Quebec truck manufacturer to lay off 175 workers over economic uncertainty from tariffs

Paccar, a truck manufacturer that operates a plant in Sainte-Thérèse, Que., is laying off at least 175 workers next month. 

The factory's management announced the layoffs, which will take place Aug. 4. Unifor, the union that represents the workers at the plant, confirmed the cuts. 

The layoffs come in addition to 250 job losses in December. They are in part tied to U.S. tariffs and economic uncertainty. A portion of Paccar's Quebec production will be transferred to the United States. 

The Sainte-Thérèse plant has the capacity to produce 90 trucks per day but was down to 60 per day at the end of June and will drop further to 50 per day in August. 

At the moment, Paccar's trucks are exempt from a 25 per cent American tariff on finished vehicles and auto parts coming from Canada. But Paccar appears to be positioning itself in case the Trump administration changes its mind. 

Christian Charron, the mayor of Sainte-Thérèse, said he's worried about how the layoffs and current economic situation will affect the town. 

"First of all, we're thinking about the workers who are losing their jobs. We're also worried about the future," he said.

"It's Sainte-Thérèse's most important company in our industrial park.…Obviously, all this uncertainty is very bad for the economy.

Daniel Cloutier, Quebec director of Unifor, said Canada needs stronger protections in place to protect local manufacturing. 

"This announcement clearly demonstrates the urgent need for Canada to adopt a much more ambitious local purchasing policy. In such an uncertain economic context, we absolutely must give priority to products made here," he said.