Hundreds expected to be laid off at Algoma Steel

As Algoma Steel prepares to lay off a significant number of employees in the wake of a pipe collapse, the federal government is moving to expedite employment insurance claims.

This comes as the local Steelworkers union awaits word on what caused the collapse.

No firm number has been released by Algoma Steel with regard to how many employees will be laid off in the coming days. However, United Steelworkers Local 2251 President Mike Da Prat said he's heard up to 500 workers could receive layoff notices.

"We advised the company that EI should put on an on-site intake because of the large number of people," said Da Prat.

Sault Ste. Marie MP Terry Sheehan echoed that call, saying he saw a need for an expedited EI application process.

"When I had heard that a quarter, potentially, a quarter of the workforce was going to be laid off, I got on the horn, started making calls, started emailing the minister's office, Service Canada, to make sure that they would do what they call a group intake," said Sheehan, who said presentations by Service Canada staff are already underway at Algoma Steel.

Meantime, Da Prat is waiting on the results of an internal investigation into what led to the pipe collapse.

"We're going to reserve our judgment until the investigation is completed," said Da Prat.

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"If the union is satisfied with the investigation, that's one thing. If we're not satisfied with the investigation, we'll go through procedures to try to figure out ourselves."

Da Prat said he can't predict how long the layoffs will last. A request for comment from Algoma Steel was not immediately answered.