Around 100 steelworkers at the Evraz North America plant in Regina are going to be laid off, the workers’ union confirmed.
“We had a meeting with the company Friday and they advised us there’s going to be a cutback on the pipe side of the plant laying off approximately 100 employees,” said USW 5890 acting president Ryan Mckenzie.
Mckenzie said the company has advised the union the layoffs come amid increased international competition.
“Inventory levels for the customers they do have, rising interest rates, they’re worried about softening of steel prices, and a lot of foreign pipe in the market that’s undercutting what they’re doing,” Mckenzie said.
Evraz North America (ENA) confirmed the layoffs in an emailed statement, meanwhile, and laid blame on what it calls ‘unfair’ steel imports.
In a statement, a company spokesperson said “unfairly traded imports continue to negatively impact its Canadian operations. High volumes of cheap imports are flooding the Canadian market, making it difficult to compete for business.”
“Due to these imports, and starting next month, ENA will make production adjustments that will regrettably result in layoffs at its Canadian facilities.”
Speaking from Calgary, Evraz Canada senior vice-president Michael Yeats said the layoffs will affect workers at the company’s pipe mills in Camrose, Alta.
“A lot of those imports are being sold below our cost which is making it very difficult to compete in the domestic steel industry,” Yeats said.
“We can expect in Regina we’re going to have over 100 people impacted by this and in Camrose likely over 30 people.”
Yeats added the layoffs will leave pipe-making operations at a “bare minimum” at the plant in Regina.
Mckenzie said these layoffs, which follow several other announcements of labour reduction at the plant, will likely leave only “20-25 individuals” working in the pipe-making side of the plant.
Mckenzie said this latest round will affect workers who have been employed at the plant for several years, some for over a decade.
“The company determines staffing levels, we can’t dictate to the company, but yeah it’s always frustrating to see your members laid off, especially now in the economic conditions. It’s never easy for people, now especially,” Mckenzie said.
He said the union is scheduled to meet with the company this week for further discussions.