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Union says layoffs at Manitoba paper mill Tolko ‘deer-in-headlights stuff’

Aug 23, 2016 | 10:45 AM

THE PAS, Man. — A spokesman for Canada’s largest private-sector union says word that a big northern Manitoba forest products plant is shutting down  has left staff at the mill stunned and feeling “pretty gutted.”

Tolko Industries has announced that the plant near the town of The Pas will close Dec. 2, putting 332 employees out of work.

Paul McKie, the national representative for Unifor, says employees were not expecting such harsh news from Tolko, which bought the Manitoba Kraft Paper and Sawmill Operations in 1997.

He says the pulp-and-paper industry is in decline and any chance of keeping the town’s largest employer open appears remote because no one is lining up to buy forestry plants these days.

He also says tens of thousands of paper workers across Canada are already laid off, and many employees at the Tolko plant will have to decide whether they should move or stay and try to change careers.

Tolko CEO Brad Thorlakson said in a release on Monday that the decision wasn’t made lightly, but the plant is not “financially sustainable” despite years of trying to improve results.

“It certainly looks bleak. It really was deer-in-the headlights stuff,”  McKie said Tuesday. “We’re going to do everything we can to mitigate the bad news, but I also don’t want to throw out false hope for the workers either.”

Unifor has two locals at the mill that cover about 265 workers who get severance under their collective agreements. More details on layoff packages are expected next month.

McKie said he understands that Tolko had approached various levels of government looking for assistance. He suggested the fact the mill is closing is a sign help was not forthcoming.

The Pas Mayor Jim Scott has said the company didn’t give him any indication that it was in financial trouble. Scott said he and council will discuss possible solutions, which may include making a request to the Manitoba government for funding.

“Tolko pays property and other taxes to the town, which it uses to pay its own staff and provide services. I would suggest the impact on the community will be significant,” said McKie.

He also noted the closure will have a huge impact on the First Nation and Metis communities in the area.

“Many people from these communities are contractors who supply logs and chips to the mill.”

In a statement, the Manitoba government said it was “disappointed” with Tolko’s decision.

“However, we will ensure that necessary supports are in place for the affected Tolko workers and their families,” said the statement from Cliff Cullen, minister of growth, enterprise and trade. “Our government will be actively monitoring Tolko’s future obligations respecting transition package arrangements.”

Cullen said the focus should shift to “exploring more creative and innovative alternate models for this sector.”

“This development reinforces the need for further economic diversification and development in northern communities,” the statement said, adding a northern economic development program is forthcoming.

Private railroad company Omnitrax, another large northern employer, announced last month that there will be no grain shipments from the Port of Churchill on Hudson Bay this year. The port has employed about 10 per cent of the small town’s 800 people during seasonal operations. Omnitrax has not given a reason for the decision.

The MP for The Pas has called on Ottawa to step in along with the provincial government.

“This coupled with the closure of the Port of Churchill is further devastating to our North,” said NDP MP Niki Ashton. “We have a federal government that says it cares about job creation and sits by while the North bleeds jobs.

“We have a provincial government that is betraying the North. It’s time to change course.”

The Canadian Press