San Francisco Chronicle - (Sunday)

Smithfield to shutter San Jose meat plant

- By Shwanika Narayan

Seven months after closing its meatpackin­g plant in San Leandro, Smithfield Foods Inc. is closing its San Jose facility and laying off 139 workers, marking its departure from the Bay Area after decades in business.

In a letter to state officials, the Smithfield, Va., pork processor said it regretted the “circumstan­ces that made the layoff necessary.” Along with 105 production employees, plant managers, supervisor­s, human resources personnel and other workers are affected. The layoffs are effective March 13. The plant produced bacon and corned beef, according to Smithfield’s website.

“This decision is a result of a lease expiration and the projected sale of the building by the property owner,” Smithfield said in an email to The Chronicle. “Consequent­ly, the company is discontinu­ing its operations in San Jose.” The news has been devastatin­g to some workers who have worked at the plant for years, said Jonathan Hughes, a union representa­tive in San Jose for United Food and Commercial Workers Local 5, which represents the workers.

“It was fairly short notice, and they didn’t need to move their plant,” Hughes said. “There are other locations that could have worked locally.”

Smithfield has been downsizing its operations amid a companywid­e reorganiza­tion announced in 2015. Most of its plants and distributi­on centers are in the South and Midwest. Founded in 1936, Smithfield was sold to WH Group, a Chinese company headquarte­red in Hong Kong, in 2013. It has more than 40,000 employees in the U.S.

Smithfield said it is offering the San Jose employees jobs at other locations within the company or with other local employers, along with relocation assistance. The closest Smithfield operation is in Los Angeles.

The San Jose plant is in an industrial enclave of the city near the intersecti­on of Highway 101 and Interstate 880, not far from the office buildings lining North First Street that house the headquarte­rs of tech companies PayPal and Nutanix. It was once known as Mohawk Packing and acquired by Smithfield in the late 1990s, according to city records. With its closure, the meatpackin­g sector in San Jose is down to one midsize operation — San Jose Valley Veal — compared with seven or eight such facilities 20 years ago, Hughes said. Other Bay Area meatpackin­g centers have shrunk over the decades. San Leandro, where Smithfield shut its Saag’s plant last year, has lost several producers. Part of San Francisco’s BayviewHun­ters Point neighborho­od is known as Butchertow­n, for the area where the city concentrat­ed its slaughterh­ouses in the 19th century. The Swift & Co. plant in South San Francisco, crucial to that city’s developmen­t, closed in 1968.

 ?? LM Otero / Associated Press 2011 ?? The company will lay off 139 workers when it closes the plant.
LM Otero / Associated Press 2011 The company will lay off 139 workers when it closes the plant.

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