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Aecom Closes Virden, Estevan Operations

“We must respond to market conditions” – Aecom
Aecom
Aecom closed its Virden operation with no warning on May 8.

The massive building that housed Aecom Production Services on Commonwealth Drive in Virden now sits quiet and lifeless.

The Los Angeles-based company shut down its Virden and Estevan operations abruptly the morning of Tuesday, May 8.

Local supervisors would not return the Virden Empire-Advance’s calls, and an unnamed spokesperson from New York City would only give a terse statement that read:

“The decision to close any field office is not an easy one, however, we must respond to market conditions. We remain committed to our clients and to providing oil and gas services where we see long-term opportunities.”

One former employee, a flow line foreman who did not wish to be named, said the news came as a complete surprise.

Anger

“We were all waiting for road bans to come off and get back to work,” he said. “They called us in for an 8 a.m. staff meeting and we thought it was to tell us we’re going back to work but instead they told us they’re closing.”

The six-year veteran of Aecom said 30 to 35 Virden employees lost their jobs in the shutdown. He’s angry about the way the company handled it.

“They waited for after break-up to tell us; starved us seven weeks with no paycheque. And I just bought a brand new truck.”

He predicts most workers will quickly find other employment in the petroleum sector in the Virden / Elkhorn area.

Work lined up

He said, “Most of us had work already lined up with Aecom’s regular clients like Tundra and Corex. So we’ll bring those clients with us to the next company we work for.”

Pipeline News, Saskatchewan’s petroleum newspaper, wrote in an online article that another firm is stepping into the void:

“As AECOM has withdrawn, a new company, Canadian Plains Energy… has filled the spaces, quite literally, vacated by AECOM.

“Since firing up in early 2017, Canadian Plains has occupied former Carson shops in Carlyle and Alida, and will soon be opening in Halbrite. It also has locations in Virden, North Battleford and Lloydminster.”

Aecom’s website says it earned approximately US$18.2 billion in revenues last year and was named one of Fortune magazine’s ‘Most Admired Companies’ for four years in a row.

However, in its most recent quarterly report, Aecom announced its plans to “sell and exit certain non-core Oil & Gas operations… to accelerate debt reduction.”

The laid-off foreman says all the Virden staff got severance packages.

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