Lion tells temporarily laid off employees they won't get their 'vacation pay'

The manufacturer Lion Électrique, sheltered from its creditors, has just written to its employees this Friday to remind them that they will not have their vacation pay if they have been temporarily laid off.

“As long as you are on temporary layoff, you will not receive payment for any accumulated vacation balance,” indicates Lion in a letter sent to its employees on December 20.

After the 150 laid off last year, the 100 last February, the 120 in April, the 350 in July and the 400 temporarily laid off this month, Lion is trying to reassure its 300 remaining employees as well as those who were recently let go .

More layoffs?

Even if she confirms that “other layoffs during the procedures under the Companies' Creditors Arrangement Act (CCAA) may be necessary,” Lion explains to them concretely what awaits them.

In its missive, the Quebec company agrees “that this is a troubled time” and that “management cannot be certain of the final result for Lion”.

While some 400 workers were just temporarily let go this month, the company stresses that it will work with Deloitte to determine “the best approach” if the temporary cuts become permanent.

Complaint in the United States

The Canada Wage Earner Protection Program (WPP) could be one avenue.

Lion also points out that it is not “bankrupt”, but rather under the protection of the LACC, which will help it “undertake restructuring measures in a stable and structured environment”.

This month, a lawsuit was filed by a group of U.S. employees for unpaid wages and the defendants (Lion USA and others) are reviewing their claims, according to recent court documents.

«[Dans] the complaint filed in California, [on] seeks, among other things, unpaid wages, damages, reasonable attorneys' fees and any other relief that the court may deem appropriate, the amount of which has not yet been established.” read.