PotashCorp layoffs devastate mine workers in Saskatchewan

Watch the video above: reaction to mass layoffs announced by PotashCorp on Tuesday

SASKATOON – More than a thousand mine workers were left blindsided Tuesday morning when the world’s largest potash producer formally announced it would be slashing its workforce by 18 per cent.

About 440 people were laid off in Saskatchewan at Potashcorp’s Lanigan and Cory mine sites along at its head office in Saskatoon.

“5:30 this morning I got a call as I was heading out for coffee before I went to work…and there was a call from one of the people at the mine saying I don’t have to come in today because my position has been terminated,” recalled Ken Manyk.

Manyk had been working at the Lanigan PotashCorp facility for the last two years.

The mine has been a major source of economic nourishment for the modestly sized town of 1,400 and surrounding communities.

“There’s 250 guys looking for a job in this area. There ain’t that many jobs here. You might find a job at minimum wage, but raising a family – you’re not going to make it on that,” he told Global News.

He says the timing simply couldn’t be worse.

“One of my kids that’s grown up now – she already phoned me. She said ‘Dad I heard about it. Did you make the cut?’ I told her no. She said ‘you know what, you don’t have to buy me a Christmas present this year.’ That’s pretty nice of her.”

In a statement, PotashCorp said demand from developing markets, including China and India, has been sluggish. The average realized price for potash was $307 per tonne during the third quarter, down sharply from the same period during the previous year.

Read more: PotashCorp slashes hundreds of jobs; biggest hits in Saskatchewan, N.B., Florida

Despite this, the company says it remains confident when it comes to the long-term drivers of the business.

“The changes are intended to optimize our lowest-cost operations, while retaining the ability to respond to expected demand levels and product needs of our customers,” the Saskatoon-based company said in a statement issued Tuesday.

Senior director of public affairs for the company, Bill Johnson, says that while the decision was not an easy one to make, it was a necessary one.

“We’re producing roughly the same amount of potash we were five years ago. We just have more employees doing it right now and what we needed to do was trim the workforce a little bit,” he said.

That workforce trim is equivalent to 1,045 positions.

About 130 people were affected in New Brunswick, 350 workers felt the impact in Florida. North Carolina and the Caribbean nation of Trinidad also saw layoffs.

DYI: Five things to know about potash in Saskatchewan

“What we’re currently concerned with is what we can do with our membership. Try to save some jobs if we can some more would be great – and we’re working on a deal for layoffs, seniority-wise,” said Local 922 Unifor president Rick Suchy.

The union represents workers at the Lanigan mine site.

Revenue from potash currently accounts for 3.5 per cent of Saskatchewan’s $11 billion budget. About 95 per cent of all goods produced in the province directly depend on basic resources, including oil and gas, uranium and potash.

Premier Brad Wall spoke with reporters in Regina on Tuesday and says that continuing to diversify the provincial economy will be crucial going forward.

Read more: Saskatchewan government responds to PotashCorp layoffs

“We have a number of cylinders in this economic engine and oil is comparatively strong. And uranium – we see Cigar Lake is going to reopen, we see in the ag sector the best harvest we’ve ever had,” he said.

Wall also indicated that the province had been in touch with BHP Billiton and K+S. He says both companies remain committed to their Saskatchewan operations and believe the fundamentals are in place for long-term growth.