Saskatchewan agricultural manufacturer Seed Hawk has laid off 35 workers and reassigned others as it faces fewer orders from Eastern Europe.
The layoffs take effect May 6 and come with recall notices for Aug. 3. They were issued just a few months after the company from Langbank, Sask., announced a $7.5 million expansion to increase the size of its manufacturing facility.
Gordon Wyatt, vice-president of operations, said the company regretted the lay-off decision, but added it was necessary.
“The global recession has kind of come home to roost here a little bit,” he said.
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Seed Hawk is doing significantly less business in credit-strapped countries such as Russia, Ukraine and Kazakhstan than it did a year ago and doesn’t expect that to change much over the next quarter.
“We’re working hard with our Swedish partner to expand sales opportunities,” Wyatt said.
Vaderstad-Verken of Sweden has a minority interest in Seed Hawk.
Some inventory will be moved from Europe to the stronger markets of Australia and North America.
Wyatt said assembly, welding and painting workers have been given opportunities to work elsewhere in the company, including on the expansion project. Some are working in an expanded warranty department to provide better support to customers.
The 35 laid-off workers included casual, temporary and full-time employees. The company employs 108 people.
He also said some employees are also farmers and will use the layoff to work on their own businesses. In the past, many of those employees were seasonal workers.
Wyatt said the company is confident the workers will be back to work by August at the latest.
“We’re not aware of anything that could happen that would take us beyond August,” he said.
The layoff will be shorter if orders materialize in Europe, he added.
Other manufacturers have also been affected by the world financial recession.
Last fall, Case New Holland laid off 300 workers in Saskatoon, citing continuing weakness in the economy.
