Davie shipyard halts production

Workers at the Davie shipyard are upset with the company's decision to halt work on all of its shipbuilding contracts.

The suspended production means 100 workers at its operation in Levis, Que., will be temporarily out of work, starting Monday. This follows the 1,600 workers who were laid off last June, when Davie Yards Inc. filed for protection from its creditors.

The company is hoping to save close to $1 million a month in operating costs, which it will use to try to restructure.

The company currently has contracts for five ships totalling $700 million US.

In a news release, Davie CEO Gustav Johan Nydal said the company is still confident it can work out arrangements "to resume normal activities."

The shipyard said work will continue in the engineering and planning departments.