Posted on: Wednesday, August 25, 2004

Foremost factory in Kalihi closed

By Sean Hao
Advertiser Staff Writer

Foremost Dairies-Hawaii shut down its milk production facility in Kalihi yesterday as planned and laid off 22 employees.

The shutdown of the milk-processing portion of Foremost's business was necessitated by equipment problems and should not affect consumers, Foremost said. Foremost said it is evaluating the cost of making needed repairs as it decides whether to resume milk production at the facility.

"It's pretty transparent to the consumer," said Foremost spokeswoman Lynette Lo Tom of the change.

The company notified its 125 or so workers about two weeks ago that it would suspend milk processing and packaging through September and possibly longer as it assesses the condition of its factory. For now, Foremost competitor Meadow Gold Dairies will process and package milk for Foremost, which will continue to distribute milk, yogurt, cottage cheese, sour cream and ice cream manufactured by others under the Foremost brands.

Ron Kozuma, business agent for the Teamsters and Allied Workers Local 996, which represents about 105 Foremost workers, said the union is in negotiations to secure severance benefits for laid-off workers.

He added that the union continues to oppose the milk production shutdown because it believes that outsourcing of milk production is in violation of the union's contract and creates a milk processing monopoly in the state.

Meadow Gold currently is Hawai'i's only major milk processor.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.