Palliser layoff hits nearly 500 jobs
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Hey there, time traveller!
This article was published 31/03/2020 (2004 days ago), so information in it may no longer be current.
Palliser Furniture Ltd. is temporarily laying off 72 per cent of its workforce and closing its Winnipeg facility for two weeks amid the COVID-19 global pandemic.
In the coming weeks, the company — which employs nearly 700 people in Winnipeg — will look to do the same at its Mexican facilities.
The layoffs come as the novel coronavirus pandemic brings retail business to a standstill and demand for Palliser products and services plunge.
“The decision that was made to lay off a significant amount of our workforce was exceptionally difficult. The scope of the layoffs has been unprecedented throughout our 75-year history,” a company spokeswoman said in a written statement.
“Palliser has applied for work share and is awaiting approval. Once received, we plan on acting as quickly as possible to re-engage with many employees who have been affected by the past few weeks of layoffs.”
In Winnipeg, 487 employees — or 72 per cent of the total headcount — have been laid off. The company said a small number of employees in executive and senior management positions will remain at work but have taken voluntary reductions in salary.
The company manufactures upholstered leather furniture in North America with operations in Canada, Mexico, Indonesia and China. In addition to its own products, Palliser is a supplier to a variety of furniture companies.
Palliser said it intends to take advantage of the federal government’s 75 per cent wage subsidy that’s being offered amid the pandemic.
“At this stage, we require more details, once those emerge tomorrow, we will be in a better position to provide clarity on how we intend to action the available subsidies,” the spokeswoman said.
“The subsidies will help us to recover more rapidly. Elements of our business that are critical for our future success can, with these new subsidies, continue to operate.”
The company said it will access whatever means provided by government to re-engage as many employees as possible.
— With files from the Canadian Press