Society of Professional Engineers and Associates (SPEA)

Society of Professional Engineers and Associates (SPEA)

May 03, 2012 07:00 ET

SNC-Lavalin Shareholders Stand to Lose Millions

More Bad News for SNC-Lavalin Shareholders as Wholly Owned Subsidiary Candu Energy Risks Losing Lucrative Nuclear Contracts

TORONTO, ONTARIO--(Marketwire - May 3, 2012) - At the annual general meeting of SNC-Lavalin, shareholders learned that their investment in Atomic Energy of Canada Limited (AECL) could be at risk due to the exodus of hundreds of scientists, engineers, technicians and technologists since the sale of the commercial portion of AECL to SNC-Lavalin was announced last June.

"This situation could have been easily avoided," said Michael Ivanco, Vice President of SPEA. "We are in collective bargaining negotiations with Candu Energy. There is a very real possibility that potential contracts in Ontario and elsewhere may be at risk because of management's intransigence." Candu Energy Inc. filed for Conciliation in January 2012 after the first meeting, starting the clock ticking towards a legal strike/lockout position on May 6th, 2012.

"We have tried to work with SNC-Lavalin to resolve outstanding issues but they have been unwilling and uncooperative," said Ivanco. "We need a fair contract to maintain the high level of expertise in CANDU and to attract and retain the qualified young professionals who are essential to serve the future of Ontario."

"Candu Energy Inc. already faces serious skill shortages in key areas and is desperately trying to replace the employees who have left. If the exodus of talent continues, Candu Energy's ability to fulfill their contractual commitments and grow the business will be jeopardized," Ivanco pointed out.

Ontario selected CANDU as its preferred choice for a nuclear reactor new build after an extensive review in 2009. The contract has been put on hold as AECL was put up for sale by the federal government with SNC-Lavalin chosen as the winning bidder. Ron Moleschi, vice-president corporate development and major projects for SNC-Lavalin Nuclear, sees bright days ahead for Candu but, "If you can't build one on your own turf, you can't sell one overseas."

Based on documents released by SNC-Lavalin, projected revenues are anticipated at $100 million annually on an ongoing basis in addition to any new contracts for new CANDUs. "Our members are directly behind these numbers. Without them the company has little value and would not be in a position to capitalize on this potential," noted Ivanco. "It is time shareholders knew this and instruct SNC-Lavalin to stop paying agents millions while squeezing employees for a few dollars," he concluded.

Note to Media:

Representatives of SPEA will be available to the press outside the SNC-Lavalin Annual General Meeting at the Board of Trade building in Toronto beginning at 10:00 AM.

About SPEA

The Society of Professional Engineers and Associates (SPEA) represents engineers, scientists, technologists and tradespeople who collectively represent the majority of Canada's nuclear power design expertise. Currently they are employed by Atomic Energy of Canada but transitioning to Candu Energy a member company of SNC Lavalin Group.

Contact Information

  • Society of Professional Engineers and Associates (SPEA)
    Michelle Duncan
    SPEA External Relations
    (416) 427-3525 (cellular)
    duncanm@spea.ca