporations and government officials, where PR strategies often intersect with labor impact. Internal communications suggested a prior amicable relationship between Diageo and the government, raising questions about the effectiveness of their publicized effort to mitigate job loss. The revelation that Ford's initial stance was influenced by these communications reflects the complexities of managing corporate closures in a politically sensitive climate.

Ultimately, the situation prompted Diageo to commit $23 million to assist displaced workers, softening the initial backlash. This resolution illustrates not only the economic implications of such plant closures but also the potential for corporate contributions to help reconcile community and governmental tensions. It also highlights the growing scrutiny that corporations face regarding their social responsibilities when making such impactful decisions.

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