BRP plans pay freeze amid manufacturing investments

BRP said it intends to invest $118 million in its Valcourt, Quebec, manufacturing activities within the next five years.
Author:
Updated:
Original:

BRP said it intends to invest $118 million in its Valcourt, Quebec, manufacturing activities within the next five years and is implementing a three- to five-year pay freeze for all employees working in manufacturing and in the technical and administrative sectors.

Ultimately, the goal of the planned investments is to keep the plant competitive through modernization and a transformation to optimize its manufacturing infrastructure and logistics.

This modernization process is designed to promote modularity in design, manufacturing and assembly.

“With these investments, BRP aims to provide its Eastern Townships facilities with cutting-edge tools and technologies to further increase its efficiency and its talent in terms of innovation, engineering and manufacturing, all while keeping quality jobs in Quebec,” BRP president and CEO José Boisjoli said in a statement.

BRP said its Valcourt production site will review its work methods to make them more flexible and agile and review the working conditions of its employees in the technical and administrative sectors.

The company said a comprehensive analysis performed as part of the investment project has shown that many BRP employee groups in Quebec have a higher salary than those of competitors in North America or comparable Quebec companies outside Montreal.

Faced with this situation and wanting to maintain quality jobs in the long term, the company announced a three- to five-year pay freeze for all employees working in manufacturing and in the technical and administrative sectors. That represents 60 percent of the BRP staff members that work in Valcourt.

The pay freeze will take effect Feb. 1, when the next fiscal year begins.

“In recent years, globalization and the growing pressure of the competition in our markets have led us to relocate a number of our operations to Mexico. These same factors are urging us today to make an in-depth review of our methods. In order for us to have the necessary agility to remain competitive and consolidate the role of our center of expertise in design, research, development and manufacturing operations in Valcourt, and to ensure that our investments generate the anticipated benefits, they must be accompanied by an overhaul of our working conditions in areas where market deviations are too great,” Boisjoli said.

Related

NMMA Urges Action on E.U. Tariff

The 25 percent retaliatory tariff on American-built boats and engines, resulting in a 42 percent decline in exports to the European Union, is set to double June 1.

Brunswick’s Electrified, Connected Future

During the annual Investors Day, the company revealed its “Next Wave” strategic plan, which includes five electric propulsion products and a new boat brand by 2023.

MasterCraft Delivers Third Consecutive Record Quarter

Net sales, gross profit and net income all saw significant jumps in the third quarter, and the builder raised its fiscal-year outlook.

MRAA Board Contributes to BoatPAC

Every board member contributed to the non-partisan political action committee, which works with congressional members who recognize the importance of boating.

Educator Training Conference Agenda Announced

The ABYC Foundation’s virtual conference is scheduled for July 20-22, with speakers covering a host of topics around creating the future workforce.

RIMTA Awarded $30K Grant

The financial support will go toward its fiberglass boat recycling pilot project.

Sandy Hook Yacht Sales adds Intrepid

The dealership and brokerage firm has six locations in New Jersey and Florida.

Everglades Expands Executive Team

The Edgewater, Fla.-based manufacturer adds positions in finance, sales and marketing and operations.

Heed Caution While Refueling

Ethanol can be back in a big way, and insufficent labeling at the pumps could lead to problems for your marine powerplant. And the MRAA’s voices support for the 30 by 30 initaitive.