A Kraft Heinz Co. manufacturing plant in Fullerton that dodged closure three years ago has been shuttered, putting 248 employees out of work.
The 170,000-square-foot facility at 1500 E. Walnut Ave. closed its doors Nov. 16. It had served as a Kraft Heinz manufacturing plant since 1989, producing the company’s all-in-one, pre-packaged Lunchables meals. Prior to that, it operated as a Claussen pickle factory since the mid-70s.
Kraft Heinz explained the closure in a statement issued last week.
“This factory was slated for closure three years ago, but because of the high demand for Lunchables and the plant’s strong track record of performance, we decided to keep it open,” the company said. “Since then, we have invested in additional network capacity at our plant in Garland, Texas, which makes Lunchables and other Kraft Heinz products. This improvement has allowed us to absorb the production volume coming from Fullerton and also enable us to continue to grow our Lunchables business.”
The company said affected employees would receive severance benefits, outplacement services and other support to help them pursue new job opportunities — including openings at other Kraft Heinz facilities.
“This decision is not a reflection of our employees or the quality of the products they make,” the statement said. “We fully appreciate the impact this decision will have on employees, their families and the communities where this plant is located. As always, we are committed to treating our people with the utmost respect and dignity.”
Patrick Kelly, secretary/treasurer for Teamsters Local 952, which represented the employees, said the union was saddened to see the Fullerton facility close.
“There are people who had worked there for over 40 years,” he said. “They started back when it was a pickle factory. And there is a multiplier effect because truck drivers and others who supported production at the plant and service people in retail also were affected.”
Kelly figures that for every displaced employee another three workers in the supply chain were impacted.
“The net job losses could be closer to 1,000,” he said. “We’d like to see Kraft Heinz come back to California with a modern facility and bring more jobs back. We’re going to try to assist as many workers as we can to find other jobs.”
When the factory was originally scheduled for closure in 2015, the company put in performance bonuses which were paid. The following year it was announced the facility would remain open.
“When the company announced in 2016 the factory would remain open, employees signed a new contract that did not take away any benefits,” Kraft Heinz spokesman Michael Mullen said via email.
But eventually, layoffs began. And they continued with regularity, according to an employee at the Fullerton facility who declined to be identified.
“We feel betrayed by the company and the union,” the worker said. “This process is extremely stressful. We don’t make a lot of money, and now we get treated like this after years and years of service.”
When Kraft Heinz announced the pending closure of the Fullerton plant in 2015, it was one of seven the company said it would be closing and shifting production to other plants — a move that would affect 2,600 jobs. The other facilities were in San Leandro; Federalsburg, Md.; St. Marys, Ontario, Canada; Campbell, N.Y. Lehigh Valley, Pa..; and Madison, Wis.
