Multiply Mill production may resume Tb News Source Web Posted: 2/26/2007 7:53:17 PM There may be some good news for Nipigon's Multiply Mill.
Unconfirmed reports indicate a deal has been reached to use the
mothballed Longlac Wood Products Mill on a short-term basis. While
Multiply officials have been unavailable for comment Monday, it's
believed they hope to be able to generate enough product to at least
cover the needs of key clients. There's no word on how quickly the
Longlac site can be brought into production.
Nipigon's largest employer was gutted by fire early this month
putting 120 people out of work. Efforts continue to determine what
caused the blaze while the ownership group says it is committed to
rebuilding the operation in Nipigon. But its first priority has been to
establish a temporary production facility to supply it's client base and
it appears that problem has been solved.
Fire Destroys Nipigon Mill
By CARL CLUTCHEY Feb 7, 2007, 22:58
As the worst fire Nipigon has ever experienced pierced the frigid air
Tuesday with ear-popping explosions, it caused many hopes and dreams to
detonate as well. About 120 plywood workers and their families
watched helplessly as the massive blaze destroyed their town’s wood
mill, filled the air with stinking black smoke, drained the local water
supply and put the tiny community on evacuation alert. “At this
moment, it’s still out of our hands,” Multiply Forest Products
vice-president Doug Melien said at nightfall as the fire continued to
rage. “I am just sick about this.” The fire is believed to have
started at daybreak Tuesday around a lathe inside the production plant
of the 50-year-old mill, which manufactures flooring underlayment. There
were no reports of injuries. By noon it appeared as though
firefighters had the blaze under control and that it might be contained
to a portion of the production building. But by mid-afternoon, as an
icy wind fanned the flames, it was clear the fire was out of control,
and about 30 firefighters could only watch it burn and make sure it
didn’t spread to 20 homes on adjacent Park Street. “We are in a defensive mode,” said Nipigon fire Chief Roy Cross. “We’re going to be here for a while yet.” A
southerly wind blew billows of black smoke out into Lake Superior.
Residents in the town of about 1,500 were to be evacuated to the rec
centre at nearby Red Rock if the wind changed direction.
What made the sight of the flames more painful was the knowledge that
in December, a local management group had purchased the aging Nipigon
plant and was planning to spend $4 million to modernize it. Workers had agreed to loan the new owners $300,000 to help the plan succeed, and the province kicked in another $400,000. “A
lot of people have poured their life savings into this mill,” said
Nipigon Mayor Richard Harvey. “When I talked to workers and their
families (Tuesday) and asked how they were doing, they just said, ‘I
don’t know.’” Melien said the new management group would like to rebuild the operation, which was insured for $66 million. But he said it was too early to say what the next step will be. “A lot of decisions have to be made in a very short time,” Melien said. As
the fire spread into the mill’s offices and inventory stockpile, the
Township of Nipigon declared an emergency and advised residents to use
water sparingly until the town’s drinking-water reservoir — depleted by
the massive firefighting effort — has been replenished. A boil-water advisory is to remain in effect for at least a few days, said Harvey. Nipigon
District Memorial Hospital reported it had enough water to flush
toilets, but was making arrangements to bring in bottled water. Homeowners worried about the prospect of freezing pipes if the reservoir didn’t come back up overnight. Meanwhile, Nipigon merchants tried to put on a brave face as the town faced the prospect of losing its major employer. “We’re constantly re-evaluating our business,” said Canadian Tire operator Rick Smith, who employs 17 people. “We
have a large customer base so I don’t think it will impact our
business. You have to persevere through something like this.” The plan
to rejuvenate Multiply followed a decision in November to lay off 300
workers at the Norampac linerboard mill in Red Rock. Red Rock Mayor Sam
Sobush said discussions to get that mill reopened continue, and will
largely depend on the company’s ability to secure a long-term wood
supply.
A small glitch has arisen in the effort to re-open Thunder Bay's
Cascades Mill. Backers of the plan says they hope to have all obstacles
out of the way in less than a week. Wednesday was the deadline for a
group of private investors to finalize their financial agreement with
the group looking to revive the operation. But Thunder Bay Fine
Papers spokesperson Andre Nicol says one of the investors involved in
examining the proposed business plan was forced to temporarily suspend
the process because of a personal issue. Nicol terms the delay as
simply a momentary setback and says they expect to be able to announce
the final go-ahead soon. Once back on line, it's expected the operation
will provide employment for 340 people.
Two Forestry Giants Unite
Tb News Source Web Posted: 1/29/2007 7:57:53 PM
There seem to be more questions than answers regarding the future of
the new AbitibiBowater Inc. Local Abitibi Consolidated and Bowater
Officials have refused to give details behind the merge, and the
possible implications for Northwestern Ontario. Canadian Energy and
Paperworkers Union Representative Marvin Pupeza says at this point they
don't know what this merge means for the local mills or job security.
Pupeza says Bowater is going through a restructuring program that has
a deadline of February 15th, and he says now they'll need their
questions answered before they move any further. Canadian Energy and
Paperworkers Union Representative Rene Lindquist says at this point, he
doesn't know what will happen, but he says he does know there will be
some restructuring.
Chamber of Commerce President Mary Long Irwin says her understanding
is this is good news for the region, making the companies more
financially stable. And she says this puts the company in a stronger position to compete globally .....allowing for a better chance of job security.
Ontario Forestry Coalition Chair Iain Angus says this merge doesn't
surprise him, as he says any industry in crisis has to look at ways of
reducing costs. And he says it's business as usual for the coalition,
as there are still things which need to change in the Ontario forestry
industry to secure jobs and make it more competitive.
Abitibi Consolidated and Bowater will continue their separate
operations until the transaction closes. And it's expected to be
completed in the third quarter of this year.
Forest Industry Giants Join Together
Tb News Source Web Posted 1/29/2007
A major corporate merger leaves many questions about the impact on
Thunder Bay. Abitibi and Bowater have announced plans to join together,
part of a stock-swap deal to create a firm with annual revenues of
approximately 9.3 billion. The combined company, known as
Abitibi-Bowater would have a head corporate office in Montreal, with U.S
offices located in South Carolina. The website for the newly merged
company already has both Bowater and Abitibi on its banner. There
Ontario, and there is no word as yet how the merger might affect the
operations in Thunder Bay and Northwestern Ontario.
Greenstone Wants in on Forest Plan
Tb News Source Web Posted: 1/26/2007 5:32:43 PM
Councillors in Greenstone say they want a seat at the table in the
formulation of a co-operative, sustainable management agreement for the
Kenogami Forest.
Located east of Lake Nipigon, the area has been under dispute since
the transfer of Neenah Paper to Buchanan Forest Products. Several
groups, including Buchanan, area native bands and labour unions, have
come forward looking for a say on how the forest is used. Greenstone
Councilor Tim Griffin says the municipality will be very loud about
wanting a seat at that table, something the Ministry of Natural
Resources has told councillors, they are considering. Council is not
taking sides says Griffin, who adds that they're working with the
companies in the area as well as affected parties like the steel-
workers union. However, he says council will continue to advocate for
social and economic benefits from the Kenogami Forest to come to
Greenstone.
Cascades Deal Going Smoothly
Tb News Source Web Posted: 1/25/2007 5:44:33 PM
The clock continues to tick on efforts to re-start the city's
Cascades Mill. Thunder Bay Fine Papers, the group trying to revive the
operation, says they and a group of private investors are continuing the
due diligence required to finalize their financial agreement.
The deadline for the deal to come together is just a week away,
January 31. The unnamed investors group continues to pour over the
business plan outlined by Thunder Bay Fine Papers, trying to ensure the
project will be economically viable.
Thunder Bay Fine Papers spokesperson Andre Nicol says everything to
this point has been going very smoothly. He says there have been no
major stumbling blocks in negotiations and that optimism remains high.
Nicol adds that as far as he is concerned, the mill should resume
production before spring. Once back on line, it's expected the operation
will provide employment to 340 people.
OFC Chair Chides Government
Tb News Source Web Posted: 1/23/2007
We're not going away until the forest industry is competitive again.
That was the message delivered by the Ontario Forestry Coalition to the
province's Standing Committee on Finance in Kenora Tuesday.
Coalition chair Iain Angus told the committee some progress has been
made, but much remains to be done to get the forest sector on a
competitive footing. He urged the government to maintain stumpage fees
and continue to cut back on red tape. And he reasserted the industry's
need for a cut in electricity costs to 45-dollars a megawatt hour. Angus
also used the presentation to chide the McGuinty government over its
stand that it could do no more for the industry. He says at no time has
that position been taken with the auto industry. He says the government
must recognize forestry is also a vital component of the province's
economy.
National Protest by Forest Workers
Tb News Source Web Posted: 1/22/2007
Communications, Energy and Paperworkers Union members across the
country say they want to break the silence about the forestry sector job
crisis.
Although it isn't a secret to the many communities affected by the
industry downturn, union members say the situation is being completely
ignored by the federal government. Today the union launched an e-mail
campaign to pressure the government, on their National Day of Protest
for forest sector jobs.
Members from Canada's largest union of forestry workers protested all
across the country Monday, with local members making some noise of
their own. With several mills in the region shut down and others
following the same path, local CEP representatives say Northwestern
Ontario's failing forestry industry is not being acknowledged with one
spokesperson saying "being ignored is an understatement."
MP’s e-mail accounts will be bombarded with emails. Over 3,000 union
members in Northwestern Ontario alone, are expected to send an e-mail to
their local MP, voicing their concerns about the forestry sector job
crisis. National Representative, Marvin Pupeza says local mills continue
to hang on by their fingernails, with several work forces facing
layoffs.
CEP Members say energy remains a major factor in the ongoing crisis,
as well as fibre costs and the overall lack of investment. CEP Local 39
president, Gary Bragnalo says funding is needed in order to lower cost
operations at the mills. In Ontario, over 10,000 jobs in the forestry
sector have been lost during the crisis, 700 in Northwestern Ontario.
Union officials say if they aren't heard today, they will continue to
make noise, until attention is given to one of Canada's most important
industries.
Mill Retiress Launch Lawsuit
By JONATHAN WILSON Jan 19, 2007, 23:49
A lawsuit has been launched by three Kimberly-Clark and Neenah Paper
pensioners in an effort to stop clawbacks to their post-retirement
benefits and punish the companies for their action. The $5-million
suit — filed in Thunder Bay under the Class Proceedings Act — calls the
company’s actions “arbitrary, callous and high-handed.” The Terrace
Bay pulp mill’s pensioners were shocked in August when Neenah Paper
announced hefty increases in the cost of premiums for their benefits. The changes mean retirees who once paid about $40 a month for coverage would now pay up to $300 by 2008. “I
think it’s immoral what they’re doing,” retiree Richard Flanagan, 59,
said in August. “I’m retired,” added fellow retiree Sonny Borsa. “I just
don’t have that money, it’s crazy.” Flanagan, who retired from Neenah
Paper in May 2005, along with Alan Chisholm, 74, and Althea Graham, 65,
filed the suit on behalf of themselves and about 1,500 former
Kimberly-Clark and Neenah Paper pensioners in the Terrace Bay and
Longlac areas. The statement of claim alleges that Neenah Paper
unilaterally altered the retirees’ life insurance and health benefits at
an age when they were most vulnerable to health problems. “The
defendants blatantly and without justification have sought to impose a
substantial financial burden on the retirees at a point in their lives
when they are unable to absorb (it),” the suit states. None of the
claims have been proven in court. Toronto lawyers Michael Wright and Hugh O’Reilly, who specialize in pension and benefits cases, are handling the suit. Wright
said Neenah and its predecessor in Terrace Bay, Kimberly-Clark, have
stonewalled retirees’ efforts to compromise on the issue. “Various
employees have contacted them concerned about this,” Wright said
Thursday. “They’ve simply been told that the benefits are expensive and
(Neenah) can’t afford them.”
The claim seeks $5 million in punitive damages, along with an
undetermined reimbursement of additional benefit payments forced upon
the retirees. Wright said if successful as a class-action lawsuit,
the claim would be spread among all former employees, resulting in
payouts of about $3,300 apiece. “Five million seems like a large number,” Wright said. “But when you divide it by 1,500 people, it’s actually quite modest.” Wright said class-action lawsuits often convince employers to offer a settlement. His
firm handled a 2002 class-action lawsuit brought by 51,000 retired
civil servants against the Province of Ontario for the same scenario.
The province agreed to an undisclosed out-of-court settlement. The
first step is a motion for certification in which the court is asked to
allow a class-action suit based on the three plaintiffs, their common
issues, and the presentation of a workable litigation plan to advance
the case. “At this point, it’s simply an intended class proceeding,” Wright explained. “The
judge presiding has to make decisions on those issues, and then the
case continues.” Wright expects the motion for certification will take
place this year. The 21-page statement of claim was filed in Thunder
Bay’s Superior Court of Justice on Dec. 20, and served to defendants
Kimberly-Clark on Dec. 23 and Neenah Paper on Dec. 28. Wright said that
under class-action laws, the companies are not required to respond to
the suit until it is certified. “These things can take a few years,
which is a huge concern when you’re acting for a group of retirees,”
Wright said. Officials with Neenah Paper Retirement Services did not
return calls Thursday.
Forest Companies, Unions, MPs, Muncipalities, and Environmental Groups jointly address forest crisis
Transmitted by CNW Group on : January 18, 2007 10:32 Ottawa, Jan. 18 /CNW Telbec/
Major stakeholders in Canada's forest industry are coming together to
look at solutions to the crisis that has thrown thousands out of work,
jeopardizing dozens of communities. The Communications, Energy and
Paperworkers Union of Canada is holding a symposium on the future of
Canada's forest sector with industry leaders from the Forest Products
Association, MPs from all federal parties, city mayors, unions and major
environmental groups, including the David Suzuki Foundation and Friends
of the Earth.
When: Monday, January 22, 2007, 10 am to 3pm Where: Parliament Hill, West Block, Room 209N/269
"The industry is facing unprecedented hardship impacting on more than
300,000 Canadians who depend on it for their livelihoods," says CEP
President Dave Coles. "There are solutions to this crisis - solutions
based on the fair treatment of workers and their families, sustainable
forest practices, value-added productivity, and more. But the first
step toward them is to break the silence and open discussions with all
parties affected." The symposium is being held on the CEP's National Day
of Action for Forest Jobs, as federal MPs receive thousands of e-mails
from their constituents calling for job stability and economic
rejuvenation. The union's e-mail campaign is being boosted by radio ads
airing Jan. 22 on 72 stations across Canada.
For further information: Alan Tate, (613) 230-5800, ext. 277, (613) 295-9535 (cell.) Michelle Walsh (613) 230-5800, ext. 222, (613) 858-9144 (cell.)
Fort Frances Unions Onboard
Tb News Source Web Posted: 1/12/2007
All four unions at the Fort Frances Abitibi Consolidated mill have ratified a new contract extension. The
company says the it's an agreement that gives the company long-term
labour stability in exchange for a guarantee to workers that Abitibi
Consolidated will build and operate a new bio-mass boiler. The agreement
means that local union's contracts won't have to be renegotiated in
2009. Members voted on the agreement Tuesday. Now, the company's
board of directors must approve the boiler project. The proposed
bio-mass generator would use wood waste to generate steam and
electricity to the mill, resulting in significant cost savings.
Investors Move Forward
Leith Dunick - TB Source
Things are looking up for as many as 340 former workers at the
Cascades paper mill in Thunder Bay. Dennis Bunnell, president of Thunder
Bay Fine Papers, announced his group is in the final negotiation stages
with an as-yet-unnamed group of investors intent on reopening the mill
as early as the end of March. “They are a very credible company that has
tremendous assets, and they have experience in the paper industry,”
Bunnell said. “As of now we can’t tell you who they are, it’s a
confidential situation.” The investors, confirmed as Canadian, are in
the midst of a due diligence process, which allows them to map out a
feasible business plan based on the ability to market the product,
overall costs and the presence of a suitable, qualified workforce to
produce the specialty coated paper the plant would make.
Bunnell said until the due diligence process ends on Jan. 31, there
are no guarantees the mill, which closed a year ago, will reopen, but at
this stage he is confident it will happen.
“They have to understand the mill can be profitable. And if they come
up with some-thing that leads them to think otherwise, that funding
source can disappear. That’s a possibility,” Bunnell said.
There are two other companies waiting in the wings for an opportunity to partner with his lobby group, Bunnell added.
Among them are the $350-million loan-guarantee program, a
$150-million grant program and the $140-million energy-effi-ciency
program that could provide a one-cent per kilowatt hour savings to the
mill on its electricity costs. “This is going to be very beneficial to
the bottom line of our pulp and paper plants, especially a new
operation,” trumpeted Ramsay. “You struggle when you first reopen a
plant like this, and to have this up-front assistance is going to be
very helpful.” Deciding which workers will be welcomed back on the job
won’t be an easy task, said Canadian Energy and Paperworkers Union
representative Marvin Pupeza, who expects about 150 full-time workers to
be among the initial callback. “The tricky part is to go through the
seniority list and the qualifications of people that have them, not only
initially, but also looking at the long-term of staffing this whole
mill on a going-forward basis in probably about a year’s time,” Pupeza
said.
Thunder Bay Mayor Lynn Peterson was literally dancing a jig at the
news, and said it’s a prime example of the good that can be done when
people work together.
“It’s wonderful news. It’s a great way to start the New Year. It’s
340 people that are potentially employed, that’s $18 to $20 million in
payroll, and beyond that payroll is the spin-off in terms of spending
that money within the community. It’s good for people’s lives,” Peterson
said.
Employees buy Nipigon mill
Tb News Source Web Posted: 1/9/2007 7:51:42 PM
Nipigon's Multiply Forest Products has announced a change in ownership.
It was announced Tuesday that employees of the mill have purchased
the operation from Columbia Forest Products of Portland, Oregon.
Financial terms of the sale have not been released. The mill has been in
operation since 1956 and produces hardwood flooring underlay.
Along with the sales announcement, it was also announced that a $4
million modernization program will be undertaken at the mill. The
company will continue to do business under the name Multiply Forest
Products.
Abitibi's Mission Mill up and running
Tb News Source Web Posted: 1/8/2007 5:54:37 PM
A Thunder Bay mill is back in production after being idle for the
past three weeks. Abitibi Consolidated's Mission Mill resumed operations
Sunday. Following the announcement of a temporary shutdown on December
17, there were serious questions about the long-term future of the
operation. The mill has been hit with a series of shutdowns since
October and union officials don't expect them to end anytime soon.
Communications, Energy and Paperworkers Union National Representative,
Rene Lindquist says right now, workers are just trying to keep their
heads above water.
Lindquist says the union is doing everything it can to help the mill
survive and make it competitive for the future. But he acknowledges the
high cost of operations at the Mission Mill continue to be a concern.
Over 250 insider workers, as well as woodland workers, have been affected by the temporary layoffs.
Bowater Plan Moves Forward
Tb News Source Web Posted: 1/5/2007 7:33:35 PM
A plan to map out cost saving measures for Thunder Bay's Bowater operation is close to completion.
The planned restructuring of Thunder Bay's Bowater operation is now
one step closer to moving ahead, and it will go forward with the
cooperation of the union representing employees at the mill. All sides agreed on a letter of intent to work out how best to implement restructuring. At
the end of November, Bowater employees and their families assembled for
a two-night information meeting on some of the activities the company
would be pursuing to save costs at the mill. Following two days of
'spirited' discussions between Bowater and the unions representing their
employees, a mutual decision has been made to put a joint process into
place on how to move forward at the mill. Pupeza says a letter of
intent will soon be signed identifying cost saving objectives at the
Bowater mill and the means of reaching those objectives. He hopes this
can be achieved without any loss of employment at the operation.
Cascades Deal So Close!
Chronicle Journal January 5th, 2006
The purchase and reopening of the Cascades coated paper mill in Thunder Bay is a step closer, but it’s not a done deal yet. Dennis
Bunnell, president of Thunder Bay Fine Papers, announced at a packed
news conference Thursday that his company has taken a major step in
reactivating the mothballed mill. It has signed a letter of intent
with a major Canadian private investment group “with tremendous assets”
that is experienced in the forest sector. Bunnell didn’t identify the group. When
fully operational, Cascades will provide employment to about 340
people. Bunnell said the plant could be operating by the end of March. But he admitted the deal could also fall through. “The key is the funding source has to the end of January to complete due diligence,” he told reporters. “That
means they have to understand the mill will be profitable and if they
come up with something that leads them to think otherwise, that funding
could disappear. “That’s a possibility,” Bunnell said. “If it
doesn’t happen, there’s going to be a lot of egg on a lot of faces,”
said Marvin Pupeza, national representative for the Communications,
Energy and Paperworkers Union. Bunnell said he is “reasonably confident” the investment group will purchase the mill. Pupeza said because there is a letter of intent, something major would have to happen for the deal to fall apart. “There’s
been a due diligence process ongoing for some time now, so I imagine if
there is anything to be found they would have found it by now,” Pupeza
said.
While Bunnell said Thunder Bay Fine Papers has taken a major step to reopen the mill, the province was taking it a bit further. “McGuinty
government helps reopen Thunder Bay mill,” said a heading on a news
release issued Thursday by the Ministry of Northern Development and
Mines. That wasn’t the news from Cascades head office in Kingsey Falls, Que. A spokeswoman said company officials have been talking to Thunder Bay Fine Papers for the past year. “We’re waiting for a final proposal from the Thunder Bay group,” said Christine Beaulieu. “The ball is in their court.” The
standing-room-only crowd at the Thunder Bay session Thursday included
labour officials, MPPs, former and present city councillors, Mayor Lynn
Peterson and business people ranging from an owner of a car dealership
to a funeral director. Bunnell said local individuals have invested
about $150,000 in the venture while the city has also contributed
financially. He didn’t have the city’s figure handy. Andre Nicol,
spokesman for the local investors, said the investment group has
completed the vast majority of research into the mill. “They wouldn’t have signed that (letter of intent) unless they knew this was actually going to go forward,” he said. “They wouldn’t have come this far if they thought there was an iffy chance of it going or not.” Nicol didn’t divulge details of the purchase from Cascades. The
Northern Ontario Heritage Fund Corporation provided $96,250 to help the
City of Thunder Bay develop a business plan that Thunder Bay Fine
Papers used to strike the necessary partnerships. If the private investment group purchases the mill, more provincial funding will be available. Natural
Resources Minister David Ramsay, who attended the news conference, said
funding would be available through the $350-million loan guarantee
program, $150-million grant program and $140-million Electricity
Assistance Program which would knock one cent off a kilowatt hour on
Cascade’s usage. Ramsay said he was confident Cascades would qualify for funding. “We think everything they’re applying for perfectly fits our programs,” he said. Peterson said if the mill reopens it will have a huge impact on the community. “It
will mean security, it will mean homes, it will mean education for
their children,” she said, referring to the economic impact generated by
the estimated $18-million to $20-million payroll.
Cascades to Reopen
Tb News Source Web Posted: 1/4/2007 11:46:48
This could be the best news Thunder Bay might get this New Year. The
official announcement that Cascades will reopen was given Thursday
morning by Natural Resources Minister David Ramsayalong with company
officials. The group purchasing the group from Cascasdes announced
that the company has signed a letter of intent with a major Canadian
investment group looking to provide the additional funding requiredto
lower operating costs and reopen the mill. When the mill officially
gets up and running it could provide jobs to about 350 workers. The
plant shutdown almost a year ago, affectingnearly five hundred jobs.
Ontario Forest Industy Still in Crisis
Says CEP's Makowski OTTAWA, Jan. 4 /CNW Telbec
Today's announcement about the potential re-opening of the former
Cascades mill in Thunder Bay is "great news", says Cec Makowski, Ontario
Region Vice-President of the Communications, Energy and Paperworkers
Union of Canada, but should not mask the ongoing jobs crisis in Northern
Ontario. "The people in Thunder Bay, especially CEP members, deserve
nothing but congratulations and credit for making this happen," Mr.
Makowski said but Premier McGuinty and Natural Resources Minister David
Ramsay need to focus now on the rest of the industry. "Both Mr.
McGuinty and Mr. Ramsay continue to ignore the collective voice of the
municipal councils in 17 northern communities which have demanded a
union backed proposal calling for public hearings to solve the jobs
crisis in the forestry sector in Ontario," Mr. Makowski added. "The
news in Thunder Bay today is great news. My Union, in partnership with
municipal leaders and local business interests, has led the way to
restoring several hundred jobs to our community. "But there are
dozens of other communities and thousands other workers who still face a
very bleak future indeed without meaningful provincial government
action on issues such as energy and fibre costs," Mr. Makowski said.
