Paper mill to layoff 100 people
SNOWFLAKE - More than 25 percent of the workers at the Catalyst Paper Mill outside Snowflake will lose their jobs.
About 100 positions will be affected when the mill's corrugated paper medium line is closed down no later than Oct. 15, General Manager John Mckee said.
The equipment, which manufactures the accordion-folded inner material used in corrugated cardboard boxes, is owned by Smurfit-Stone but was operated and maintained by Catalyst workers. The move will affect all employees at the paper mill.
"This will be difficult on the people side," Mckee said. "The equipment side is easy but this will impact people's lives and their communities.
"We will have to go back and look at our positions to make sure we're running efficiently. We can't afford a high cost of making newsprint. We're seeing an overall decline in the use of newsprint. It makes it challenging to those who have to compete for the market."
Although Smurfit-Stone set the cut-off date of Oct. 15, Mckee said it could happen earlier. They will come in and take out their equipment. In the meantime, Catalyst will continue to look at things to remain profitable. McKee said not a lot of newsprint equipment is manufactured in the United States but it doesn't mean they won't keep working.
Mckee said it won't be just people who work on that equipment. Some of those who run the pulpers and who load the rolls on trucks and railcars won't be needed.
"A certain number of the technical staff also supports that operation," he said. "Each job will be reviewed. As difficult as it is, we have to make sure we will be running effectively on a long term basis."
No other jobs are available at the plant, McKee said, adding it's the devastating part of the people's side of the decision.
"There will be a spin-off in the community," he said. "Some may leave the area and the others will have to find other employment."
Although this move may come as news to those not working at the mill, Mckee said it had been talked about to employees for the past several years. The machine has been in place since Stone Container sold the mill about 10 years ago, he added.
While there is regret that the layoff has to occur, Mckee said, "We have an outstanding workforce. A lot of people from Catalyst (which bought the mill in February) have come here and are always impressed by our workers. That makes this move even more difficult. "Catalyst is taking this very seriously," he said.
The paper mill had been owned by Abitibi Consolidated but, when that company made the decision to merge with Bowater to become AbitibiBowater, the Department of Justice dictated that the profitable mill had to be sold because it could create something close to a monopoly.
Smurfit-Stone had a 10-year contract with the paper mill which began when Abitibi Consolidated purchased the plant. The contract ran out this year, Mckee said.
About 100 positions will be affected when the mill's corrugated paper medium line is closed down no later than Oct. 15, General Manager John Mckee said.
The equipment, which manufactures the accordion-folded inner material used in corrugated cardboard boxes, is owned by Smurfit-Stone but was operated and maintained by Catalyst workers. The move will affect all employees at the paper mill.
"This will be difficult on the people side," Mckee said. "The equipment side is easy but this will impact people's lives and their communities.
"We will have to go back and look at our positions to make sure we're running efficiently. We can't afford a high cost of making newsprint. We're seeing an overall decline in the use of newsprint. It makes it challenging to those who have to compete for the market."
Although Smurfit-Stone set the cut-off date of Oct. 15, Mckee said it could happen earlier. They will come in and take out their equipment. In the meantime, Catalyst will continue to look at things to remain profitable. McKee said not a lot of newsprint equipment is manufactured in the United States but it doesn't mean they won't keep working.
Mckee said it won't be just people who work on that equipment. Some of those who run the pulpers and who load the rolls on trucks and railcars won't be needed.
"A certain number of the technical staff also supports that operation," he said. "Each job will be reviewed. As difficult as it is, we have to make sure we will be running effectively on a long term basis."
No other jobs are available at the plant, McKee said, adding it's the devastating part of the people's side of the decision.
"There will be a spin-off in the community," he said. "Some may leave the area and the others will have to find other employment."
Although this move may come as news to those not working at the mill, Mckee said it had been talked about to employees for the past several years. The machine has been in place since Stone Container sold the mill about 10 years ago, he added.
While there is regret that the layoff has to occur, Mckee said, "We have an outstanding workforce. A lot of people from Catalyst (which bought the mill in February) have come here and are always impressed by our workers. That makes this move even more difficult. "Catalyst is taking this very seriously," he said.
The paper mill had been owned by Abitibi Consolidated but, when that company made the decision to merge with Bowater to become AbitibiBowater, the Department of Justice dictated that the profitable mill had to be sold because it could create something close to a monopoly.
Smurfit-Stone had a 10-year contract with the paper mill which began when Abitibi Consolidated purchased the plant. The contract ran out this year, Mckee said.
Labels: Catalyst Paper Mill, layoffs
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