By François Biber

PotashCorp chairman responds to Premier Wall

Dec 6, 2013 | 6:17 AM

More than 1,000 pink slips handed out at Potash Corp. of Saskatchewan this week did not happen in favour of stronger payouts to shareholders, says chair of the board Dallas Howe.

In a letter to the office of Premier Brad Wall Thursday afternoon, Howe said even if PotashCorp drew its dividends to zero, it still would have cut jobs to preserve the corporation’s long term sustainability.

Howe’s response comes hours after Wall published his own scathing letter to PotashCorp, accusing the company of sacrificing the livelihoods of employees for a better payout to investors.

In Howe’s letter to the Premier, he cites that in 2007, PotashCorp produced more than eight million tonnes of potash in Saskatchewan with a workforce of 1,600.

“In 2012 and 2013, our Saskatchewan production will be approximately seven million tonnes per year while our workforce has increased to 2,600 people after ramping up expansions for anticipated demand,” Howe said in the letter.

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Rapid growth and expansion, coupled with declining demand for potash is ultimately why it cut 18 per cent of its workforce worldwide.

In 2013, the 52-week high for its share price on the Toronto Stock Exchange was $45.13, and in recent weeks has dipped as low as $29.67, a 35 per cent decline.

“The recent decision to reduce PotashCorp’s workforce across the company was difficult and made after extensive review and analysis of the interests of all stakeholders,” Howe said.

You can read Howe’s letter to the premier here.

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