New Flyer jobs headed south to Kentucky
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Hey there, time traveller!
This article was published 12/11/2018 (2687 days ago), so information in it may no longer be current.
The Winnipeg-based bus manufacturer New Flyer has announced plans to cut 90 local jobs and ship them to Kentucky in the first half of 2019 because of Buy America regulations.
The move came in response to regulations under the U.S. Fixing America’s Surface Transportation (FAST) Act, which was passed in 2015 and requires a certain amount of U.S. content in buses purchased with federal funds.
The jobs are being relocated to a New Flyer facility in Shepherdsville, Ky.
As of October 2019, the FAST act will require buses purchased with federal funds to have been built with 70 per cent U.S. material.
“Nearly 90 per cent of NFI Group Inc.’s revenue comes from U.S. customers,” a written statement from the company reads.
To meet the requirements under the FAST act, New Flyer first moved to source materials and parts from Canadian or international suppliers through U.S.-based companies. However, due to increased requirements for U.S. content, that’s no longer a tenable solution, the company said.
“New Flyer has now had to transfer to the U.S. some of the high-dollar electrical components currently fabricated in Winnipeg,” the statement reads.
“The decision was made after exhausting the external supply chain options, but given the high dollar content of the electrical components, there were no other viable alternatives.”
The Winnipeg workforce was advised of the jobs cuts in October. The company employs more than 2,800 people in Winnipeg, and no further local job cuts are expected.
— staff