Nobody wanted to hear this I have gone through this several times at the mines (1984 and 1992) its not a lot of fun very tough on young families especially. When I spoke about this possibility a few council meetings back I was accused of fear mongering!
No fear mongering, just a combination of being around the coal industry all my life, going through mine closures and layoffs myself, watching the downturn in the steel industry and just plain common sense.
January 8, 2009
Teck Announces Global Workforce Reduction of 13% and 2009 Coal Production Plan
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 8, 2009) - Teck Cominco Limited (TSX: TCK.A and TCK.B, NYSE: TCK) today announced that it will reduce its global workforce by about 1,400 positions, or 13%, as part of its broader strategy to reduce costs and bolster competitiveness in the face of persistently weak commodity prices. The workforce reduction is expected to generate annual savings of approximately $85 million. Teck also said it plans to reduce coal production in 2009 to 20 million tonnes due to declining global steel demand.Each strategic business unit is adjusting personnel levels to protect operating margins given difficult commodity markets. The company is also significantly reducing staff and contractors associated with exploration activities and research and development. Finally, the workforce reductions will eliminate redundancies at the corporate level created by Teck's recent acquisition of Fording Canadian Coal Trust's assets."Given continued economic uncertainty, a significant reduction in our workforce is needed to further reduce costs and position Teck for both short and long-term competitiveness," said Don Lindsay, President and CEO. "Notwithstanding the substantial decline in commodity prices, this was a difficult decision and I want to thank the affected employees for their contributions to the company."In total, about 1,000 employee and 400 contractor positions will be eliminated by the end of 2009, with the majority of the reductions to be completed in the first quarter. Teck expects to take a charge of approximately $35 million in the first quarter for severance and other related costs associated with this reduction.
1 comment:
This is terribly sad, but not surprising. Teck epitomizes the recent trend of global corporations swallowing up smaller ones and then chopping the workforce in order to make ends meet. This is an on going trend that enriches the well to do at the expense of the working man/woman.
I'm not saying that commodity prices didn't have something to do with it. What I am saying, is it sure makes for a 'good excuse' to justify subsequent actions. Doesn't it?
"... this was a difficult decision and I want to thank the affected employees for their contributions to the company."
Ya, right! I’m sure the employees were the last thing on their minds when they did their acquisition/takeover. Correction: For those who saw the movie Wall Street, you may remember, getting rid of many of the employees, while selling off the company's assets was what made the deal so appealing to Greko. So it actually was a primary consideration, rather than a consequence. Who says the recent takeover by Teck is not along the same line?
Post a Comment