The Galena Mine will cut its workforce by about a third in response to plunging silver prices and high production costs, officials said Tuesday.
Layoff notices are being sent to 126 of the underground silver mine’s 351 workers. Affected employees will be given a 60-day notice in compliance with federal law and the mine’s collective bargaining agreement, said Janice Mandel, a spokeswoman for U.S. Silver and Gold Inc., the mine’s owner.
In addition to the layoffs, Blasutti and the company’s board of directors will take a voluntary 20 percent pay cut and the executive management team has agreed to a 10 percent cut, according to the release. The pay cuts take effect Aug. 1st.
Producing an ounce of silver from the mine costs about $16, so skidding prices for the metal took a toll on U.S. Silver and Gold’s profitability, according to a company news release.