Recent layoffs at the Genesis Alkali trona mine in southwest Wyoming have some in the community scratching their heads about why and asking what’s on the horizon for one of the state’s largest — and, arguably, most stable — mining sectors.
In early November, the company notified 30 employees — among more than 1,000 — they’d lose their jobs in December, adding that the total number of eliminated positions would be about 40. Those who got pink slips this month included new hires who’d just showed up for onboarding and training the day before, according to a union representative.
In fact, trona operators in the state — including Genesis — have been in expansion mode, including two major new drill-and-pump mining projects south of Green River. Genesis revived the Granger production facility a few years ago, adding about 100 workers. In 2022, the company received $665,000 from the state to help train more than 300 workers.
Yet company officials point to a softening global market for soda ash — which is derived from trona to produce glass, baking soda and myriad other products — for the layoffs.
“That’s the reason for the layoffs — because the global market is not doing well this year,” Genesis Alkali spokesman David Caplan told WyoFile, adding that about 60% of the company’s Wyoming production is exported overseas.
That reasoning doesn’t sit well with Marshal Cummings, president of United Steel Workers Local 13214 at the mine. The downturn in global demand was evident this past summer, he said, and yet the company has brought on new hires since, including the day before layoffs were announced.
“That is irresponsible,” Cummings told WyoFile. “It just doesn’t sit very well with the union.”
The union implored company officials this summer to prioritize buyouts over layoffs if a reduction in workforce was unavoidable, Cummings said. Many employees nearing retirement would consider such an offer, he added, and lower-seniority employees who received pink slips this month have fewer resources to weather a layoff and remain in the community.
“It’s not fair for these people who are just establishing their roots in southwest Wyoming,” Cummings said. “These other [trona mining] companies you see hiring right now — they’re all in the same industry. We’re all within 20 miles of each other. It doesn’t make any sense.”
“It’s not fair for these people who are just establishing their roots in southwest Wyoming.”
Marshal Cummings, United Steel Workers Local 13214
One recently laid-off employee was advised to apply to a contracting firm that’s going to do work at the Genesis mine, Cummings said.
“The people that are getting laid off are joining the contractors to come back to the same place that they got laid off from,” he said. “The people that come out as contractors, they’re making a lower wage. So it’s discounted labor in [the company’s] eyes. They don’t have to carry their benefits. That’s a fight we have all the time with the companies.”
The union is working on potential next steps, Cummings added.
Cummings said he also suspects that deferred maintenance has led to production challenges and may have factored in the company’s decision to impose layoffs.
Caplan with Genesis Alkali said he could not comment on many of those assertions, but he said maintenance issues were not a factor in the layoffs.
“We have a good capital budget that we set aside to fix all this stuff if it breaks, because it’s very important for us to get that rock out of the ground and process it on the surface,” he said.
Though the global soda ash market can swing on geopolitics and myriad international drivers, Caplan said, the industry remains fairly stable and is expected to recover and even grow.
“This is basic economics — and we’ve been here before,” Caplan said. “We can’t be in denial that this [downturn] is going on. So we take action, and then expect that it’s only a matter of time — not if, but when — the market will recover.”
Wyoming is home to the largest trona deposits in the world, according to the Wyoming State Geological Association. The state produced more than 16.6 million tons in 2018, and the trona industry employed nearly 2,400 people.
CORRECTION: This story was updated to reflect the number of workers hired to support the revived Granger trona operation. — Ed
Over all the glass market is down. Ardugh in state of Washington shut down production. China is in economic slump that hurts market. Right now the soft market and over supply means layoffs. Sorry Roger and all nay sayers. It market dynamics at work. Silica sand market for glass is down as well. Plus unions management backed a loser in Harris.
$665,000 from the state to train their employees. Wow. More corporate welfare from the Republicans.
Unions have lost common sense and business acumen. UAW backed Biden/Harris knowing full well EV market would harm their jobs and companies they worked for. Look at the mess Biden’s agenda done to car market! Higher prices/higher interest on car loans. Illegal immigration’s suppressed real wage growth in job market everywhere. It no secret global economy is hurting. Yet UNIONS deny the facts. Typical Democrat thinking. Unions now can live with the mess like rest of us. Hey union members—— learn how to code. Isn’t that what Biden Harris told oil gas and coal miners?
Larry, please explain how Biden increased interest on loans. Before you begin, research what caused inflation and the means of corraling inflation, and lastly, the agency that implements the actions to lower inflation.
Roger. Government spending drives inflation. End of story. Look at the $7.5 BILLION spent for 7 EV fast chargers. 7 for $7.5 billion. Come on Roger you are one who needs to wake up. Auto glass world wide is large market for Trona. Auto sales USA/world wide are way off. As is windows(made with glass) for homes. Again market way down. Since Harris will soon be unemployed, maybe she can learn to code as well. But AI will soon being doing that anyway.
The current political climate supports Genesis and other large mineral extraction corporations to “outsource” their labor costs. The trend started in the 80s with Reagan.
The auto industry is the most visible to de-unionize. Privately owned utilities across the country started this process in the early 80s as well. Most undergrounding work is now performed by contractors, not union utility employees.
Another example is what happened to the lumber mills in the northwest. The spotted owl and EPA was blamed for demise of the milling industry. It was actually corporations shipping raw logs to Japan for milling rather than upgrading America’s mills that killed good paying American jobs.
Wyoming’s freedom caucus will likely be quiet about this shift in labor employment and the slow killing of union jobs and the living benefits they provide.
You got that right. Once the easy stuff was logged, Boise Cascade, Wyerhauser, Louisiana Pacific all shut down the mills and moved on for the most part. When some acreage gets logged now, they use a couple of those bunchers and about 3 men and half a dozen truck drivers to cut it bare. Used to be it would have taken dozens of men who would be able to provide for their families. Not any more, the companies only care about the bottom line and shareholder $$$. Screw the workers is their mantra. S… in Washington, you can’t even go into the forests because Wyerhauser and et. al bought it all from the state in the 1980’s, No fish left in our streams, hoof rot in our elk; thank your local timber company.