Franklin-based Strauss Brands laying off nearly 200 employees, selling two product lines
Strauss Brands plans to lay off nearly 200 employees and sell two of its product lines.
The Franklin-based meatpacker alerted the Wisconsin Department of Workforce Development on Oct. 11 about its intention to permanently lay off workers ― most based in its Franklin facility at 9775 S. 60th St. ― on or about December 10.
The reduction will impact about 195 employees in Wisconsin, with most working in Franklin, according to a letter to the Wisconsin DWD from Strauss Brands President Jack Prince. The company said it must make up to 127 of the staff cuts permanent.
“We are working diligently to mitigate these circumstances,” said Prince. “However, we currently do not know if it will be possible to rehire any of the individuals impacted by this reduction.”
The Franklin facility's employees are represented by the United Food and Commercial Workers Union Local 1473. Strauss said termination decisions for employees in the bargaining unit “will be based on employee seniority” and employees will have bumping rights ― a provision which allows one employee to displace another when the first employee’s job is eliminated.
“Termination decisions for employees that are not members of the bargaining unit will be based on business necessity, and those employees will not have bumping rights,” Prince said.
Union says layoffs will impact over 60% of its bargaining unit
UFCW Local 1473 released a statement that it has “proudly represented the 135 members at Strauss Brands for the last 50 years.” It said the sale of Strauss’ lamb and veal portion of its business will impact over 60% of the bargaining unit.
Union President Jake Bailey and the leadership team are meeting with Strauss’ senior management to negotiate the effect on the workers.
“President Bailey is also in discussions with other employers in the area to help relocate the displaced workers,” the union said in a statement.
Strauss is also selling off its veal and lamb production
Strauss has also agreed in principle to sell its veal and lamb production to Catelli Brothers Family of Foods, a U. S.-based subsidiary of Preval AG in Canada. Those two lines would shift to plants in Collingswood, New Jersey, and Sutton, Massachusetts.
Current Strauss customers should expect a “seamless move,” the company said.
“Strauss is confident that valued customers will be in excellent hands with the transition to Catelli Brothers,” Strauss said in an Oct. 18 news release.
Strauss, in what the company termed as a “new focus and partnership,” said the plan for the Franklin location going forward is to “focus on its top-line growth category” of grass-fed beef and expand its product offerings there through a new partnership with Texas-based Eddy Foods and its Grass Rooted label.
“Eddy brings highly sought-after value-added capabilities to Strauss's premium domestic grass-fed grass-finished beef supply,” the release said. “These include ready-to-eat products across smoked sausage, sliced slow-smoked brisket, marinated, sauced, and shredded BBQ. Eddy also has a wide breadth of offerings in pork, chicken, and turkey.”
Strauss Brands tried to expand to new facilities twice in recent years
Strauss attempted to persuade the City of Milwaukee and neighbors of the Century City Business Park to allow it to build a slaughterhouse there before dropping those plans in late 2019 amid backlash.
The following year, the company tried again to expand, this time into a new 152,035-square-foot facility in Franklin. However, this proposal was met with similar disdain from neighbors who complained the area selected was residential in nature.
A resident group called Franklin Community Advocates was formed and sued the City of Franklin related to its approval of a special use permit for the proposal. After 2 ½ years in court, both parties came to an agreement in July for a $25,000 settlement to be paid to FCA by the city.
Strauss Brands dropped its proposal in February 2022 and sold the 30-acre parcel on the southwest corner of West Looms Road and Monarch Drive in Franklin to Cellco Partnership, an affiliate of Verizon Wireless, for $2.79 million in December 2022.
Contact Erik S. Hanley at erik.hanley@jrn.com. Like his Facebook page, The Redheadliner, and follow him on Twitter @Redheadliner.
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This article originally appeared on Milwaukee Journal Sentinel: Strauss Brands to lay off 195 employees, most of them in Franklin
