Essar temporary layoffs reach 500

With more temporary layoffs announced this week, the total number of hourly workers off the job at Essar Steel Algoma has reached 500, says the steelmaker's manager of corporate communications, Brenda Stenta.

"As several projects across the steelworks come to a close and production levels remain below capacity, additional temporary layoffs were announced this week," said Essar Steel Algoma manager of corporate communications Brenda Stenta. "We continue to do everything possible to keep people working during these difficult times."

On Monday, the Sault Star reported that layoffs at Essar had reached 360.

Then another 50 were announced to staff on Tuesday.

With 90 more laid off this week, this week's total is now at 140 layoffs.

Yesterday, the Wall Street Journal reported tthat steel prices in India have stabilized and could be expected to rise moderately in the near future.

The newspaper quoted industry officials saying that auto makers in India have reported sales growth in February and March.

"I think there is a stabilization of steel prices," Jatindar Mehra, chief executive officer of Essar Steel Holdings Ltd. told the newspaper. "There is no pressure on prices as of now.... We will have to watch whether the demand is rising."

North America, however, is a different story.

General Motors Canada and its labour unions recently reached a wage- and benefit-slashing deal, but Ford says that deal is still too expensive.

Ford says it doesn't go far enough in slashing legacy costs for retired workers.

Ford also says that deal would cost Ford $10 an hour more in labour to build a car in Canada than in the United States.

The Canadian Auto Workers are currently in negotiations with Chrysler Canada and are expected to be at the table with Ford soon.

The union reopened the collective bargaining agreements to help the struggling automakers qualify for emergency loans from the governments of Canada and the province of Ontario.

Stenta says Essar Steel Algoma is adjusting its workforce to fit the demand as effectively as it can while still trying to minimize the impacts of reduced production on its workers and the community at large.

"Essar is concerned about the impact of layoffs on employees and their families and we are offering a variety of support services to help them through this difficult time," she said today. "We look forward to welcoming them back as order volumes improve."

Stenta also said it's important to remember staff levels fluctuate with production on a weekly basis.