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| Last updated at 8:32 AM on 05/12/08 |
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Grand Falls-Windsor Mayor Rex Barnes |
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Mill to close 
Sixteen weeks to go; hundreds of jobs at stake
GRAND FALLS-WINDSOR
TERRY ROBERTS AND DAVID NEWELL
The Telegram and Transcontinental Media
Francis Wilson is normally well-spoken and confident. But the owner of Wilson Contracting Ltd. was almost speechless Thursday as he drove to his company's premises in Grand Falls-Windsor.
"I don't know where to go from here," Wilson said during a phone interview.
Like hundreds more in central Newfoundland, Wilson is pondering his future.
After months of uncertainty and intense discussions, AbitibiBowater, the Montreal-based company battered by shrinking markets for newsprint, announced an action plan to address market challenges Thursday.
That plan includes the permanent closure of its century-old Grand Falls-Windsor newsprint mill, taking with it roughly 1,000 well-paying direct jobs, and many more in other sectors that depend on the area's paper-making industry.
The decision will have far-reaching impacts for a region built around the forest industry and will certainly cast a dark cloud over the area as the Christmas period approaches.
It's yet another consequence of the worldwide economic downtown and will be devastating for the region, said Wilson.
"I'm taken aback. I did not think it would go this far," he said.
The company lost more than US$800 million in the first nine months of this year, and has been aggressively reducing capacity in recent months.
It has described the Grand Falls-Windsor mill as one of the highest-cost operations of its kind in North America, and its closure will mean the loss of more than 200,000 metric tonnes of newsprint.
Company spokesman Jean-Philippe Cote said the mill will close in 16 weeks, or the end of March.
"When you have to cut, the only option left is to cut where operations are the most expensive," he said.
He said it was a difficult decision, and the company will do what it can "to make sure working dynamics will be the best possible" until the doors are shut for the last time.
Cote wouldn't speculate on whether the decision may have been different had the union representing most of the workers, the Communications, Energy and Paperworkers (CEP), not twice rejected cost-cutting measures proposed by the company.
"The fact is the plan has been rejected, so we had to work within all our operations to see how we could reduce capacity," he said.
Many mill employees were not surprised by the news, but there was no hiding their disappointment.
Dexter Hoffe of Bishop's Falls, a member of CEP Local 63, said the reality of the situation still hasn't sunk in.
"There is a lot of disbelief and disappointment," he said.
Many have argued all along that the company wanted to close the mill, and were only using its so-called "renewal plan" for the mill as a smokescreen to mask its real intentions.
There has also been widespread speculation that the company wanted to close the mill and simply operate several profitable hydro-electric facilities on the Exploits River and at Star Lake.
The union has also complained about a lack of reinvestment into the mill, even during times when the operation made considerable profits.
Cote said the company will continue to operate its hydro assets, and will engage in talks with the provincial government about its land rights in the province.
He would not say what the company will do with the mill.
"We are operating for the next 16 weeks, so we are hesitant to talk about any scenarios," he said.
In rejecting cost-cutting proposals, employees said the company was seeking too many concessions without any willingness to compromise.
Union officials say they were ready to adopt many of the company's proposals, which would have resulted in the saving of millions of dollars.
But employees weren't willing to surrender their dignity or self-respect, said Rick Fudge, president of CEP Local 60, which represents some 200 workers in the woods division.
Union criticized for rejecting plan
The union has taken its share of criticism for rejecting the company's overtures, but Fudge doesn't have any regrets.
"The only regret I have is that it has come to this," he said.
The renewal plan called for the elimination of some 170 jobs and sweeping changes to the operation, including increased dependence on private contractors.
The proposed closure of the woods camp was an especially bitter pill for woods workers, said Fudge.
"Our workers don't have severance pay, they don't have pensions they can fall back on, and they don't have a job to fall back on. They knew that and they still didn't feel what the company was requesting was justified," he said.
Mayor keeping upbeat
The mayor of Grand Falls-Windsor, Rex Barnes, said it was a sad day for his town, but he said local leaders have been preparing for several years for such a reality.
He said the town is ready to work in partnership with the provincial government to fill the void.
"We're going to roll up our sleeves and start a new economy for the central region," he said.
Area MP Scott Simms called the closure a crisis situation and an economic catastrophe.
"This is a sad, sad day," he said.
Wilson's company, meanwhile, is one of several private contractors that supplies fibre to the mill. He employs up to 35 people during peak times, and owns a fleet of equipment that includes mechanical harvesters, forwarders and road-building equipment.
Unless he can find some other line of work, he may be headed for bankruptcy.
"I guess they'll end up taking it from us," he said, referring to the banks that financed the purchase of the equipment.
It's the latest blow to the forest industry. The integrated sawmill industry has been crippled in recent months, and in 2005, Abitibi Consolidated closed its mill in Stephenville.
troberts@thetelegram.com
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05/12/08
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Dennis Rice from St. Johns, Newfoundland and Labrador writes: Rex Barnes said that *local leaders have been preparing for several years for such a reality.*
Does this not beg the question of what preparations have been made?
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| Posted 05/12/2008 at 9:36 AM | Alert an Editor | Link to comment |
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frank lee from gfw, nl writes: same old nonesense the union said it knew what was best for keeping the mill open. they claim poor management was the problem. they also say the owners were always going to close the place and the union has known for years that the plan was to close the mill.
if they have known for years why didnt they put their money where their mouth is. years ago the union could have taken a percentage of each workers pay and built up a fund to buy the mill seeing as they always knew it was close. typical of unions they have all the answers but when it comes time to man up they go off snivelling and blaming others. the employer giveth and the employer taketh away. to bad the union with all the answers decided to do nothing.
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| Posted 05/12/2008 at 9:50 AM | Alert an Editor | Link to comment |
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H B from St. Johns, NL writes: It seems like Scott Simms is the one being realistic about this, not Mr. Barnes. I'm not sure what the town of Grand Falls-Windsor plans to attract, nor do I know how they will start a new economy for the town. The town is located in the middle of nowhere - just like Stephenville is. It's going to mean hard times for the people in that area, and I think the mayor should be respecting that, not talking about plans that they've made to help the town recover.
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| Posted 05/12/2008 at 10:18 AM | Alert an Editor | Link to comment |
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Barhop from NL writes: Buy the mill?
Are you serious Frank?
To which markets woud the union sell the paper?
Where will the Union and likely by extension the government (People of Newfoundland Labrador) find the money to keep the mill up and running. That mill is a maintenace nightmare. The current owners did'nt spend a fraction of what is required to maintain the friggin thing. Its like buying a rusty old car with half the pistons not firing and twisted chassis and expecting to just drive it without spending a dime on it.
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| Posted 05/12/2008 at 10:26 AM | Alert an Editor | Link to comment |
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Jim Power from Cookstown, Ontario writes: When will people realize that once upon a time there was a place for unions? As you can see with the auto sector and the closure of this mill that unions are crippling these industries especially in these economic times. People need to realize it is a give and take situation and it is better to have a job making less so the company can survive than to have no job at all. Unions are really good at blaming other people when what they should be doing is looking at all of their members and explaining to them why they should've not tried to work with the company instead of rejecting them. I guess they'll go and hide in their little cubby holes just like Buzz Hargrove.
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| Posted 05/12/2008 at 10:36 AM | Alert an Editor | Link to comment |
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Ties with Mill People from NL writes: If anyone believes that Mayor Barnes actually cares about the mill and its people, think again. He's already made it public knowledge that he is not seeking re-election and is wasting our taxpayers dollars by even being there in council. This guy doesn't have the knowledge to run a modern laundry machine, not along running this town. People in the next election, vote out the old and bring on the new. It's up to you to build our communitiy as there's no encouragement given by this council to attract new business. Rex is taking wha the can get and then getting out of here as that's the impression I get from him by his statements to the media in the past. Good luck on your future retirement and I bet he'll be the next retiree to relocate! Also, good luck to those who have to move to find new employment as you won't be the first to leave and you won't be the last.
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| Posted 05/12/2008 at 10:52 AM | Alert an Editor | Link to comment |
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David from NL writes: The pulp and paper industry, specifically newsprint, has been in decline for years and this time I don't think it's just a cyclical thing that will rebound. More and more people, like me, get their news online, if not to be more environmentally friendly or for just plain ease.
Abitibi Bowater can see this and were not prepared to guarantee millions of dollars of investment at this time. They made 2 final offers and the union members rejected both. I don't understand why people say they are shocked. The UNION MEMBERS voted to close down the mill at a time when other job opportunities are not there because of the world economic downturn. They are to blame here, not the management or ownership. The union members have killed 750 direct jobs and hundreds of other indirect jobs because of that stubborn union mentality. Well gues what, it come back to bite you in the behind and you have no one to blame but yourselves. It's a shame the 20% who didn't vote to reject and the rest of the town has to suffer for your stubborness or lack of foresight.
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| Posted 05/12/2008 at 11:23 AM | Alert an Editor | Link to comment |
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robert cater from gf/w, nfld writes: the many mill unions killed the mill and maybe my town. i agree with frank if the unions stopped for a minute and pulled there heads out of sand they may begin to understand that the employer is the one who built this town and he who pays the bills calls the shots. imagine the union ignorance to think they could bully a mutinational company. as far as the unionized workers go alberta is to the west . good riddence.
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| Posted 05/12/2008 at 11:57 AM | Alert an Editor | Link to comment |
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SANDY from NL writes: So we now HAVE not a paper mill and almost 1000 workers HAVE not a job in GFW, NL.
We do HAVE gas at $0.92 L as a HAVE province. All HAVE not provinces are paying $0.74 L. We lost our equalization funding that went to the HAVE not province of Ontario, where gas is $0.72L
Are we better off as a HAVE province? If so show me where and who.
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| Posted 05/12/2008 at 1:02 PM | Alert an Editor | Link to comment |
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Billy from NL writes: Well, the union is to blame for the closure of the mill. It seems just four years ago provincial government employees walked the picket line only to be told what they wold receive in their contract and then legislated back to work by Premier Williams. And if they didn't return to work the unions and individuals would be subject to fines.
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| Posted 05/12/2008 at 1:31 PM | Alert an Editor | Link to comment |
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Ches from Corner Brook, Newfoundland writes: I wonder how our new status as a Have Province will lessen the burden of the people who are losing their jobs?
I wonder of they will attend the big March 31, 2009 party to celebrate our Have Province status, or will they be elsewhere in Canada to find work.
We need jobs and opportunities in Newfoundland and Labrador.
Not shallow public relations announcements and gimmicks.
Mr. Premier, use your business ethos and get to work creating the environment so new jobs will be created here to keep our people here.
Cancel the foolish party.
Right now, the future is ours - it's just not here in Newfoundland thanks to your government.
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| Posted 05/12/2008 at 2:12 PM | Alert an Editor | Link to comment |
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David from NL writes: Can somoene explain to the people complaining about the Nfld gov't that the closeure of the mill has NOTHING to do with gov't.
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| Posted 05/12/2008 at 5:22 PM | Alert an Editor | Link to comment |
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Dave from NL writes: Abitibi has invested no new capital in the mill for years. They have done nothing to improve the environment of Newfoundland. The forest has been clear-cut into oblivion. What is their legacy?
Anyway, Scott Simms in on his way back from Ottawa to address the situation. He knows how to pluck the goose. There maybe some feathers left for Grand Falls.
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| Posted 05/12/2008 at 7:24 PM | Alert an Editor | Link to comment |
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