Winnipeg's New Flyer cuts 320 jobs on bus-order delay
Last Updated: Monday, August 17, 2009 | 5:38 PM ET
CBC News
Transit bus maker New Flyer Industries announced plans Monday to lay off as many as 320 people, citing the deferral of a major U.S. order.
The Winnipeg-based company said up to 270 unionized positions would be slashed at its plants in Winnipeg and in Crookston and St. Cloud, Minn. About 130 of the layoffs will be unionized workers at the company's Winnipeg plant. Company-wide, another 50 salaried jobs will also be cut — mostly in Winnipeg.
The cuts amount to 13 per cent of its North American workforce. The company employs about 1,200 in Winnipeg, 700 in St. Cloud and 300 in Crookston.
The company said some of the cuts would take effect immediately, and the rest by the end of the year.
New Flyer revealed in late July that the production of 140 diesel-electric hybrid articulated buses was being put on hold because a major U.S. customer has having difficulty getting funding.
New Flyer also said its Winnipeg and Minnesota plants would be idled for six production days during the last couple of weeks of the year.
News of the cuts came as the company released second-quarter results that showed a net loss of $14.7 million.
The company said it anticipates being able to maintain its current monthly distribution to shareholders. New Flyer is structured as an income trust. Units of the company fell 51 cents to $8.18 in Monday trading.
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