Union agrees deal with Diageo over Crown Royal closure
Diageo and Unifor have struck a shutdown agreement for union workers at the Crown Royal bottling plant in Amherstburg, Ontario, triggering efforts to find a new employer for the site.
In August, Diageo announced plans to shut its Crown Royal bottling facility in Amherstburg, putting 200 jobs at risk. The company intends to shift some of its bottling capabilities to sites in the US and its plant in Valleyfield, Quebec.
After months of uncertainty for its workers, Diageo and Unifor have now come to an agreement for an enhanced severance package, following a vote on 30 November that saw 89% of members favour the deal.
Diageo will proceed with closing the site as intended in February 2026. Approximately 160 members will have the option to leave immediately or remain until the plant shut downs.
“We fought hard to keep the jobs here,” said Unifor president Lana Payne.
“This is not the outcome we wanted, but in the end, we acted to secure the best possible outcome for our members while they still had the protection of their collective agreement.”
Unifor will now focus on working with the town of Amherstburg and the province of Ontario to attract a new employer to the facility and preserve local jobs.
“We’re not giving up on these workers or this community,” added Unifor Local 200 president John D’Agnolo.
“Our goal now is to bring new investment into Amherstburg and ensure these skilled workers have access to good, stable jobs for the long term.”
The town’s mayor, Michael Prue, claimed in October that Diageo refused a multi-million-dollar offer from an unnamed spirits company to purchase the site.
Prue told The Spirits Business: “We are now awaiting whether Diageo will put the property up for sale. The town is anxious to retain these jobs.”
Unifor is Canada’s largest union in the private sector, representing 320,000 workers in every major area of the economy.
Diageo confirmed the ratification of the union deal, sharing several details of the agreement.
The firm noted that the agreement includes severance and separation enhancement payments based on seniority, benefit continuation beyond closure, and an undisclosed contribution to the Unifor community action centre for re-training.
It reiterated its previous statement that Diageo remains committed to Canada and operates production facilities in Manitoba and Quebec, and corporate headquarters and warehouses in Ontario.
Diageo also employs 500-plus people across Canada, including more than a fifth in Ontario (outside of those working at the Amherstburg site).
Will the LCBO ban Diageo products?
Diageo has faced backlash against its move to shut the site. Ontario premier Doug Ford threatened to “hurt” Diageo and said he would delist Crown Royal whisky from Liquor Control Board of Ontario (LCBO) stores if the closure happened.
And it’s not just Crown Royal that could suffer. Ford has told local news outlets that he would remove all Diageo products from LCBO shelves. This could include brands like Smirnoff vodka, Johnnie Walker whisky, Captain Morgan rum, and Tanqueray gin.
The Spirits Business has contacted the LCBO and Ford’s office for comment.
In the LCBO’s second-quarter update, covering 22 June to 11 October 2025, Smirnoff was the top-selling spirit by net sales.
It was followed by Crown Royal, Canadian whisky JP Wiser’s, Captain Morgan, Absolut Vodka, Canadian Club whisky, Jameson Irish whiskey, Johnnie Walker, and Forty Creek whisky.
Most Canadian provinces, including Ontario, have removed American spirits from shelves due to trade tensions between the two countries.
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