Headwinds at LM Wind Power

About 600 people worked at the blade factory before the wave of layoffs and furloughs.

Several layoffs and suspensions have taken place at LM Wind Power. The news was reported this morning by Radio-Gaspésie.

According to our information, at least twenty people in total were affected, including directors, managers and supervisors. Eleven floor employees were also targeted, confirms the union affiliated with the CSN. Their suspensions range from a few days to a few months. The union intends to file grievances to contest these suspensions. The case should be heard later in arbitration.

"We do not agree and we will defend the employees as we should. The employer has reasons that we contest and the legal process will begin. This is unacceptable to us," summarizes the CSN spokesperson and advisor on the case for 7 years at LM Wind Power, Christian Beaulieu. The latter wants to clarify that there are no dismissals on the blue-collar side and that these are indeed suspensions; that the employment relationship is maintained. Members of the management affected - including the plant manager - have reportedly been thanked.

Failure at sea

If the axe has fallen, it is not unrelated to the collapse in the open sea of ​​a 107-metre blade in July off Nantucket, on the American East Coast, at the Vineyard Wind 1 offshore wind farm.

Yesterday, during the presentation of the third-quarter financial results of GE Vernova – the owner of the Gaspé plant – CEO Scott Strazik confirmed that the failure was due to a manufacturing deviation at the Gaspé plant. “We should have identified it through the inspection or quality assurance process,” he said in July. The approximately 150 107-metre blades that had been manufactured were completely re-inspected.

The problem was unfortunately not isolated. Other quality tests showed similar defects on less than 10% of the blades ( a low-single digit proportion ). The failure was caused by the adhesive glue that holds the fiberglass together. American media Bloomberg reports that the event generated a charge of $700 million in lost contracts. Some wind turbines already installed on the high seas will have to be replaced. Others will be secured. "We are proactively reinforcing certain blades, either in the factory or in the field, to improve their quality and ensure their useful life," explains Scott Strazik.

It should be recalled that the blade failure in July led to the temporary suspension of activities at the Vineyard Wind 1 site. The US Bureau of Safety and Environmental Enforcement ordered a temporary halt to operations and the suspension of construction work while the situation was being investigated.

Falsified tests?

According to Radio-Gaspésie, the dismissals and suspensions at the LM Wind Power plant in Gaspé are the result of a data falsification scheme. An internal investigation conducted by GE Vernova lawyers reportedly showed that quality tests were falsified at the request of management. Gaspésie Nouvelles was unable to confirm this information. One thing is certain: GE Vernova executives were on site earlier this week and held a special meeting with employees to address the situation. The future of the plant is not at risk, but comments are rather rare. Neither local management, nor the mayor of Gaspé, nor the MNA for Gaspé responded to our interview requests.

CEO Scott Strazik said the past four months have been tough for offshore wind, with "significant losses" for GE Vernova.

In 2021, Ottawa and Quebec announced loans of up to $25 million and $29 million respectively for a major expansion of the Gaspé plant valued at $170 million, in order to manufacture these gigantic 107-metre blades and create nearly 200 additional jobs. About 600 people worked at the blade plant before the wave of layoffs and furloughs.