Tenaris confirms 230 layoffs (updated)

Tenaris Algoma Tubes has announced an additional 230 layoffs, essentially shutting down production at the mill for most of November.

This most recent round of layoffs will begin October 30 and workers will not begin to be recalled until the last week of November.

Megan Parlowe, communications representative for Tenaris Algoma Tubes, said a handful of workers will be kept on during the month of November.

“During the downtime, on-going maintenance and investment activity will continue,” said Parlowe.

Global market conditions, such as low oil prices, reduction in drilling activities and high inventory — are having a negative effect across multiple industries, including Tenaris and Essar Steel Algoma, said Parlowe.

“We’re all being hit with the same hand, it seems,” she added.

The union representing production workers held a membership meeting last night.

“Membership passed a motion to do a recognition gift for the laid off [workers] and try and help them purchase some food for Christmas,” said Cody Alexander, president of USW Local 9548.

He said the union will do what it can to help laid-off workers find employment.

“With Essar [layoffs] as well there is not a lot of options. That’s not good for the city, the unemployment rate is skyrocketing,”

Alexander said the company has agreed to maintain benefits for those workers facing layoffs.

“That’s good news for us. We want them taken care of. It’s hard having their benefits switched on and off,” he said.

The following is a news release from Tenaris Algoma Tubes:

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Tenaris announced today that production adjustments will be made at its seamless tubes mill in Sault Ste. Marie, ON over the next month. 

To align production levels with market demand, temporary layoffs will affect approximately 230 employees effective October 30.

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.

Employees will be recalled based on seniority, beginning November 23.

Tenaris is adjusting the production of its facilities to position the company for sustainable and long- term growth in the Canadian market.