New Tenaris cuts hit office, administrative staff

The past week brought still more bad news for Canadian Tenaris employees.

Tenaris Algoma Tubes hasn't confirmed it, but SooToday has learned from multiple sources that approximately 25 local salaried employees were laid off on Wednesday, affecting office and administrative staff.

The layoff notices follow 510 earlier layoffs announced by Tenaris Algoma Tubes since last December, bringing the cumulative total to 535.

Previous announcements from the company have cited low demand in the North American oil and gas industry.

Megan Parlowe, communication representative for Tenaris Algoma Tubes, told SooToday last Thursday that the local plant still expects to return to production in May.

On Thursday, Tenaris announced that it's temporarily halting production at its Prudential welded pipe mill in Calgary.

The company issued the following statement about the Calgary layoffs, which affect 120 employees.

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Tenaris to temporarily interrupt production at Prudential

Tenaris announced that production at Prudential, a welded pipe mill producing OCTG and line pipe products in Calgary, Alberta, will be temporarily interrupted while existing inventories work through the market.

The mill will be kept in operational condition to facilitate a restart when market demand improves.

Layoffs resulting from the decision will affect 120 employees for an undefined period, effective July 31.

Production levels for Prudential are determined by the demand of the North American oil and gas industry.

Unfairly traded imports of OCTG (oil country tubular goods) and line pipe, and corresponding high inventories of these products along with the persistent low price of oil and consequential reduction in drilling activity, have driven Tenaris to make this decision.

While the recent injury finding made by the Canadian International Trade Tribunal against dumped OCTG from nine countries should assist market improvement, imports of unfairly traded line pipe will continue to be a problem.

Tenaris has communicated to the employees as quickly as possible and has informed the union, in accordance with the collective agreement in place.

Tenaris will recall unionized and non-unionized employees at a level that matches market demand as conditions improve.

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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