The federal government is set to privatize the Canadian Photonics Fabrication Centre (CPFC), leaving dozens of workers in uncertainty around their unions and pensions. On May 4, the government announced a “spinning-off” of the facility to the private sector, aiming to “scale CPFC’s operations, expand the Canadian supply chain of photonic manufacturing capabilities and provide more effective and timely services to fast-growing, innovative Canadian small and medium-sized enterprises.”
Background of the Facility
The semiconductor foundry is at the cutting edge of new chip innovations and is specialized to “make and test compound semiconductor wafers” as companies and nation-states race towards a new frontier of technologic innovation. The semiconductors are chips essential for emergent and scaling technologies like artificial intelligence and quantum. The innovation at the heart of the research facility is the use of photons, or light particles, which are faster and often less energy-intensive than older era chips that use electrons. “Because photons travel at the speed of light, photonic devices are essential for building faster and more efficient internet, computing and communications technologies,” a federal government website said.
Impact on Workers
The future of the workers is uncertain as the National Research Council confirmed that public servants working at the facility will transition to “private-sector employees.” Bernard Holbrook, president of the Research Council Employees’ Association (RCEA), told the Ottawa Citizen that around 78 workers are affected. Approximately 49 members of the RCEA, 25 members at the Professional Institute of the Public Service of Canada (PIPSC), and four managers are caught up in the spinning-off. PIPSC declined to comment, citing the need for more details from the employer over the nature of the private partnership and the future of the worker’s conditions.
Union Status
Holbrook said that it is typical for workers to “lose your union representation” once a facility is privatized. The National Research Council confirmed with the Ottawa Citizen that it will be the first time in its history that one of its facilities will be spun-off into a for-profit entity. In a statement, the National Research Council said that the “CPFC is to be spun off into a private-sector corporation” that will ultimately “determine who is hired and the terms and conditions of employment.”
Pension Concerns
Workers also face questions about the public service pension fund. The transition to private-sector employment typically means leaving the public service pension plan, though details remain unclear. The federal government has previously moved a $900-million surplus out of the Public Service Pension Fund, raising further concerns about the security of retirement benefits for affected employees.
The privatization of the CPFC marks a significant shift in federal research operations, with implications for Canada’s position in the global photonics industry. As the process moves forward, workers and their unions await further clarity on employment terms and benefits.
