Saskatchewan trailer manufacturer Doepker Industries is expected to rescind layoff notices that were issued late last year to 48 employees at the company’s manufacturing facility in Moose Jaw, Sask.
Branch manager Marcel Doepker said the company has received verbal confirmation that its application to a federal work sharing program has been approved.
Approval of the application would enable the company to rescind layoff notices and keep all employees on the payroll, despite reductions in sales and production.
The work sharing program, part of the federal government’s economic stimulus package announced last spring, was designed to help Canadian employers avoid temporary layoffs during the economic recession.
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Under the program, the federal government provides income support to employees who face a temporary reduction in hours.
By temporarily subsidizing payroll costs, the program allows companies to retain skilled workers and avoid costs associated with recruiting and retraining new workers.
Doepker employs about 100 workers at its Moose Jaw facility.
“Verbally, we’ve got confirmation that it (the application) has been accepted,” Doepker said.
“We’re just trying to get all the signatures and paperwork done and once we’ve got everything in order, then we can review (the situation) and hopefully rescind all the notices.”
The company went through a similar process last year after layoff notices were issued to 25 employees, Doepker added.
“We’ve been through this before so hopefully everything goes well.”
The market for North American truck trailers has declined significantly during the past few years.
According to Trailer Body Builders magazine, the 30 largest trailer manufacturers in North America produced roughly 152,000 truck trailer units in 2008, compared to 218,000 in 2007 and 283,000 in 2006.
That’s a reduction of nearly 46 percent over two years.
Doepker said trailer sales were also weak in 2009, although demand for agricultural trailers was relatively strong.
“The grain side was fairly strong, but all other sectors were fairly slow,” he said.
Doepker Industries manufactures grain trailers, dump trailers, flat decks and trailers for the logging and oilfield industries.
The company built 1,200 units in 2008, down 40 percent from the previous year.
The company’s other manufacturing facilities are located in Humboldt, Sask., and Anaheim, Sask.
