B.C. company claims tariffs are not 2 blame for shifting entire operations to the U.S.
A furniture company that has been in British Columbia for almost 50 years is packing up and relocating to the United States,which will result in 170 job losses.
Prepac Manufacturing is relocating all of its operations to its North Carolina facility and closing its Delta plant.
Although the corporation maintains that it is not,the employees’ union feels that the Donald Trump tariff battle is at least partially to blame.
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According to Gavin McGarrigle, Unifor’s Western Regional Director,”we’ve been in bargaining all of last year through many months of negotiations,”he told Global News.
We came to an agreement in the middle of December,and barely sixty days later,we were unaware that they intended to depart.The Trump administration’s arrival,the instability these tariff threats induced,and the fact that this private hedge fund is now using the chance to desert Canadian workers and the individuals who created the company’s worth are the only things that have changed.
“The decision to centralize production into their North Carolina facility was the result of many months of consideration and analysis, and it began long before any tariff risks to Prepac’s business arose,” said Nick Bozikis, CEO of Prepac, in a statement to Global News.
With overall demand being lower than when we built the North Carolina facility in 2021, the past several years have been difficult for North American furniture manufacturers. Our Delta, British Columbia facility’s shutdown is a necessary measure that takes into account both Prepac’s current situation and its future potential.
Bozikis went on to say that although they are proud of their Delta background,the North Carolina location is situated significantly closer to the East Coast,which accounts for roughly 70% of their clientele.
He declared,We are dedicated to facilitating a seamless transition for all affected employees.
The caliber of our B.C. team was not in any way reflected in this decision.