Hundreds of people rallied outside the Hershey chocolate factory in Smiths Falls, Ont., imploring the company to keep the plant operating.

"I want to convey to you that we are committed as a union to do everything that we can to convince the corporation to change their mind and reverse this stupid decision," Harry Gadman of the Canadian Auto Workers told the crowd on Saturday.

The company has announced plans to eventually move production to Mexico, a move which would eliminate about 500 good-paying jobs in the eastern Ontario city of 9,000 people.

Closure of the plant, which has operated for 44 years, would be devastating for Smiths Falls. Local dairy farmers and truckers do business with Hershey. The factory store is a major tourist draw.

A human cost would accompany the economic effects.

Dianna Robertson told CTV Ottawa that she's worked at the factory for 36 years.

"I met my husband here. Both my daughters worked here as they worked their way through school," she said.

"It's heartbreaking. It's like we're at a funeral. It's like somebody died," added Hershey employee Kathy Fox.

"If this closes, I'm not sure where I'm going to go. I'll probably have to go out of town," said employee Marion Ainsworth.

The story is a sad one that has been playing out in other eastern Ontario cities.

In the past year, Domtar closed a paper mill in Cornwall, throwing more than 1,000 out of work.

Nestle closed a factor in Chesterville, costing 300 jobs; and 200 people in Arnprior will lose their jobs when Pfizer closes a plant.

The auto industry in southwestern Ontario and the forest industry in the northern part of the province are also experiencing tough times.

Politicians get involved

Smith Falls Mayor Dennis Staples tried to put on a brave face for reporters.

"Smiths Falls has always had a history of setbacks over its history and we've always found ways around it," he said.

"But we can't do this alone. We need some federal-provincial support and optimistically, a reconsideration by Hershey to look at what they're throwing away by closing this plant."

Local Conservative MP Scott Reid promised to help lobby Hershey.

He wouldn't link Smiths Falls' woes to the expansion of free trade in North America.

"There have been positive and negative impacts. I don't think they affect small towns more or less than larger places, per se," he said.

Ontario Premier Dalton McGuinty said he telephoned Hershey CEO Richard Lenny on Friday to see if the province can do anything to help keep the plant operating.

"They just don't seem to be particularly receptive to that," he said.

The company left a message on Staples' cellphone saying it would not reconsider.

However, politicians say they'll still travel to Hershey's head office in Pennsylvania to plead for the plant's survival.

The cuts are part of a larger, three-year restructuring plan by Hershey, which intends to cut production by 11 per cent -- mainly in Canada and the U.S. -- while opening the new plant in Mexico.

The company plans a net reduction of 1,500 jobs.

With reports from CTV's Rosemary Thompson, Chris Day and files from The Canadian Press