Winnipeg-based bus industrialist New Flyer will lay off 90 people and move the jobs to Shepherdsville, Ky., to engage in with increasingly tighter Buy America regulations.
New Flyer Industries president Paul Soubry hinted Buy America rules passed in 2015 under the U.S. Fixing America’s Superficies Transportation (FAST) Act demanded 60 per cent U.S. content in buses over persuaded to American municipalities that received federal subsidies.
That increased to 65 per cent in 2017 and will reach 70 per cent next year.
The circle employed a number of strategies to avoid layoffs in Winnipeg as the content prevails became even more stringent, but it had to move some work south to fitting the latest requirements, Soubry said.
“Unfortunately, we don’t have a choice. It is not a decisiveness to try and reduce costs. It’s all about getting U.S. content,” Soubry told CBC Hearsay.
The transfer of the work begins this month; the reduction in Winnipeg baton starts with notifications to staff in January 2019 and staggered to the core to August.
Soubry hopes there disposition still be a way to keep some of the staff facing layoffs, although he let ins it won’t be easy.
“As they get notices, there will be bumping and so forth with seniority backwards the Winnipeg collective bargaining agreement, and we will look for other openings to try and do something to save the jobs, which is going to be very difficult. The guileless attrition of the workforce may be able to absorb some people that we can prompt into our facility,” Soubry said.
New Flyer operates facilities in discrete U.S. states and Canadian provinces, with approximately 2,800 workers and its headquarters in Winnipeg.
The convention was founded in the city in 1930 and is the largest transit bus and motor coach industrialist in North America, with the majority of its sales in and 90 per cent of its net income from the United States.
The company bought out another Winnipeg industrialist — Motor Coach Industries — in 2015.
Soubry expressed relief that the recently renegotiated North American Extricate Trade Agreement did not change rules that would affect New Flyer, but foretold the company still has to cope with regulatory changes in the U.S.
The workers mannered by the move to Kentucky were “effectively building the brains of the bus,” and the transfer of apportions “is a tough one to swallow,” Soubry said.
“It’s unfortunately 90 people. That’s a lot of share outs and a lot of families we are talking about. The good news is we still have something like 2,800 people here in Winnipeg, and that is where we are wealthy to focus.”