Transmission CVTCORP Layoffs: A Precarious Situation for the Co-Owned Company

2023-08-03 04:00:00

A company in a precarious situation, co-owned by the co-founder of the CAQ, Charles Sirois, in which the government has invested $8 million, has just laid off 25 employees.

This is what we learn in a recent dismissal notice from the Ministry of Employment.

The 25 employees lost their livelihood on July 7 in the workshop of the mechanical transmission SME in Sainte-Julie, in Montérégie, we can read.

That would be more than half of the workers if we rely on the Quebec enterprise registrar, which mentions that Transmission CVTCORP has between “26 and 49” employees.

Argent public

In January 2020, Transmission CVTCORP had a $5 million equity investment from Quebec for an $11.3 million project that was to “create 27 well-paying jobs,” in the words of the company.

“We are proud to participate in the realization of a job-creating project,” welcomed Christian Dubé, then minister responsible for the Montérégie region, in a press release.

“Thanks to this innovative and promising project, CVTCORP is ensuring its long-term growth,” said Economy Minister Pierre Fitzgibbon.

Another aid of $3 million (a loan) was granted to him ten months later.

At the back of the building, you can see vehicles equipped with CVTCORP technology. Photo Francis Halin

Worried workers

On Wednesday, workers from the MRC de Marguerite-D’Youville workshop encountered by The newspaper said recent layoffs have hurt morale.

Some cited a certain economic slowdown to explain the layoffs.

Others did not want to come forward, but felt sad for those who have given their heart and soul to the SME in recent years.

The newspaper was unable to obtain an interview with Transmission CVTCORP, despite our repeated requests.

Telesystem Ltd, which is its first (non-majority) shareholder, did not respond to our requests either.

The second shareholder of Transmission CVTCORP is FONDS ID SEC and its third, FONDS CYCLE CAPITAL I, SEC

-With the collaboration of Sylvain Larocque

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#SME #cofounder #CAQ #lays #employees

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