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Shortage of railway cars poses layoff risk at big Regina steel mill

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(Globalpost/GlobalPost)

REGINA - Problems in getting enough rail cars to transport pipe have led to precautionary layoff notices for more than 400 workers at the Evraz North America steel mill in Regina.

The notices went out earlier this week to employees in the company's tubular steel division.

The division employs 510 people.

The layoffs could take effect Jan. 20, but the company says it hopes they won't be necessary.

Melodie Ruse, a company spokesperson, says in an emailed statement that the plant is overstocked with pipe due to logistical transportation problems at both Canadian Pacific (TSX:CP) and Canadian National (TSX:CNR) railways.

Ruse says Evraz is optimistic production will continue, but the notices had to be issued under terms of its collective bargaining agreement with the workers. (CJME)

http://www.globalpost.com/dispatch/news/the-canadian-press/140110/shortage-railway-cars-poses-layoff-risk-at-big-regina-steel-