Palliser to Answer for Layoffs: Manitoba Minister

Manitoba’s governing New Democrats say it will hold Palliser accountable for layoffs after the province provided a $15-million loan guarantee to a company controlled by Arthur DeFehr, whose family founded Palliser.

According to a CBC report, last August’s agreement between the province and investment company Lexington Real Estate Holdings Ltd. included job commitments at the Winnipeg-based furniture company.

In February, Palliser reduced its workforce by about 20 after laying off 40 employees and then hiring 20 into new positions.

Peter Tielmann, president and CEO of parent company Palliser Furniture Holdings, said in a statement that the company is committed to maintaining jobs in Canada.

Palliser produces upholstered furniture and supplies retailers, including its own brand, EQ3. About 60 per cent of its manufacturing output is exported to the United States, underscoring its exposure to American trade policy.