Corner Brook Pulp and Paper Mil Shutdown to Have Ripple Effect Across Western Region

SEATTLE (Scrap Monster): The negative impacts caused by the proposed two-week shutdown and the subsequent job losses at the Corner Brook Pulp and Paper mill is feared to have ripple effect on mills across the entire western region and central Newfoundland and Labrador. The statement released by the company to announce shutdown and job cuts suggests that the shutdown may not be a one-time occurrence.

On Friday, the company had announced its decision to halt production on Christmas Eve for a period of two weeks. The production is scheduled to resume on Jan 6, 2020, it said. Further, it noted that the company would be forced to declare temporary interruption in production over the winter in order to balance its order book.

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As part of efforts to contain labour costs, the company also announced restructuring plans, leading to loss of permanent status for some workers at the mill. As a result, 22 affected employees will move into the mill’s casual pool.

Meantime, Paul Humber, president of Unifor Local 242 noted that the downtime is necessary for inventory adjustment. He hoped that the downtime does not extend any further.