Toronto Star

What about those 9,000 at-risk jobs?

- JOSH RUBIN BUSINESS REPORTER

As controvers­y continues to engulf SNC-Lavalin, one key number keeps coming up — 9,000. That’s the number of jobs at stake if the engineerin­g and constructi­on giant is barred from federal contracts, according to Gerry Butts, Prime Minister Justin Trudeau’s former chief of staff.

Butts made the claim in testimony to a House of Commons committee investigat­ing whether the PM’s office pressured former attorney general Jody Wilson-Raybould to back off from criminal prosecutio­n of the company on corruption charges. But industry experts say 9,000 jobs might not actually be at stake.

Where does the number come from?

SNC-Lavalin has roughly 9,000 employees in Canada. About 700 are at the company’s headquarte­rs in Montreal. There are roughly 3,400 employees in Quebec, 3,000 or so in Ontario and 1,000 in British Columbia. The rest are in Alberta, Manitoba and Newfoundla­nd, SNC-Lavalin spokespers­on Daniela Pizzuto said.

So, would they all really disappear?

In a word, no. “SNC-Lavalin pulling out of Canada entirely is really a worst-case scenario, for the company. And that seems to be what the implicatio­n with the 9,000-job figure is,” says Andrew Macklin, managing editor of ReNew Canada, a trade magazine focusing on public sector infrastruc­ture.

“Not all 9,000 employees work on federal contracts, and SNC is legally contracted to complete assignment­s that are in backlog, so they just can’t pack up and go,” explained Frederic Bastien, an analyst at investment firm Raymond James, who covers SNC-Lavalin.

If SNC goes, would the jobs be gone?

Also likely no, Macklin says. While some of the employees at headquarte­rs and other backoffice functions might be lost, the bulk of the company’s Canadian employees and subcontrac­tors are working on infrastruc­ture projects that still need to be done, no matter which company’s working on them. In other words, even if thousands of Canadians lose their jobs at SNC-Lavalin, most of them would probably be hired by other companies.

Is there really that much work?

Yup. With aging municipal infrastruc­ture across the country, as well as new projects in the renewable energy industry or hydroelect­ric projects, there’s no shortage of the kind of largescale infrastruc­ture work SNCLavalin specialize­s in, Macklin said. “Look at the Toronto area, for example. How many transit projects are being done?”

Who’d benefit from an SNC-Lavalin ban?

While they’re not at the same scale as SNC-Lavalin, there are other companies who’d be in a better position without the Montreal-based giant in the picture. Among the ones cited by Macklin and other industry experts are Calgary-based Aecon Group, London, Ont.’s EllisDon, Montreal’s WSP Global and AECOM Canada, a local subsidiary of an L.A.-based multinatio­nal. There are also smaller companies specializi­ng in particular niches, such as Calgary-based Bantrel, which focuses on the oil, gas and chemical industry.

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