Armatec Survivability, a defence contractor that designs and manufactures armour systems for military vehicles, is blaming the domino effect of a stop work order for its decision to temporarily lay off 28 workers.
A company official confirmed to Global News Radio 980 CFPL that the United States Marine Corps issued a stop work order to Science Applications International Corp (SAIC), its prime contractor for a major assault amphibious vehicles upgrade program.
Armatec is subcontracted by SAIC to provide armour for the AAVs.
“Leading up to a stop work order there’s normally some type of communication and discussion. The SAIC people told me that this caught them just as much by surprise as the one they sent to us,” said Rod Flick, director of business development.
The work stoppage could last up to 90 days. Afterwards, the Marine Corps could extend it, remove it, or terminate the contract with SAIC.
“If they extend the work stop then we would continue with a reduced workforce as we are right now,” Flick explained.
“If they remove the work stop, if there was any particular conditions attached to it, if they had negotiated a revised schedule with SAIC, … that could affect the workforce that we would need here.”
Armatec employs roughly 130 people at its operations and 28 positions were impacted. Workers at Armatec are not unionized.
In a company release, Armatec noted that the stop-work order “was not related to any products and services supplied by Armatec Survivability.”
Word of the temporary layoffs follows the layoffs of 28 temporary workers at General Dynamics Land Systems Canada in London on Tuesday.
Flick stressed the two were not related.
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