Job cuts coming at the steel mill

An undetermined number of job losses will occur at Algoma Steel over the next three months, company officials disclosed today. Speaking to reporters in Sault Ste.

An undetermined number of job losses will occur at Algoma Steel over the next three months, company officials disclosed today.

Speaking to reporters in Sault Ste. Marie, President and Chief Executive Officer Denis Turcotte said he was dissatisfied with first-quarter results announced yesterday, indicating that the company's $12.5 million profit would actually have been a $5.4 million loss but for extraordinary items such as a favourable exchange rate on the Canadian dollar and a $4.3 million electric power rebate.

"If it doesn't jingle, it doesn't count," Turcotte said of the paper profit, quoting one of his economics professors.

Turcotte (shown flanked by ASI vice presidents Glen Manchester and Armando Plastino) emphasized several times that any increase in labour costs will result in compensating cutbacks.

For example, the cost of ASI's collective agreements rose $7 million during the first quarter, Turcotte said, adding that "we have to compensate by getting our employment levels down."

90-day market adjustment plan

Displaying a chart showing the volatlity of steel market prices, Turcotte said it's important that the company develop ways of dealing with industry downturns. To see Turcotte's chart, please click here.

He said that Algoma Steel is implementing a 90-day market adjustment plan that will be initiated during the second quarter.

Asked by SooToday News about the specifics of the plan, Turcotte offered few particulars, indicating that it's still being developed.

Consultant studies times usage

Turcotte said that a consultant was recently retained to study the use of time by ASI employees.

Worker activities were allocated into three categories:

- idle time

- value-added tasks that move the company forward

- non-value-added tasks that might be necessary but don't move the company forward

Company executives are expected to use the consultant's analysis to determine where efficiencies can best be achieved.

Nine priorities for second quarter

Turcotte outlined nine corporate priorities for the next three months:

- put new operating line of credit in place by year end