ONTC announces 29 temporary layoffs

Ontario Northland
News Release

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Ontario Northland President and CEO Steve Carmichael released information today regarding temporary cost saving measures being implemented as a result of the Kidd Creek Mine strike.

“Kidd Creek is one of our major rail freight clients and, as a result, this disruption will have a significant impact on our bottom line.” said Carmichael. “We find ourselves in the position of having to take cost-cutting measures that will help us to offset the effects of reduced freight traffic brought about as a result of this strike.”

Soon after the strike began, immediate action was taken to lower costs by reducing train starts, and deferring training, hiring, and capital and non-essential spending. In addition, some employees were redeployed within divisions to minimize the financial impact of the disruption.

Further cost-saving measures are still required that will result in 29 temporary layoffs. Additional savings are being achieved through a combination of reduced work hours, redeployment of employees and deferred hiring.

“We are very disappointed to have to take these measures; however, they are necessary in the short-term in order to ensure the long-term sustainability and success of our organization. We continue to hope for a resolution to this disruption,” commented Carmichael.

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