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06-23-2006, 03:36 AM
Stelco to cut 15% of staff
Last Updated Thu, 22 Jun 2006 13:11:33 EDT
CBC News
Steelmaker Stelco Inc. plans to cut about 15 per cent of its workforce through retirements, attrition and buyouts, the company said Thursday.
The Hamilton-based company employs about 5,000 people, according to Stelco's website, which means about 750 jobs would be cut.
Stelco said the workforce reduction will cost $25 million, but ultimately lead to $45 million in annual savings.
The announcement of the job cuts comes less than a week after members of the United Steelworkers union approved a new four-year labour agreement. A Steelworkers official told CBC News that the union knew of the pending cuts before the new deal was approved.
Stelco also said it will try to save another $65 million annually through other methods, including by changing benefits plans for salaried employees, managing energy better and eliminating some contractors.
As part of a presentation to shareholders, Stelco president and CEO Rodney Mott said the company's aim is to boost its productivity to 1,220 tonnes per employee â about 40 per cent higher than current production levels.
The company also expects its revenue will exceed $3 billion, an increase of 33 per cent over 2005's figure, through a combination of higher volume and prices.
The steel company emerged from creditor protection at the end of March after a 26-month restructuring.
Last Updated Thu, 22 Jun 2006 13:11:33 EDT
CBC News
Steelmaker Stelco Inc. plans to cut about 15 per cent of its workforce through retirements, attrition and buyouts, the company said Thursday.
The Hamilton-based company employs about 5,000 people, according to Stelco's website, which means about 750 jobs would be cut.
Stelco said the workforce reduction will cost $25 million, but ultimately lead to $45 million in annual savings.
The announcement of the job cuts comes less than a week after members of the United Steelworkers union approved a new four-year labour agreement. A Steelworkers official told CBC News that the union knew of the pending cuts before the new deal was approved.
Stelco also said it will try to save another $65 million annually through other methods, including by changing benefits plans for salaried employees, managing energy better and eliminating some contractors.
As part of a presentation to shareholders, Stelco president and CEO Rodney Mott said the company's aim is to boost its productivity to 1,220 tonnes per employee â about 40 per cent higher than current production levels.
The company also expects its revenue will exceed $3 billion, an increase of 33 per cent over 2005's figure, through a combination of higher volume and prices.
The steel company emerged from creditor protection at the end of March after a 26-month restructuring.
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