Roxanna Thompson
Northern News Services
Published Monday, January 28, 2008

YELLOWKNIFE - Three communities in the Sahtu and Deh Cho regions are several jobs lighter now that Imperial Oil has slashed some positions from its Mackenzie Gas Project offices in Fort Simpson, Norman Wells and Inuvik.

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

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. 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.

Don Yamkowy, president of the NWT Chamber of Commerce, isn't at all surprised by the staff cuts.

"The jobs were placed in these communities for the facilitation of the environmental impact hearings of the Joint Review Panel and the community consultations. Those are finished," Yamkowy said.

"So now, until Imperial hears whether there's going to be a pipeline or not (the National Energy Board is expected to make a decision in mid-2009), I can see them reducing the jobs."

Yamkowy just hopes the rest of the process remains on schedule, as the same towns stand to benefit from the pipeline.

"Hopefully, it isn't going to be a long two- or three-year process, because once there is a pipeline, they'll be other jobs that will come to these communities," he said.

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

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."

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

Mackenzie project staff were cut in Calgary as well as in the North, he said.