Teck Trail Operations laid off 38 staff members on Wednesday, Dec. 4 as part of its long-term management strategy.

Teck Trail Operations told the Trail Times that it is working to return to profitability by implementing a range of efficiency and cost management initiatives to support the company's operation now and into the future. 

"As a result, Trail Operations has reduced its staff by 38 employees, and we are working with all impacted individuals to support them through this transition," said a Teck spokesperson.

Teck Trail escaped any layoffs in 2019 when Teck Resources announced it was cutting the jobs of 500 full-time employees.

The current layoffs, however, come after Teck Trail Operations recently reported a one-time asset impairment charge, which resulted in the company taking a $1.1 billion pre-tax impairment charge in the third quarter.

"It's tough because all of the 38 people have ties to this community," said United Steel Workers Local 480 president Chris Walker. "Some people might know them as family members, others friends, neighbours, so it's really tough to see this many people go. 

"We knew there was some restructuring coming, but it's always hard when it happens, and those connections make it that much more difficult in a small town like this."

The timing comes just weeks before the holidays.

The layoffs were directed at Teck staff who aren't union members, but also affected workers on special assignment and attrition.

Walker explained that special assignment workers generally filled in for employees, and could be brought back in the future. 

"I could see them coming back, as with any position that comes available, but with Trail right now there is no guarantee of anything," he said.

"We have to make money, and the more money we make, the more profitable we are, and the more jobs we'll see come back."

The layoffs also followed a warning from Teck's new general manager at Trail operations, Matt Parrilla, at an open forum in October.

He reported that layoffs were imminent, with the intent to make Teck profitable again.

A Times' inquiry about upcoming layoffs was not confirmed at that time. 

"Teck remains committed to Trail Operations as part of the company91ÂãÁÄÊÓƵ™s strategy of providing essential materials, particularly given the strong integration with our Red Dog mine," said Teck. 

Teck Trail recently invested $154 million for the replacement of the KIVCET boiler and a second feed dryer.

The original KIVCET was installed in 1997 and, along with other improvements, has since reduced emissions by 95 per cent. 

"Teck will continue to focus on ensuring the long-term viability of the operation."

Walker says the jobs held by union members currently seem secure, but recent action does give the future an element of uncertainty.

"The reality is they (Teck) need a certain number of people to run the plants and the maintenance that is there," said Walker. "It's my understanding there are fewer contractors now than there has been in a while, and the expectation is we are going to keep more work in house, and we are going to need more employees to do that work.

"So those changes hopefully help us be sustainable for another 100 years."