Sudbury Northern Life Reporter Bill Bradley
Greater Sudbury's economy went from boom town status in 2008 to
layoffs and growing fear in the community.
Mining executives like Xstrata's Mike Romaniuk, and Vale Inco's
Fred Stanford had been bullish on the future.
"The world simply can't get enough nickel," said Stanford Feb.
6 at a Chamber of Commerce luncheon.
But by the early fall, a stock market crash started a series of
layoffs in local mining companies and service and supply
companies. Retired miner, Laurie Chartrand, 63, from
Chelmsford, said he was down $25,000 from the stock market
crash and knew some who had lost $200,000. He had a novel idea.
"We need the government to start a voucher system for those who
have lost money like myself so we would have the ability to buy
the cars that use our metals," said Chartrand.
Residents also told councillors repeatedly they were now
concerned over the city embarking on expensive public projects.
On Oct. 21, the city's much touted legacy projects (sports
complex and arts centre) were narrowly defeated by seven
councillors. They cited the city's worsening economic situation
and lack of grassroots support from all parts of the city, for
their vote against them.
But Laurentian University economist Dave Robinson, Laurentian
University commerce professor Jean Charles Cachon and Dick
DeStefano, executive director of the 95 member mining supply
and service association, SAMSSA, said the outlook was not all
that bleak.
Robinson has stated that most mining companies are in it for
the long-term and will try and hang onto their skilled
employees as long as possible to be ready for an upturn. Cachon
has said that the major mining companies and the smaller
service and supply companies still had sufficient cash to
weather the downturn. DeStefano said many of his members had
diversified into other markets and sold internationally or were
experienced in preparing for downturns. Some were even hiring.
Cachon added he thinks this downturn is not as dire for the
local economy. "The long-term outlook still looks good.
Companies have to be careful about layoffs because there still
is a 90,000 gap of mining workers. We still will see some
downsizing, but at Vale Inco, 30 per cent of the workforce
could retire. Once the upturn happens they could go back to
work and double dip, be paid on top of the pensions. That is
good for the retail economy."
One small mine operator, Ursa Major Minerals, which has an open
pit nickel operation west of the city, is optimistic about the
future. "Because we are open pit our costs are lower. We will
be one of the first operations to start up again once prices
move back up," said Gus Garisto, media relations officer. "Fuel
costs are down by half. That is a positive first step for us."
Cachon noted that up to 40 large chain stores could locate in
the city over the next five years, citing the expansion at the
four corners on dozens of acres as an example. And there is
stability from other sectors.
"Sudbury has become the centre of the north in the past 25
years. We have three post secondary institutions.
Enrolment has grown in the past and is stable now," he
said.  Past Laurentian University president Judith
Woodsworth said on May 1, the university contributes $303
million annually economically to the city. Government services
have also located here, helping to diversify the economy, said
Cachon.
Boom goes bust
- Ursa Major announces Oct. 9 suspension of pre-production at
Shakespeare Nickel open pit project near Webbwood with layoff
of 40-50 employees, including contractors.
- First Nickel announces Oct. 19 shutdown of production and
layoff of 140 employees of 160 at Lockerby Mine.
- FNX announces Oct. 21 layoff of 307 employees (59 staff and
248 hourly) at Levack Mine and suspend production ofnickel ore
from its McCreedy West mine so as to concentrate on copper and
precious metals instead.
- In late November Vale Inco reduces by attrition 40 office and
technical Steelworkers Local 2020 members.
- In late November Xstrata Nickel reduces by attrition 35
office and technical Steelworkers Local 2020 members.
- Xstrata announced Nov.13 shutdown of Craig and
Thayer-Lindsley Mines, seeking early retirement for 250
employees.
- Xstrata nickel bonus cut for third quarter.
- Vale Inco nickel bonus reduced for third quarter.
- Vale Inco announces  Dec. 4 temporary closure of South
Mine and postponement of the Copper Cliff Deep project.
- Vale Inco announces Dec. 5 Vale Inco placements for 30
Cambrian College students cut for January.
- Vale Inco and Local 6500 discuss Dec. 19 displacing
contractors with redeployed union members.
- Possible layoff of 1,000 members of SAMSSA by spring if
conditions do not improve. Already 300 layoffs by December
compounded by new Vale Inco financial system delaying payments
to companies by six months.