BONNYVILLE – Just five months after the Mullen Group Ltd. purchased B&R Eckel’s, severance packages for some employees have started to come down the pipe.
Murray Mullen, the Senior Executive Officer and President of Mullen Group Ltd., told Lakeland This Week, that the company was always aware that changes would have to be made when they acquired the Bonnyville-based company back in May.
"If we can't find a job for them, I'll settle up with them and I'll provide the appropriate severance packages. It's not the people's fault," stated Mullen.
Roughly 12 per cent of B&R positions will be lost across the network, which may have come as a surprise for some after the former owners expressed a transition hinged on employee retention. The impact of the restructuring will affect about 50 employees out of the roughly 420 employees that work in a network of 16 facilities.
“For now, and into the immediate future, everyone’s role remains the same. It’s business as usual,” reads a letter from the Ringuette family provided to Lakeland This Week on May 1, 2023.
“This was the primary concern of the current management team: proceed with the transaction only if the employees could retain their positions and continue to work for B&R. Anything less was unacceptable.”
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However, the president of Mullen Group acknowledged that in the months following the acquisition redundancies and inefficiencies would have to be addressed.
“We knew that we had to do some things back then, but we spent the last few months trying to work and understand where the business was really at,” said Mullen.
The areas in which B&R performed the weakest will see the most significant changes, specifically its Less-than-truckload (LTL) business. LTL refers to transporting freight that is not a full load, which is typically consumer goods.
According to Mullen, a lack of modern technology played a large role in why B&R Eckel’s LTL service was not profitable and lacked efficiency.
“I'm desperately trying to mitigate the pain to people. It's scary for them. I get it. But these are things that we have to do to make sure we're on a sustainable path for the future. We are a public company, I can't let B&R not be an efficient business,” said Mullen.
LTL services will still be maintained by the overall company, leaving customers unaffected. However, they will be delivered by other subsidiary companies of the Mullen Group, such as Grimshaw Trucking.
Employees working in LTL services and in communities where other Mullen Group subsidiaries are operating, will face the largest impact. This includes locations such as Calgary, Edmonton, Lloydminster and Red Deer where both B&R and the Mullen Group have terminals.
“I just have too many people doing the same thing,” said Mullen, explaining that many drivers and staff will be transferred to a new building – but not all. “I won't have a job for everybody, but they can apply for another job in another part of our company. We are hiring every day.”
A hub for energy services
Mullen said the impact on the B&R Eckel’s Bonnyville location will see the least impact as it is the main hub for servicing the energy industry.
“B&R is best at its core, which is their energy service business. The hauling of drilling rigs, servicing the energy business and servicing all the north,” said Mullen. “That's what they're best at. That's what I want them focused on.”
Mullen said the company’s goal is to continue to invest and grow B&R in a way that will directly serve the energy sector and will continue to be a brand that is synonymous with delivering those services.
“We are going to focus on where we're efficient, because that's how you stay in business long-term – by being the best,” he said.
The B&R Eckel’s head office will also remain in Bonnyville to serve its largest client base.
“We will continue to support the community with good jobs. And we will continue to be a good community leader there,” Mullen said. “We have to tear it down a little bit to rebuild it so it's going to be successful for another 50 years.”
