The union representing workers at furniture manufacturer Prepac Manufacturing Ltd. says the Delta-based company is set to cut more than 170 jobs at its local manufacturing facility by May.
A March 11 release from Unifor Local 114 claims the company will cease manufacturing at its Delta plant this Friday and move operations to its North Carolina facility.
Unifor national president Lana Payne claimed in the release the employer is using trade instability as an excuse to move production south of the border.
Prepac CEO Nick Bozikis told BIV in an email the decision to move operations to the North Carolina facility took several months of analysis and began before any tariff risks came up.
Bozikis says the last few years have been challenging for furniture manufacturers in North America, and the closure of the Delta facility is a necessary step that reflects the realities of the company and its prospects in the future.
The majority of the company's demand comes from the eastern U.S., with its North Carolina facility being better positioned to service demand, said Bozikis.
Prepac opened its Delta facility in 2005 and was acquired in 2019 for $199 million by private equity firm TorQuest Partners.
Prepac’s North Carolina facility opened in 2021, incorporating manufacturing, warehousing and distribution.
Unifor western regional director Gavin McGarrigle said in the release the union will be calling for the boycott of Prepac products across Canada. He said the move is a slap in the face to Canadian workers and consumers.
"We are committed to supporting a smooth transition for all impacted employees," said Bozikis in the email. "This decision was in no way a reflection on the quality of our B.C. team.”
With files from Tyler Orton
