With power sales to energy-starved Americans driving earnings for Cominco and parent Teck (TEK-T), the company plans to lay off 91 unionized employees from its Trail Metallurgical Operations, effective November.
Teck-Cominco cites low zinc prices, which recently hit US38 per lb., as the reason for the layoffs. The company says it maintains its commitment not to terminate employees as a result of power sales.
Over the past 18 months, Cominco has been raking in profits by selling surplus power to the United States. The major curtailed zinc production at its Trail metallurgical complex in order to free up surplus electricity for sale.
Cutbacks this year are expected to total 115,000 tonnes, or 40% of design capacity, based on an earlier announcement that a planned summer shutdown of Trail will be extended by one month and will last from early July to the end of September.
The total work force at the complex is expected to be reduced by 120 this year, including early retirement opportunities to be offered to non-union staff.
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