MARKETS

TECO lays off 38 in VA, KY

COAL market weakness is being blamed for 38 lay-offs at a TECO Coal complex that stretches across...

Donna Schmidt

TECO has made production cutbacks at the Clintwood Elkhorn complex, according to local television news outlet WSAZ. The miners from the Pike County, Kentucky, and Hurley, Virginia, properties – which include both underground and surface operations – have already received their pink slips.

TECO did not respond to an ILN request for comment by press time, so it is not known if the affected workers were offered transfers to other operations. However, a spokesperson did tell the news station that the miners would be called back if the market improved.

Clintwood Elkhorn spans more than 80,000 acres and contains over 39 million tons of recoverable reserves, according to the producer’s website. The complex has both domestic and European customers.

In response to changes in the industry, TECO announced a leadership restructure last week, including the creation of a single management team over the electric and gas divisions as well as the establishment of a business strategy team.

TECO chairman Sherrill Hudson said the company had not been immune to the impact of the sluggish economy and growth slowdown on both regional and nationwide companies.

“As we balance current and future environmental, economic and energy factors, it is clear that we need to continue to improve efficiencies in order to enhance our strong financial position moving forward,” he said.

“Our companies have already taken numerous steps to reduce costs by implementing process improvements and limiting compensation and new hires. The organizational change is designed to ensure a continued focus on cost management through enhanced productivity and efficiency through untapped synergies.”

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