Alstom group lays off 550 in Montreal because of slower
U.S. rail industry

Updated 2:43 PM ET January 8, 2001

MONTREAL (CP) - Rail equipment services company Alstom
Transport is laying off 550 workers at its operations in
Montreal because of a slowdown in orders from the U.S. rail
industry.

Alstom said Monday the temporary layoffs, affecting
two-thirds of the staff in the company's transport unit, will
start gradually beginning this week until the end of
February and will last until business picks up. "During the
last year, we were confident that the market outlook would
have allowed us to obtain several contracts," president
James Cherry said in a release.

"Unfortunately, our clients postponed their investments
due to the economic slowdown in the U.S. and the many
mergers that have created surplus stock. We must adjust
our action plans and our human resources plans for the
next few quarters as a result of this volatility in the
market."

Cherry said the company will work to recall its employees
"in the shortest time possible."

Alstom's transport unit employs about 830 people at the
plant in the Pointe-St-Charles district of Montreal, mainly
in refurbishing rail cars for North American railways.

The Canadian company, part of the giant French
engineering and industrial services Alstom group, also
manufactures equipment for the production, transmission
and distribution of electricity.

Overall, Alstom employs 2,000 people in Canada and had
sales of $850 million last year.