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Tuesday, February 11, 2025

Chaudière-Appalaches Faces Job Cuts Despite 30-Day Rate Freeze

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As François Legault’s visit approaches, uncertainty looms over Chaudière-Appalaches, where many of the 700 companies face potential layoffs despite a temporary customs tariff reprieve. Industry leaders express concern about the impact of tariffs, with some considering relocating production to the U.S. A recent survey indicates that 60% of local firms may reduce production if tariffs are enforced, prompting local officials to seek solutions to maintain employment and economic activity in the region.

Impending Layoffs Despite Temporary Tariff Reprieve

As the highly awaited visit of François Legault approaches, a cloud of uncertainty hangs over Chaudière-Appalaches, where many of the 700 companies with over 50 employees are bracing for potential layoffs. This comes even in the wake of a 30-day pause on customs tariffs.

“Businesses are at a loss,” states Hélène Latulippe, the Executive Director of the Beauce Economic Council (CEB). She confirms that significant industry players are poised to issue layoff notices, adhering to the required notification periods stipulated by law.

Concerns Over Tariff Impact and Potential Relocation

Under CNESST regulations, companies with more than 50 employees must provide an eight-week notice for collective layoffs, while those with 100 or more employees face a twelve-week requirement. The recent tariff measures threaten to impact the entire Chaudière-Appalaches region significantly.

Alain Vallières, Executive Director of Economic Development Bellechasse, highlights that some companies are contemplating relocating production lines to the United States. “I recently spoke with an entrepreneur who mentioned that 45% of their production and 50% of jobs could be affected, translating to around 150 jobs lost to American workers,” reveals Vallières.

In Beauce, while there was a collective sigh of relief earlier this week, the atmosphere remains cautious in this region known for its 12 industrial parks. On Tuesday, the CEB reached out to various companies likely to feel the brunt of the new tariffs.

Latulippe notes that many entrepreneurs are engaged in discussions with American clients, who are raising important questions. Will prices increase? Who will absorb the 25% tariff? Will costs be passed on to American consumers? These uncertainties are stalling contract signings.

The upcoming visit from François Legault on Thursday is seen as a crucial opportunity for local stakeholders. Latulippe plans to address the Prime Minister directly, illustrating the potential catastrophic effects of the customs tariffs on local businesses.

“We aim to raise his awareness regarding our economy, highlight specific needs, and discuss available aid programs,” she adds. Stakeholders also want to emphasize the significance of trade, as 65% of regional companies export to the United States.

A recent survey indicates that 60% of companies in the greater region are considering production cuts if tariffs are enforced. Furthermore, 20% of industries may close shifts, and 5% are contemplating relocating their operations. These statistics are concerning for Marc-Alexandre Brousseau, the president of the Regional Table of Municipal Elected Officials of Chaudière-Appalaches.

“We must prevent this from happening. It’s essential to offer a comprehensive range of solutions to ensure that production remains local and continues to employ our citizens,” asserts Brousseau, the mayor of Thetford-Mines.

Economic activity is vital for the residents of Beauce, as evidenced by the region’s 12 industrial parks and its diverse sectors, including metal, wood, plastic, and textiles. With 250 industries operating in the area, 65% of which export to the United States, the stakes are high. The region also boasts 57 companies in the sawmill and construction sectors and 613 agricultural businesses.

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