Teck Trail to lose between 70 and 80 jobs in 2016, most via attrition

Trail Champion
By Trail Champion
November 19th, 2015

Trail will be losing between 70 and 80 jobs as Teck Cominco reduces its operating costs for 2016.

In a press release issued Tuesday, Teck officials indicated a $650 million reduction in overall spending for 2016 throughout their global operations.

Teck Trail spokesman Richard Deanesaid this will mean, for Trail,  a reduction in capital spending in 2016 and a five-per-cent reduction in Trail Operations’ workforce between now and the end of 2016. 

“Trail’s current workforce is just under 1,500 employees, so this translates to a reduction of between 70 and 80 positions,” he said. “While every effort is being made to achieve these reductions through attrition, there will be some layoffs.”

In terms of global impact, the Teck press release indicated an increased need to cut costs throughout their international undertakings.

“In response to persistent low commodity prices, Teck is implementing additional measures to reduce costs and conserve capital:

·       Reduction in total spending of $650 million in 2016, to be achieved through $350 million of capital spending reductions and deferrals and $300 million of operating cost savings identified as part of the 2016 operating budget.

·       Elimination of an additional 1,000 positions across Teck’s global offices and operations, through a combination of layoffs and attrition. This will include a reduction in senior management positions and brings total labour force reductions over the past 18 months to approximately 2,000 positions.

·       Withdrawal of the Coal Mountain Phase 2 (CMO Phase 2) project from the Environmental Assessment process and suspension of further work on the project. “

The release said the capital reductions and deferrals described above are in comparison to preliminary 2016 capital spending plans. The 2016 capital budget is still under review and Teck will announce forecast 2016 capital spending in February 2016.

“We are implementing these additional measures to conserve capital, lower our operating costs and maintain financial flexibility in light of very difficult market conditions,” said Don Lindsay, President and CEO. “These steps build on our ongoing cost reduction program and I want to thank all employees for their efforts to improve efficiency and productivity, while remaining keenly focused on safety and sustainability.”

This post was syndicated from https://castlegarsource.com
Categories: BusinessGeneral

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