Welland, Ontario-based pipe and tube manufacturer Lakeside Steel Inc announced October 7 that it has implemented a restructuring of the salaried workforce at its Welland location.
The restructuring initiative will reduce the number of salaried employees at the manufacturing facility by 25 percent and will result in a corresponding 25 percent reduction in wage costs for salaried personnel.
"This restructuring is an important and necessary measure in Lakeside's ongoing campaign to rationalize the cost base of its business. This is an example of an initiative we have taken to maintain the Company's continued profitability and reinforce our ability to maintain a competitive position within the industry," commented Ron Bedard, Lakeside's President and CEO.
According to Bedard, the softened US economy and cheap labor costs has made it cheaper to ship steel pipe products to customers in Canada's northern regions from the new Thomasville, Alabama plant than from Welland, therefore putting pressure on manufacturers like Lakeside.
Although the company has not disclosed the exact number of personnel that will be affected, Lakeside has about 74 salaried employees; therefore about 18 or 19 positions are expected to be cut.