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, 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
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