While both Prime Minister Pierre Trudeau and Premier Doug Ford are urging manufacturers to keep working during the pandemic, the effects are being felt in the manufacturing sector.
In the auto sector, the union is urging General Motors’ Ingersoll, Ont. auto factory to go on a two-week layoff amid COVID-19 concerns and an expected industry slowdown in the fallout of the coronavirus.
Cami Automotive factory’s Unit 1 chairperson for Unifor Local 88 said in a letter that the union expects a layoff later this spring as auto sales slow in the wake of COVID-19.
To help slow the spread of the virus, union leaders are asking the likely layoff be moved up to March 23 and to last for a “minimum” of two weeks, the same amount of time people who might have been exposed to the virus self-isolate to make sure they are not infected.
“This may be the first time any union official has asked for a layoff of their entire membership, but these are not normal times,” Mike Van Boekel wrote. “If a layoff looks unavoidable in April or May, then let’s be proactive and bring it forward now and try to help stop the spread of the virus.”
Elsewhere, Toyota – which has locations in Woodstock and Cambridge – said its operations currently are proceeding as usual.
“The safety and security of our team members is our top priority and we are taking a number of extra precautionary measures to protect their health and wellness,” communications manager Michael Bouliane said. “There is no impact to our operations at this time. We will continue to closely monitor the situation.”
Ontario’s Kontrol Energy Corp., has numerous U.S. customers with approximately 10 per cent of its revenue coming from south of the border, with customers consisting of owners, operators and managers of commercial and industrial facilities.
While, to date, Kontrol has not experienced any direct cancellation of orders or projects, numerous customers, the company is following the appropriate government requirements in Canada and the U.S. to initiate plans to manage on-site access, employee interactions and adhere to various travel bans.
According to Kontrol, these customer actions will have an impact on overall revenues and earnings for 2020 and will vary with the length and duration of the COVID-19 crisis, with the sum of these impacts expected to create variability on quarter over quarter performance.
“We appreciate the fact that we have strong repeat business from our existing customers, and we continue to quote new opportunities,” says Paul Ghezzi, CEO of Kontrol. “Kontrol is taking the appropriate measures to work through any customer disruptions. Kontrol will adhere to the policy and procedures put in place by our customers and follow the appropriate on-site protocols that may be required.”
Ghezzi states that COVID-19 is a health crisis first and foremast, and is confident that it will be contained by the global health care system.
“Kontrol’s priority is to ensure the health and safety of its employees, customers, and partners. We continue to monitor the situation closely and at the same time remain focused on executing our strategic growth plans,”he says.
Moore Industries Inc.’s CEO and president Scott Saunders is also confident that the current pandemic will be contained.
“We are continuously monitoring the events surrounding COVID-19, following information provided at local, state, national and international levels regarding measures being implemented to contain the virus and it’s expanding impact,” says Saunders. “Our engineering and manufacturing facility and our regional offices remain open as we continue to engineer, make and ship our products, and provide the support that you need. The plans we are putting in place balance production needs in our production facilities with our employee’s health and safety following applicable national health services regulations and CDC guidance.
“With constant monitoring of the situation we will strive to effectively adapt to the changing needs of our employees, community and customers.”
While other sectors of manufacturing are trying to ensure it is “business as usual,” companies like LNG Canada have cut their workforce in half (see related article) as it allows communities in Kitimat, B.C. time to deal with the pandemic.
LNG Canada is currently constructing a $40-billion liquefied natural gas production and export facility in northwestern B.C.
While the full picture of the impact of COVID-19 is yet to be revealed on Canada’s manufacturing sector, it has already affected hundreds of thousands of workers in the restaurant, travel and and airline sectors, with businesses shuttering their doors for two to three weeks.
Ottawa has responded with the commitment of an $82 billion aid package, through a combination of direct supports for workers and businesses and tax deferrals.
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