LIIDLII KUE/FORT SIMPSON - The village of Fort Simpson has two fewer jobs following a layoff of staff by Imperial Oil.

Imperial Oil reduced its staff at three Mackenzie Gas Project offices in the territory by 50 per cent, said Pius Rolheiser, a spokesperson for the company.

Staffing at the Mackenzie Gas Project office in Fort Simpson has been cut from three positions to one. - Roxanna Thompson/NNSL photo

The layoffs, which take effect at the end of this month, will leave positions for five out of 10 employees. In the Fort Simpson office two of three positions have been cut. Two positions were also cut in Norman Wells along with one in Inuvik.

"We had to make the decision and it's a hard decision to make," Rolheiser said.

The layoffs are a result of a decreased amount of work on the project. The proponents have narrowed the focus of the work they're currently involved in, said Rolheiser.

The focus has been placed on completing the regulatory process, working on benefits and access agreements and continuing discussion with the federal government on a fiscal framework for the project, he said.

This work doesn't involve the Northern offices that were designed to share information about the project, if possible in local languages, he said.

"It isn't reasonable or fair to have people sitting with nothing to do," said Rolheiser.

For now the three Mackenzie Gas Project offices in the North will remain open with reduced staff.

The layoffs were forecasted by Imperial Oil.

In March 2007, when the proponents submitted updated cost and schedule information, it indicated that until there was greater certainty of the project continuing the proponents wouldn't start the next phase of project engineering work. The current phase has been completed.

At the time it was stated that the uncertainty would result in the decline of Mackenzie project work and staff, Rolheiser said.

Rolheiser is quick to point out that the layoffs are not an indication that Imperial Oil is shelving the project.

"This is in no way a reflection of a diminished commitment to the project," said Rolheiser.

"Imperial remains committed to the project and we're continuing to work hard on a number of fronts to find a successful path forward."

The decrease in project staff isn't confined to the Northern officers. The reduction of Mackenzie project-related staff based in Calgary has been larger on a percentage basis than it has been in the North, said Rolheiser. Rolheiser was unable to supply an exact percentage.

Staff in Calgary has been reassigned to other projects. Some of the staff are Imperial Oil employees while others are employees of co-venture companies.

Imperial Oil is offering severance packages as well as financial and other support for re-training and reentry into the work force to the people that are being laid off, Rolheiser said.