Cameco’s move to permanently lay off 700 employees has many in “panic mode,” according to the union representing Cameco workers.
On Wednesday, the uranium company announced it’s shutting down production at the McArthur River and Key Lake mines — permanently laying off 550 workers. In addition, Cameco is terminating 150 corporate positions.
“A lot of union members have called me concerned, wanting to know if it’s correct and what options are available. At this point, it’s in panic mode,” Denis O’Hara, president of the United Steelworkers Local 8914, said.
O’Hara said many of the permanent layoffs included employees who were temporarily laid off in January, but expected to go back to work in the fall.
The Saskatoon-based company announced the layoffs in its second quarter results, which reported a net loss of $76 million — compared to a loss of $2 million for the same period last year.
Tim Gitzel, Cameco’s president and CEO, said the layoffs were a “difficult decision.”
“It’s necessary to sustain the viability of the company long-term,” Gitzel told CTV News.
“I know it’s tough times for their families, and I regret that very much. But I can tell you I’m optimistic about the future. I’ve seen these cycles come and go, and it will come back.”
As a result of the layoffs, Cameco said it expects about $40 million in severance costs in the third quarter.
The layoffs come into effect November 15. Employees have the choice to take a severance package, or keep their name on a callback sheet for the next 36 months.
