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.