Tobacco Farmers Block Shipments From Plant Over Outstanding Payments

Source from:  Brantford Expositor 02/21/2011

Half a dozen disgruntled tobacco farmers blocked shipments from leaving a Tillsonburg processing plant Thursday, demanding they get paid $6.6 million before they allow it to leave. Despite the word of True Blend tobacco company co-owner Grant Sanders, who claims the farmers are being paid, four farmers sitting in trucks outside the Highway 3 plant claim they haven't received a cent since Sept. 23, 2010. "We haven't been paid by True Blend," said one of the farmers, who refused to give his name. He said the 64 farmers owed millions of dollars for supplying tobacco should have been paid within five days of delivery, but nearly five months later they've seen none of the money. The farmer and his peers said they have no idea why they haven't been paid. "That money has gone somewhere, but we don't know where," he said. "Money has been made on the sale of our tobacco, but none of it has reached us." Since last fall, at least a few of the farmers owed by True Blend have showed up at the plant on a near daily basis to demand payment. On Thursday, they told the drivers of two trucks about to leave the plant with a load of processed tobacco to stay put. "None of them are leaving until we get our money," said the farmer as he smoked a cigarette in the driver's seat of a silver truck. Behind them, at the north end of the large white processing plant, a tractor trailer sat idling, apparently respecting the farmers' wishes. Another farmer pointed to another trailer sitting at the edge of the wet, muddy lot outside True Blend. He said the truck is full of tobacco, but left there as a result of their protest. Contrary to rumours circulating in the community, the farmers say there was no physical altercation that took place during their day-long blockade of the plant. "We know some of the people who work here," said a farmer in the backseat. "We're not after them. They're just workers. We just want to get paid." The farmers say they told the workers not to load another trailer, a demand they supposedly honoured. "No one wants to cross an imaginary picket line," said the first farmer. The tobacco growers insisted they will be back on Friday unless they get paid. "We're screwed if we don't get paid," he said. Meanwhile, in an interview on Wednesday, Sanders claimed the "farmers are getting paid" on behalf of his True Blend co-owners Brian Poreba and Victor Osztrovics. While the operation has faced technical and financial hardships this past season, the facility is now up and running, Sanders said. He claims that millions of dollars have been paid out so far. However, True Blend growers were told to seek legal counsel during a special meeting held by the Ontario Flue-Cured Tobacco Marketing Board on Monday, according to chair Fred Neukamm. The impacted growers may decide to collectively launch a lawsuit to recoup some of their losses. The new contract system has tied the hands of the tobacco board. Under the new system, individual contracts are struck up between each buyer and each grower, Neukamm explained. This limits the ability of the board to collectively represent growers when contracts go awry. While the board has a performance bond with the buyer, some farmers may not be interested in cashing it. The reportedly $2 million bond would hardly put a dent in their losses, farmers said. Cashing it could also supposedly pose problems for the company. "It is widely believed that it would cause insolvency and bankruptcy," Neukamm said. When asked if True Blend is facing bankruptcy, Sanders denied the claim. "Absolutely not," he said. "They (True Blend) have tremendous equity coming in on time." Neukamm wouldn't confirm if True Blend has applied for licensing for this coming season. However, he said that it was "very unlikely" that any buyer who failed to meet its commitments from a prior year would have its licence renewed. Enditem