More than 400 workers in Evraz Regina's tubular steel division could be laid off later this month, with the recent winter storms possibly a factor.
A precautionary notice was issued to workers Monday.
An Evraz spokesperson told CBC News Friday that 80 per cent of the workers in that division could be laid off.
According to the United Steelworkers union local 5890, the tubular division has 510 workers.
A notice from the union said another company that works with Evraz is having problems shipping pipe from the Regina mill.
"Shaw pipe that is coating and shipping the current spiral order is having difficultly obtaining rail cars," the union notice said.
"The apparent reason for this delay is that the rails cars are held up due to winter storms that have hit the eastern part of Canada and the United States."
Layoffs potentially could happen on Jan. 20.
However, company spokeswoman Melodie Ruse said the layoffs may not happen and if they do, they will be temporary.
"In light of the diligence of our Evraz team members and the Canadian Pacific and Canadian National railroads, we are optimistic that the issues will be resolved over the next couple of weeks and we will be able to avoid a production curtailment and related layoff," Ruse said in an email to CBC News.
"We issued the layoff notice as a precaution since our collective bargaining agreement requires two weeks advance notification."