Salvatore Farms Ltd had developed into a major local grower and exporter of various crops and grains, including tomatoes. Frank’s grandparents left the farm to his parents, who wanted Frank and his siblings (one brother and one sister) to take over ownership and control.
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Stakeholder involved in issues:
Members of the general public – public backlash, bad reputation
HR issues
Increase in demand for products
Majority of employees are male
Stakeholders Involved
Salvatore Farms Ltd had developed into a major local grower and exporter of various crops and grains, including tomatoes. Frank’s grandparents left the farm to his parents, who wanted Frank and his siblings (one brother and one sister) to take over ownership and control. Frank’s grandparents’ contribution to providing high-quality, sustainable produce was instrumental in the company’s growth. Salvatore Farms was also proud of its ability to generate several jobs for Canadians, where employees were paid a fair wage, received a robust compensation package, and were treated with dignity and respect. Frank bought a small manufacturing and distribution plant in Ontario in 2005.
Frank started to consider ways to develop Salvatore Farms Ltd and expand the family’s company several years after returning to school to complete a graduate business degree. Frank wanted to create a new brand of organic tomato sauce because of his love of cooking and his family’s special tomato sauce recipe. Salvatore Sauces Ltd was established as a result of this vision. Initially, Salvatore Sauces employed about 30 people in various aspects of the production process, including sauce preparation, packaging, and distribution. Frank’s sauce was 100 percent organic, vegan, and vegetarian friendly, which was a key selling point for Frank’s market, which he initially reached via grocery store distribution.
Increase in Demand for Produce
Salvatore’s tomato sauce demand had risen significantly as the brand gained rapid popularity thanks to Frank’s successful marketing strategies, which included appearances on television and inclusion on restaurant menus. Salvatore’s tomato sauce was available in most big grocery stores across Canada by 2012. Salvatore Sauces were distributed worldwide by 2016, with a strong presence in the United States. Frank had cut ties with the family farm in Manitoba to concentrate solely on the manufacturing and distribution plant in Ontario, which now employed 100 full-time employees and 75 part-time employees. Employees work two eight-hour shifts a day, Monday through Friday, in different manufacturing areas, equipment repair, washing, order management, packaging, and shipping Salvatore sauces across North America. Part-time workers are mostly female and come from immigrant communities, while full-time employees are mostly male. To carry goods and equipment around the manufacturing facility and load it onto delivery trucks, full-time employees must be able to lift 50 pounds. When hiring full-time staff, the company guesses which applicants are at least 6 feet tall and physically fit enough to lift/carry 50 pounds based on their appearance. Approximately one-third of Frank’s full-time workers have worked for the firm for more than five years and receive at least $30 per hour. As the company grew, Frank realized that the cost of labor was squeezing profits, so he started recruiting full-time workers at $20 per hour, still well above the provincial minimum wage. Non-managerial full-time workers enjoy extended health insurance and three weeks of paid leave.
The majority of Workers are Males
The majority of the employees are males. This is because males are well equipped to perform heavy duties. For instance, Part-time workers are mostly female and come from immigrant communities, while full-time employees are mostly male. To carry goods and equipment around the manufacturing facility and load it onto delivery trucks, full-time employees must be able to lift 50 pounds. Lifting or strenuous physical labor is not needed in all full-time jobs. When working on the plant floor, there is no difference between positions. More senior workers also tutor new hires without a structured training process, teaching them how to perform various tasks and operate various equipment such as the production line, industrial mixers, and forklifts.
Frank has plans to expand into the prepared frozen foods market, selling a line of high-quality frozen pasta dinners under the Salvatore name. Even though the sauces are sold as organic, Frank has been using nonorganic tomatoes to meet increased demand over the last two years since they are less costly and have a longer shelf life since the sauces are delivered around North America. The company’s lawyer and vice president of marketing discovered a loophole that allowed food goods to be labeled organic if they had at least 10% organic ingredients, and a disclaimer was added to the label.
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