MONTREAL – We’re still in the early days of the Covid-19 crisis, but some companies are already acting in the face of declining revenues.
The latest is Quebecor, which said it is temporarily laying off 10% of its workforce, which means about 1,000 people are now out of work as of Monday.
The Québec government issued a ministerial order requiring businesses deemed non-essential to close and this is part of the reason Quebecor took this action this morning. The company did say in its statement it will provide support and financial assistance to minimize the impact on its workers.
“Since the beginning of the crisis, the entire Quebecor family has shown solidarity and has been doing its part in this unprecedented situation that affects us all,” said Pierre Karl Péladeau, president and CEO. “The suspension of business activities deemed non-essential has curtailed the operations of many of our business partners and has therefore led to a significant slowdown in some of our business segments, making this difficult decision unavoidable.”
Quebecor, of course, is the largest TV broadcaster in Quebec (Groupe TVA), a large publisher, the largest cable company/ISP and a large wireless company under the Videotron brand in the province, too. The announcement did not say from which divisions the staffing cuts will come.
“At this time, our priority is to protect the health and safety of our employees, while continuing to provide Quebecers with essential telecommunications and news services. In a spirit of loyalty and gratitude to the employees affected by these temporary layoffs, we have moved quickly to put in place a series of financial assistance and support measures to minimize as much as possible the impact of this period of uncertainty,” Péladeau added.
Quebecor’s announcement said it will top up the government assistance to cover 95% of the salary of employees with an annual salary under $54,200. Those employees will also be able to take a two-week advance on their salary to cover the waiting period for government assistance. For employees with a salary of more than $54,200, the Corporation will top up the government assistance to cover 80% of salary, up to a salary ceiling of $80,000. The group insurance and pension plans will be maintained and the employer will continue making contributions if the employee continues to do so, reads its release.
These measures apply to all permanent and temporary employees and come into effect on Monday, March 30 and continue through May 31. “As the situation develops or if there are changes in the government assistance programs, these measures may be harmonized accordingly,” says the release.
For more on the special protection, prevention and support measures Quebecor has put in place for its employees, partners and customers, please click here.
