WSP Global buys U.S. consulting firm Power Engineers for $1.78B: Employee rights

Canadian engineering firm WSP Global is buying Power Engineers, a U.S.-based consulting firm, for $1.78 billion in cash. This acquisition is part of WSP’s strategy to expand its capabilities in the North American energy sector.

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Details

• Acquisition Details: Montreal-based WSP will acquire Power Engineers, headquartered in Hailey, Idaho, along with its 4,000 employees.
• Strategic Significance: Power Engineers sees over 90% of its revenue coming from repeat business with major utilities. The acquisition is expected to accelerate WSP’s growth.
• Financing the Deal: WSP will finance the acquisition through a mix of new term loans and stock sales. This includes a public offering of subscription receipts worth approximately $500 million, led by CIBC Capital Markets, National Bank Financial, and RBC Dominion Securities. Additionally, WSP will raise $500 million through private placements with major shareholders, including GIC Pte. Ltd, Caisse de dépôt et placement du Québec (CDPQ), British Columbia Investment Management Corp., and a subsidiary of Canada Pension Plan Investment Board.

Executive insights

• Alexandre L’Heureux, WSP’s Chief Executive, described the acquisition as a “transformative step” that positions WSP at the forefront of the energy transition.
• Kim Thomassin, Executive Vice-President at CDPQ, emphasized the transaction’s alignment with WSP’s growing influence in the global power and energy industry, highlighting CDPQ’s $158 million financial commitment.

Who pays severance if WSP doesn’t keep certain Power Engineers employees?

If Power Engineer’s acquisition by WSP results in you losing your job in Canada, then Power Engineers must provide you with full severance pay.

In Canada, the “seller” of the business is responsible for providing proper compensation to staff who lose their job.

WATCH: Employment lawyer Lior Samfiru explains the rights workers have when their employer sells the business on an episode of the Employment Law Show.

If WSP provides you with an employment offer, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), you might be able to get full severance pay from Power Engineers.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
• Employer sold the business in B.C.? Know your rights to severance
• Rights to severance in Alberta when your employer sells the business
• Sale of business in Ontario: Rights to severance

How is severance pay calculated?

Severance for non-unionized employees in Canada can be as much as 24 months’ pay.

This includes individuals working full-time, part-time, or hourly in B.C., Alberta, and Ontario. The amount of compensation you are entitled to is calculated using several factors, including:

To figure out how much you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their severance entitlements.

If your company doesn’t provide you with the correct amount, you have been wrongfully dismissed and should seek legal counsel immediately. Samfiru Tumarkin LLP regularly resolves wrongful dismissal claims and can help you secure proper severance.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages in mass layoffs

Can WSP make major changes to the jobs of Power Engineers employees?

In Canada, non-unionized employees don’t have to accept substantial changes to their job that WSP might try to enforce. Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

When significant adjustments are made to the terms of your employment without your consent, there is a very good chance that you can treat it as a constructive dismissal. In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe that you have been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Changes to your employment in B.C.: Your rights
• Job changes in Alberta: What employees need to know
• Can my employer make changes to my job in Ontario?

New employment contracts for Power Engineers staff

If you work for Power Engineers and you receive a new employment contract, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

• Eliminating past service: The new owner might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The new owner might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

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• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
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Received a job offer? Speak with an employment lawyer

Before accepting a new employment contract, have the experienced employment law team at Samfiru Tumarkin LLP review the agreement to make sure your workplace rights are protected.

Our lawyers in B.C., Alberta, and Ontario have successfully represented tens of thousands of non-unionized individuals.

We can help you better understand the terms of the contract and advise you on how best to navigate the situation.