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Canadian Solar was looking to automate more of its Guelph plant, says local MPP

But Liz Sandals said she had no notice that layoffs were about to happen at Speedvale Avenue plant
canadian solar

Guelph MPP Liz Sandals said she was aware that Canadian Solar was looking at shifting some of its work from manual labour to automated production lines.

But Sandals said she was not informed of any downsizing of the Guelph plant and has yet to receive any information from the company.

"I was not aware that layoffs were going to happen. I didn't have any advance notice," the MPP said Monday.

Guelph-based Canadian Solar, which at one time reported it employed 700 at its Speedvale Avenue West location, sent a memo to all employees Friday informing them of "a restructuring of our Canadian facilities."

The full text of that memo, acquired by Sandals and distributed to media, is at the bottom of this story.

It is not known how many workers in Guelph will be affected and Canadian Solar has thus far issued no comment or statement on the layoffs.

Guelph Mayor Cam Guthrie said Monday that he too has not heard anything from Canadian Solar.

"We heard about it through the press on the weekend," Guthrie said. "Staff have reached out to Canadian Solar to see if there's anything we can do to assist."

Sandals said she knew the company was looking at improving efficiencies in its manufacturing.

"They're also looking at some of the newer plants in the U.S. being 100 per cent automated. They're not 100 per cent automated so they're looking at some shifts on the line to automated from parts that are manual. I was aware of that," Sandals said Monday morning.

She added that demand for solar panels can be "cyclical" and it's not unusual for Canadian Solar hire to meet that demand then lay off workers when it slows.

"Certainly there's always an up and down of demand and they've always responded to that up and down in terms of hiring and then layoffs. In some ways, that cycle isn't a new issue for them," Sandals said.

Sandals said investments the province and Federal government have made in the past into Canadian Solar were "good investments."

"You have to look at what has happened through those investments. It has helped to build capacity of the manufacturing of solar panels in Ontario. We didn't have that before," Sandals said.

"I think it would be fair to say that they (Canadian Solar) met the expectations of those grants. That the economic conditions have shifted since they entered the fray and I think that they are trying to figure out how to respond to those new economic parametres," Sandals said.

Those parametres include a drop in the price Ontario pays for solar energy and the international trade rulings that ended Ontario-content regulations in the industry.'

"In order to continue to produce it they have to reduce their costs. The price Ontario pays for solar energy is way, way less than what they paid when they entered the market," Sandals said.

Guthrie said the city's Economic Development department is trying to find out more information.

"I'm always concerned with just one layoff, let alone more than one person," the Mayor said.

"I know our local economy remains strong through this, but that's of little comfort to the people I'm most concerned about, who are the workers at Canadian Solar."

Canadian Solar commons shares rose 20 cents in early trading on the NASDAQ stock exchange.

The memo issued to employees that Sandals provided reads as follows:

"To: All Employees

Re: CAMO restructuring announcement

Date: September 16, 2016

On September 15, Canadian Solar announced a restructuring of our Canadian facilities.

We will continue to focus on our Canadian solar farms, specialty projects and MV production, as well as microgrid and international operations. At the same time, there will be a streamlining and subsequent reduction of our PV module manufacturing operations to support our expansion of research and development projects, and specialty markets and customers.

The restructuring affects production team members, to whom we extend our gratitude and respect, and thank for their exemplary service.

A transition centre will be set up to answer questions and assist employees. Further details will be posted at the employee entrance.

Regards,

Gary Robertson

Vice President HR & Administration, Energy Group"

 


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Tony Saxon

About the Author: Tony Saxon

Tony Saxon has had a rich and varied 30 year career as a journalist, an award winning correspondent, columnist, reporter, feature writer and photographer.
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