Tenaris Algoma Tubes management met this afternoon with rank-and-file hourly workers at their Sault Ste. Marie plant, advising them of 230 temporary layoffs.
Steelworkers Local 9548 tells SooToday that roughly half of the workers will be laid off on Friday.
The other half will remain on the job for an additional four shifts to finish remaining stock.
They will be laid off at the end of next week.
Union and company officials have been meeting this week to jointly plan the downtime.
A further meeting will be held in early March to review the situation.
The plant will be left with little more than a “rat patrol” of approximately eight electrical maintenance workers.
“This shouldn’t be taken as an indication that the plant is shutting,” Cody Alexander, Local 9548 president, tells SooToday.
“They have definitely been continuing to invest in this plant over the last 14 months.”
“Their goal is, once this thing is over, they’re going to dive into the Canadian market.”
The Local 9548 executive will use the downtime to work on the Chinese steel-dumping issue, which Alexander says is a major concern at the tube mill.
Local 9548 representatives will be traveling to Hamilton this weekend for what’s expected to be a large Stand Up For Steel rally.
Asked by SooToday about the status of the company's non-union office workers, Laura Chatel, a company spokesperson, said that today's announcement involved only union employees.
The following is a press release from Tenaris Algoma Tubes:
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Production Adjustments at TenarisAlgomaTubes
Tenaris announced today that production adjustments will be made at its seamless tubes mill in Sault Ste. Marie, ON.
To align production levels with market demand, temporary layoffs will affect approximately 230 employees with staggered effective dates between February 1 to February 8, 2016.
Production levels for TenarisAlgomaTubes are determined by the demand of the North American oil and gas industry.
The persistent low price of oil and consequential reduction in drilling activity, along with unfairly traded imports of OCTG (oil country tubular goods) and line pipe, including corresponding high inventories of these products, have driven Tenaris to make this decision.
Tenaris has communicated to employees and informed the Union, in accordance with the Collective Agreement in place.
Tenaris is adjusting the production of its facilities to position the company for sustainable and long- term growth in the Canadian market.
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