OSAKA -- Snow Brand Milk Products Co. will cancel part of its outsourcing contract with an Osaka-based warehouse company by the end of September in the wake of the recent food-poisoning scandal involving the dairy firm, Snow Brand sources said.
Snow Brand will cancel its contract with Yamato Moving on outsourcing jobs at its Osaka plant because there has been no shipment work at the plant since August, the sources said Tuesday.
It is the first time the nation's largest dairy products maker has canceled an outsourcing contract because of a food-poisoning outbreak.
The plant was shut down in July because health authorities suspected it was the site where the food-poisoning originated and prohibited the company from using it.
Yamato Moving currently has contracts with Snow Brand for shipment work at three Snow Brand plants -- in Osaka, Kyoto and Kobe. About 100 full- and part-time workers work at the Osaka plant, the sources said.
They also said a subsidiary of Snow Brand in charge of refrigerators at the Osaka plant will now have a surplus of between 60 and 70 workers.