Shermag consolidates upholstery operations

SHERBROOKE, Quebec – Shermag Inc. announced in early December that it will close its Saint-Léonard, Québec factory and consolidate its upholstery operations at the Jaymar facility in Terrebonne, Québec.

The closure is scheduled for March 3, 2006 and affects approximately 70 employees at the Saint-Léonard facility.

The company also confirmed the recent negotiation of a five-year extension to the collective agreement with workers at its Terrebonne factory.

Originally scheduled to terminate in December 2006, the contract was modified and extended through December 2011. The renegotiated agreement provides the flexibility for Shermag’s new ‘made-to-order’ manufacturing model, being implemented across the company’s domestic facilities.

In the last 18 months, long-term contracts have been signed at nine factories confirming the support of over 1,200 workers for the company’s vision to differentiate itself by providing consumers with choice and speed.

“The support of our Terrebonne employees and the consolidation of our upholstery operations are milestones in our plan to transform Shermag and competitively face a difficult environment brought about by the devaluation of the US dollar. We are fully aware that this transformation requires difficult decisions and we remain committed to enhancing shareholder value by creating a more efficient, customer-focused company,” stated Shermag president and chief executive Jeff Casselman.