Two months after receiving millions from the government, Soucy International, of Drummondville, is preparing the collective dismissal of 75 of its employees, the equivalent of 20% to 30% of its Quebec workforce.
According to the notice filed with the Quebec Ministry of Employment and Social Solidarity, the announced layoffs are planned for May 24 in the small municipality of Centre-du-Québec.
The company speaks of a “temporary” measure, but refuses to specify when its laid-off employees will be called back to work. They would have been informed of their fate on March 25.
The manufacturer of parts and systems intended for the military, agricultural, mining and oil industries, among others, is extremely discreet. He is content to explain these massive cuts by “a drop in his order book”.
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My lips are sealed
“The strong growth we have experienced in the last three years has led us to hire a lot […], writes its spokesperson, Joanie Mailhot. Today, we are behind that period, and labor needs are lower.”
On February 2, on the occasion of receiving the $5 million from Ottawa, Chantal Soucy, deputy president of Soucy International, with Soraya Martinez Ferrada, minister responsible for Canada Economic Development (DEC).
Photo: Taken from the Soucy International website
How many employees were hired during these years? And how many employees does it have now? Soucy International flatly refuses to respond. “Being a private company, we do not publish our number of employees,” management simply responds.
In an interview given to The Press, in 2021, the company supported hiring between “350 and 400 employees”, excluding its foreign activities. In 2022, The Express of Drummondville reported the signing of a work agreement with 250 of its employees, represented by the CSN.
Public aid
Last February, the family business received a $5 million grant from Ottawa. This support from Canada Economic Development (DEC) was to enable the acquisition of equipment to increase its production capacity and promote the creation of “more than 125 jobs”.
Given this state aid, associated with job creation, how does Soucy reconcile the planned layoffs today? “The financial assistance received recently is used to support our long-term investments,” its spokesperson replied. We continue to invest in our infrastructure and equipment despite the current context, since we anticipate an economic recovery and also growth linked to new contracts with strategic clients.”
A year earlier, in January 2023, the company had also received government assistance of $12 million. Of the total, $5 million came from the Quebec Ministry of Economy and Innovation and $5 million from Investissement Québec, the financial arm of the Quebec government. The remaining amounts came from DEC.