Temporary Cost Saving Measures at Ontario Northland



    TORONTO, Oct. 27 /CNW/ - 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.

    Ontario Northland

    Ontario Northland, an operational enterprise of the Province of Ontario,
was established in 1902. Operating primarily in northeastern Ontario, Ontario
Northland's enterprises include: the Northlander, Polar Bear Express and Dream
Catcher Express passenger trains; rail freight services; motor coach scheduled
and charter services; refurbishment services; and Ontera telecommunication
services.




For further information:

For further information: Media Inquiries: Tricia Marshall, Ontario
Northland, (705) 472-4500 or 1-800-363-7512 ext. 529, cell (705) 845-8005

Organization Profile

Ontario Northland Transportation Commission

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