The Timken Company (USA; NYSE: TKR) announced dramatic cutbacks at its St. Thomas, Ontario, Canada manufacturing plant.

Opened in 1946, St. Thomas manufactures tapered roller bearings, primarily for the troubled auto industry. At one time, St. Thomas also manufactured tapered roller bearings for rail applications. Hourly shift workers are represented by Local 4906, District 6 of the United Steelworkers of America.

At one time, the plant ran three shifts and employed over 300 people. By 2008, that number was down about 10%. The significant cutbacks began in 2008, however. Last year, more than 70 were laid off. Timken recently offered an early retirement incentive package, but only a few accepted.

11/25/2008 : Layoffs hit Timken St. Thomas
Around 140 workers, or nearly 70%, of those remaining at St. Thomas, have now been laid off, leaving just 70 or so. And the plant now runs just one shift.

The layoffs and shift cutback were announced shortly after workers returned to St. Thomas following a two week shutdown to burn off inventory.

Timken spokeswoman Lorrie Crum indicated the cutbacks were based solely on product demand, and that they should be considered temporary. "As soon as demand comes back, people will be coming back," she said.