Canada auto parts maker to lay off 800 employees
Lower orders from the automotive and building trades industries have forced Canada's second-biggest auto parts maker Linamar Corp. to lay off about 800 workers, a company spokeswoman said Thursday.
By Agencies |
TORONTO: Lower orders from the automotive and building trades industries have forced Canada's second-biggest auto parts maker Linamar Corp. to lay off about 800 workers, a company spokeswoman said Thursday.
Crystal Roberts said that the layoffs, which represent about 4 percent of the company's total work force, were necessary because of rising costs for raw materials, energy and transportation and the strong Canadian dollar.
``With our volumes being down there's obviously going to be some idle employees in our manufacturing plants, necessitating layoffs,'' Roberts said. She said the layoffs were temporary, but did not know when the employees might be recalled.
The company, which makes precision metal components, modules and systems for global auto assemblers, has been sharing workers between plants and shortening work weeks to reduce costs and overhead.
Canada's export-sensitive forestry and automotive manufacturing sectors have been ravaged by the economic downturn in the United States, a major trading partner, as well as the strengthening Canadian dollar, which makes exports less competitive.
Linamar has more than 12,000 employees in 38 manufacturing facilities in several countries, with 22 of them located in Guelph, Ontario, where the majority of the layoffs occurred. Canada's largest auto parts maker is Magna International, based in Aurora, Ontario.
Crystal Roberts said that the layoffs, which represent about 4 percent of the company's total work force, were necessary because of rising costs for raw materials, energy and transportation and the strong Canadian dollar.
``With our volumes being down there's obviously going to be some idle employees in our manufacturing plants, necessitating layoffs,'' Roberts said. She said the layoffs were temporary, but did not know when the employees might be recalled.
The company, which makes precision metal components, modules and systems for global auto assemblers, has been sharing workers between plants and shortening work weeks to reduce costs and overhead.
Canada's export-sensitive forestry and automotive manufacturing sectors have been ravaged by the economic downturn in the United States, a major trading partner, as well as the strengthening Canadian dollar, which makes exports less competitive.
Linamar has more than 12,000 employees in 38 manufacturing facilities in several countries, with 22 of them located in Guelph, Ontario, where the majority of the layoffs occurred. Canada's largest auto parts maker is Magna International, based in Aurora, Ontario.
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