MONTREAL -- Without a new government boost, the face of the manufacturing sector will likely be considerably transformed following the three-week break Quebec ordered to limit the spread of the new coronavirus, according to industry estimates.
Though it “understands” the difficult decision made by the Legault government, Manufacturier et Exportateurs du Quebec (MEQ), which represents some 23,000 companies that employ more than 500,000 workers, hopes “for further assistance measures to enable Quebec companies to survive.”
MEQ president and CEO Véronique Proulx spoke of direct aid such as subsidies as well as tax breaks in addition to the $2.5 billion emergency plan unveiled last week, which notably offers loan guarantees.
“Some parties have loans with the government,” said Proulx. “Could companies in difficulty convert these loans into grants?”
In order to curb the increase in the number of new cases of COVID-19, Quebec has decreed the closure, no later than midnight Tuesday, of all businesses deemed non-essential, until Apr. 13. This means that tens of thousands, and possibly hundreds of thousands, of workers will find themselves on forced leave.
There are, however, several exceptions to this measure including grocery stores, pharmacies, fire fighters, police and of course health services.
According to the official list of manufacturing activities deemed essential, published early Monday evening, the manufacture of medical instruments, sanitary products, chemicals and microelectronics components will be exempt.
The production of food and all “necessary inputs” to other essential sectors is also on the government's list. Manufacturing and maintenance activities for the defence sector are also part of the package.
As for industrial and mining complexes, such as the aluminium sector, they are ordered to reduce their activities to the bare minimum.
The Aluminium Association of Canada (AAC) welcomed this decision, noting that the tanks “must be operated on a continuous basis to prevent the metal from hardening in them.”
“The maintenance of our essential activities will be done by applying the best hygiene practices in the circumstances and all the recommendations of Public Health, in order to ensure our employees and their families, a safe working environment at all moment,” a statement said.
According to the AAC, which represents Aloca, Alouette and Rio Tinto, the production of primary aluminium employs nearly 8,000 people in Quebec.
As for Bombardier, everything points to a halt in the production of business jets in Quebec and Ontario, where similar closures were ordered on Monday.
According to an internal memo sent by the president of Bombardier Aviation, all non-essential activities will end on Tuesday, just before midnight, in the two provinces. However, the company did not officially announce it.
While companies were still waiting for the government list late Monday afternoon, several companies in the manufacturing and industrial sectors contacted by The Canadian Press had no clear answer to offer in the wake of the Legault government's announcement.
At the recreational vehicle manufacturer BRP, an attempt was made in the afternoon to gather “more details from the authorities,” said spokesperson Elaine Arsenault.
“However, we are aware that BRP is not considered to be a core business and we will comply with this directive,” she said.
In Quebec, the multinational company has some 2,000 employees, most of whom are located in its Valcourt facilities. Some, however, telecommute.
For its part, the flight simulator and training specialist CAE revealed on Monday that the company had sent notices of 465 temporary layoffs. However, this number could turn out to be higher due to the Legault government's decision.
In a press release, Cascades, which notably manufactures toilet paper and packaging, said that it ensured the “continuity” of its activities.
This report by The Canadian Press was first published Mar. 23, 2020.
