[IPSM] Grassy Narrows: Kenora Mill Shutdown

[Stefan Christoff]

---------- Forwarded message ----------
Date: Thu, 28 Jul 2005 13:30:52 -0400 (EDT)
From: dave brophy <slim_feller at yahoo.ca>

Mill closure announced
No. 9 machine and pulping processes gone for good in October, No. 10 machine to be idled indefinitely

By Peter James
Kenora Daily Miner and News
Wednesday July 27, 2005
There’s a dark cloud over Kenora’s economic future after Abitibi-Consolidated announced this morning it was shutting down one paper machine permanently and indefinitely idling another.
“It’s bad for me, bad for the people I represent and horrible for the community,” said local International Association of Machinists president Tom Beach.
“The news is about as bad as it can be.”
Between 150 to 200 people of the current 350 people on the company payroll here will lose their jobs permanently when number nine paper machine shuts down Oct. 22.
Most of the remaining 150 or more will be out of work if the number 10 machine is idled as planned.
The company will also be closing the sulphite and ground wood pulping processes as well as the wood room.
The company is blaming the shutdown on high production costs in Kenora.
One major part of that is energy costs. Electricity costs are higher in Ontario than almost any other jurisdiction in North America.
Company spokesman Denis Leclerc said Abitibi will be continuing its discussions with the provincial government on how to find “innovative ways” to reduce costs.
“The government is well aware of the situation,” Leclerc said, noting there will be a meeting Thursday with government officials to discuss the next step.
Union officials and community leaders were upset, but not surprised with this morning’s news.
The mill has been the subject of an operational review since January and it’s been long expected that the number nine papermachine -- the smaller of the two papermachines -- was in jeopardy.
“I’m shocked, but I’m not shocked,” Kenora mayor Dave Canfield said.

Writing on the wall

“The writing was wall because of high costs in the province of Ontario.”
He plans to continue to pressure the provincial government to act on the report from the Minister’s Council on Forest Sector Competitiveness.
“It’s in the government’s ball park now, they’ll either make or break this mill,” the mayor said.
Other suggestions Canfield has include trying to buy cheaper power directly from Manitoba to supply the mill and to try to work with the company to share the financing of a co-generation plant.
The news has hit employees hard as many of them suddenly find themselves looking for work.
“I’m anticipating how the phone will be ringing today and how many times I will hear the anguish in the voice (of workers) that their life is in disarray,” Beach said.
He represents 90 skilled workers at the mill and has already began looking for work for his members in the oil fields of northern Alberta.
Glen Morrison, the president of the local Steelworkers union said they will be organizing a meeting for their members soon to discuss their options.
Morrison said the announcement proves his union was on the right track when it called on the government to tie wood rights to individual communities.
He expects the company to continue to harvest wood in the Kenora area and ship it to other mills.
“They’re going to continue to do what they’re doing. They’re going to leave us with an empty shell,” he said.
The company will not be offering workers any early retirement packages as part of the shutdown, instead they will be following collective bargaining agreements in place with the unions for severance packages.
“We don’t intend to offer any special packages,” Leclerc said.
Kenora isn’t the only community affected by the announcement. Abitibi also announced it will be shutting down its mill in Stephenville, Nfld. permanently in October.