Milk manufacturer Alaska said it would lay off some 200 workers from its San Pedro, Laguna plant by July 1 as part of a reorganization to stay afloat during the pandemic.
The "painful" change, according to a statement from Alaska Milk Corp, would "ensure jobs for the majority of our employees for a longer period." Some 700 regular employees will continue to work at the plant with regular pay during the transition, it said.
"We are committed to guide and help our employees through this transition. We thank each and every one of them for their service, and assure all of them that we will be providing severance packages above the minimum mandated by law, as well as additional job transition support," it said.
In a separate statement, Alaska cited redundancy as a basis for screening employees for layoffs.
Aside from a severance package, workers to be laid off will receive monthly grocery allowances, product allowances, and an added gratuity pay, said lawyer Maria Angela Esquivel, corporate affairs director at Alaska.
“Most importantly, as we are all still going through this COVID-19 pandemic, Alaska assures all affected employees that they and their respective dependents will continue to maintain their health benefits until the end of the year,” she said.
Despite the layoffs, Alaska said its business remains stable with the change "necessary" for long-term business sustainability.
Alaska is known for its portfolio of milk products, ranging from powdered milk to creamers.
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