December 15, 2001
Closing of the Empire Mine has resulted in layoffs at the Escanaba ore dock. Canadian National announced this morning it will lay off 32 employees at its Escanaba ore dock and 12 workers on its rail lines. Lake Superior & Ishpeming President John Marshall said those layoffs won't have an effect at the Marquette dock. At the LS&I ore dock in Marquette's Upper Harbor, workers will be laid off at the end of this shipping season as usual, but the company currently plans to bring them all back when the new season begins. CN's layoffs were in response to last month's announcement the Empire Mine will be closed indefinitely and nearly all of the 890 employees would be laid off. More than 85 percent of the ore mined at the Empire was shipped from Escanaba. Marshall said the Marquette ore dock ships mostly ore from the Tilden Mine near National Mine - about 80 percent - and only about 20 percent from the Empire Mine near Palmer. As a result, the company has no plans to lay off its dock workers until the Soo Locks close Jan. 15. Marshall said that as long as the Tilden is operating, all 20 dock workers should be called back to work in the spring.
"We expect to open for business as usual," he said. In
mid-October, LS&I laid off 21 employees in a move largely blamed on the
general downturn in the steel and iron ore industries. LS&I currently
employs about 140 people. Overall, the Great Lakes shipping
business is showing the effects of reductions in the iron ore and steel
industries. Glen Nekvasil, vice president of corporate communications
for the Lake Carriers' Association, said the plight of the shipping
industry will undoubtedly affect the ore docks as well. Only 52
U.S. vessels were plying the lakes this season, compared to 60 the year
before. Nekvasil said 10 ships were docked at various times this season,
and two - the Elton Hoyt and the Edward R. Ryerson - didn't sail at all.
"That is just unheard of," he said. "The docks and the ships are in the
same situation. Iron ore is just having a terrible season."
From the Marquette Mining Journal via
OreRail@yahoogroups.
From Escanaba's
Daily Press:
ESCANABA - Friday's announcement by Canadian National that it is
laying off one-quarter of its local Wisconsin Central Division
workforce came as only a slight surprise to government officials and
business sector representatives here. Many said they had
expected such a reaction by CN to the indefinite closure of the Empire
Mine. Most did not think the numbers of workers let go would be quite
so high. All expressed concern for those displaced and were acutely
aware of possible ripple effects in local economy.
CN will lay off 32 employees of the Escanaba ore docks and 12 rail
freight line employees, effective Dec. 31. CN acquired Wisconsin
Central Transportation Corp. in a $1.2 billion deal in October. The
Wisconsin Central Division of CN operates rail freight lines and the
Escanaba Ore Dock. More than 85 percent of the ore mined at the Empire
is shipped out of Escanaba.
The ore dock facility will continue to operate 16 hours a day, six
days a week and at other times as needed. Canadian is
"aggressively searching for new prospects." The company will
consider calling back workers if the steel industry recovers.
The layoffs are part of a regionalized domino effect. The domestic
iron ore and steel industry has been reeling since the mid-1990s from
a high influx of foreign-produced steel. Integrated steel makers, like
Empire Mine part-owner LTV, Inc. have been forced into bankruptcy,
they claim due to unfair competition from the dumping of cheap steel.
U.S. Congressman Bart Stupak's reaction to Friday's layoffs was to
reiterate the need for federal protective measures. "The iron ore
industry needs a chance to breathe," said Stupak. "So does the whole
steel industry." Stupak is urging the president to take quick action
to produce remedies in the form of tariffs and quotas.
Stupak is optimistic the Empire Mine will be back in production by
spring. "It will come back, it just won't come back as strong as
it was before," he says. Stupak said the Empire is running out of
concentrations of high grade ore and will most likely reduce
production permanently by 25 percent. "We expect to lose about 350
miners out of this whole thing," he said.
Local response also included calls for trade protections. "I
sincerely hope efforts underway in Washington can address the
situation and correct it," said Escanaba City Council Member Marc
Tall. Regarding local impact, Tall stated, "The layoffs are of course,
tragic. They are a symptom of the problems facing the entire industry.
This is an example of how interconnected we are, of how trouble within
the iron ore and steel industry affect us here in Escanaba."