Oil issues cause local layoffs

Photo: Bill Everitt

Britco has laid off 39 per cent of their workforce in the past few months.

The recent slow down in the Alberta oil patch is being blamed for a run of layoffs at Britco in Penticton.

In the past couple of months, 60 people have been laid off at the modular building construction facility on Government Avenue.

Sixty people accounts for 39 per cent of Britco's local workforce.

"We are experiencing a slow down as a result of the oil and gas industry," said Leigh Ann Shoji-Lee, vice president of shared services with Britco in Langley. Shoji-Lee also noted that Britco's competition is having similar issues.

"It's not all just oil and gas, but we're finished with all dorms for oil and gas projects out of Fort McMurray," she said.  

"We're hopeful that we can bring them back, but it all depends on work coming in and there are definitely cascading effects from just the price of oil."

Penticton Mayor Andrew Jakubeit said any job loss, no matter the number, hurts Penticton.

"Hopefully the slowdown is short lived and those affected can quickly get back to work," said Jakubeit. "We are fortunate that our niche manufacturing sector is not solely tied to oil and gas, but it certainly is a large direct and indirect segment of the economy. 

These ripple effects of the storm hopefully will pass soon."

Many recent projects for Britco have been constructing workforce accommodations for the oil and gas industry. 

Shoji-Lee said they also have a contract with Manitoba Hydro, but that has not yet been finalized. 

Britco has been known to do other work outside of the oil and gas industry, such as schools, offices, residential complexes, restaurants and even banks. 

Asked whether this is the end of the cuts, Shoji-Lee said she couldn't be certain.

"We are looking at other industries to bid on work and hopefully win work to fill the plants," Shoji-Lee said. "If we get a project tomorrow, it might be different - but we have to look at (bringing people back) in terms of orders and manage accordingly, so it's hard to say."

There have also been layoffs at the Britco plant in Edmonton. 

Shoji-Lee said Britco is appreciative of the support it receives from the Penticton community.