The Provincial Government is extremely disappointed in
the announcement made today by Kruger Inc. to shutdown the No. 1 paper
machine at the Corner Brook Pulp and Paper mill effective November 5 for
an indefinite period. It is anticipated the shutdown will impact
approximately 83 individuals and their families.
The Honourable Kathy Dunderdale, Minister of Natural
Resources, is in Corner Brook today to meet with union representatives
and officials from the City of Corner Brook to discuss today�s
announcement.
"The decision by Kruger Inc. is very disappointing and
we are very concerned about the impact it will have on the mill workers
being laid off, their families and the economy of the Corner Brook
region," said Minister Dunderdale. "Our government will continue to stay
in close contact with the company to ensure everything that can be done
is done to mitigate the impact of this decision on the employees, the
community and on other industries."
The company states the decision to shutdown the paper
machine is predominantly a result of the high value of the Canadian
dollar.
"The value of the Canadian dollar has increased by 40
cents since 2003, which has had a significant negative impact on the
pulp and paper industry across Canada. In the case of Corner Brook Pulp
and Paper, 85 per cent of its market is in the United States. There was
a very real potential that the company would be announcing much more
dire action today � the loss of two machines," the minister said.
"We met with Kruger officials last week and told them
very clearly that this was unacceptable. We reminded the company of the
support it has received from this government. In the last two years, we
have provided over $30 million in assistance to the pulp and paper
industry in this province. The company has revisited its plans and moved
ahead with today�s action that will see the shutdown of one machine. The
impact of their business decision has been lessened because of the
significant support this government has provided, and continues to
provide, to this industry."
Minister Dunderdale said the Provincial Government
will continue to work with the company and the union on the issues
facing the industry as it restructures to ensure it remains sustainable
and viable and has a strong future in Newfoundland and Labrador. A
consultant is currently undertaking a comprehensive review of the
island�s forestry sector to outline challenges and opportunities and
identify a path forward for a
new and sustainable industry that meets the demands of today�s global
economy.
The Provincial Government has indicated it will work
with the union and the affected employees through this difficult time.
The Department of Human Resources, Labour and Employment will provide
advice and direction, as necessary, to these employees. Services Canada
federally provides programs for retraining and counseling for EI
eligible persons. HRLE provides similar services for non-EI eligible
persons.
If impacted individuals are EI eligible, they can
contact the Corner Brook Services Canada office at 709-637-4201. If they
are not EI eligible, they can call the local HRLE office at
709-637-2308. HRLE can also assist employees in their contact with
Services Canada if required.
