After opening with great fanfare in April 2008, the Modus Inc. modular structure manufacturing plant in Swift Current has laid off most of its workers due to the economic slowdown.
Last month, about 40 employees were given temporary layoff notices, reducing the workforce to about 20 at present, according to Tanja MacIsaac, office manager for Modus Modular Structures in Swift Current.
"We've kept a skeleton crew out there, so that if (customers) say they want one or two units, we can build those in a reasonable time-frame.,'' MacIsaac aid.
"At the same time, they're the core people, so that if we get another job, and we need to start bringing new people in, they'll train the new people."
Those layoffs came on top of permanent job cuts in January, which reduced the workforce by roughly 40, plus about 30 probationary staff, MacIsaac said Monday.
At peak employment in November, the manufacturing plant, which makes modular structures for schools, telecommunications and oil and gas industries, employed about 130 workers.
MacIsaac said the layoffs were largely the result of the suspension of the $54-million contract to build 1,500 portable accommodation units for Suncor Energy's Voyageur upgrader in Fort McMurray, Alta.
"It hasn't been cancelled,'' MacIsaac said. "It's just been suspended.''
When the Suncor project looked like it wouldn't resume anytime soon and there wasn't any "enterprise'' contract on the horizon, Modus decided to issue the second layoff notice June 9.
"We had hoped that the (first layoff) would be the only set of layoffs we'd have to do and that we would be able to maintain enough production to carry us through the (Suncor project) suspension,'' she said.
"However, (the slowdown) has gone on much longer than we had hoped, so we're having to take further steps so the company can remain viable and be ready when the jobs pick up again.''
At the official opening April 25, 2008, which was attended by Lt.-Gov. Gordon Barnhart, Premier Brad Wall and Cypress Hills-Grasslands MP David Anderson, Modus CEO John Verhagen said the 100,000-square-foot facility would employ about 100 workers.
With expansion, that number could rise to 200, Verhagen said. "We call ourselves the Cadillac of the industry,'' referring to the quality of Modus modular structures, Verhagen said.
Modus also operates Clear Choice Windows, a Swift Current-based company which the Calgary-based company acquired. The window manufacturing plant is still operating and employs about 12, MacIsaac said.
Source: Leader Post
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