Corner Brook's mayor says that newspaper reports that 90 jobs may be cut at the provinces last Pulp & Paper Mill are not true.
CBC is reporting that he has spoken with the senior management and has been told that " union and management will meet to "discuss the situation at the mill. The union that represents workers at the mill, the Communications, Energy and Paperworkers Union Local 242, has not been told anything about today’s meeting. The Western Star is reporting that the unions have not yet been
officially notified of the job cuts, but that notification will occur today.
This past weekend, Justice Minister Tom Marshall, and Humber East M.H.A , confirmed the provincial government has been
told the company is expecting to cut jobs through attrition at the
Corner Brook mill. The Star reported on the weekend that 90 jobs would be lost. The source said the
cuts would affect both management and union employees in the mill and in
the woodlands operation.
Workers in the mill provided a loan to the company in the form of a a 10
per wage deferral. Workers will get the money back when the mill returns to profitability. 130 jobs were cut in June 2009 . Two paper making machines have been shut down since 2007. There are still two in operation.
In the 2010 provincial budget, the province announced that
Corner Brook Pulp and Paper will receive $15.4 million in assistance. That help came in the form of increasing the
province's share of the annual silviculture program, as well as
foregoing the company's annual financial contribution to the forest
inventory program, forest insect control program and managed land tax. In exchange for this assistance, government has reached an agreement
with the company for certain licensed timber rights to revert to the
In May, 2011 the provincial government announced that it would invest $4.3 million, over three years,
into Corner Brook Pulp and Paper that will see employees receive
enhanced training to improve the mill’s
The mill employs roughly 500 people. Quebec based Kruger Inc.purchased the mill from Bowaters in 1984. The mill began operations in 1925 as the Newfoundland and Labrador Power and Paper Company.
Much of the companies energy needs are self-supplied through hydro-electric plants in Deer Lake (129MW) and Watson's Brook in Corner Brook. An additional 7-10 MW is provided via a co-generation turbine that burns 713 tonnes a day of biomass .
If a mill with Corner Brook's competitive advantage and all of the government subsidies can not make a go of it, than the Pulp and Paper Industry is all but finished.