Tembec plant in Pine Falls for sale

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This article was published 08/12/2009 (5961 days ago), so information in it may no longer be current.

Tembec is putting its Pine Falls plant up for sale or will close it if it can’t find a buyer by early next year.

Tembec locked out its 270 unionized employees Sept. 1 after the union rejected a proposal to cut wages and benefits by 35 per cent.

The Quebec-based company said in a news release that “it is in the best interest of Tembec and the employees of the Pine Falls mill that we exit that site.”

North American demand for newsprint has dropped almost 50 per cent since 2003.

Tembec posted a loss of $38 million in the second quarter.

The province announced this afternoon that it would provide $1 million to the Pine Falls community to help them adjust to the changes that are coming.

Labour Minister Jennifer Howard said the province will help with the establishment of a community adjustment committee of local leaders and workers.

“The closure of the mill is a traumatic event for workers, their families and the community of Pine Falls,” Howard said. “We will do everything we can to help them cope with the impact.”

Selinger said the $1 million could be used to study if it is feasible for workers and/or the community to buy the plant. Or it could be used to look into “additional economic development opportunities in that area.”

The premier and Labour Minister Jennifer Howard travelled late Tuesday to Pine Falls to meet with community leaders.

The Tembec announcement dominated question period in the legislature Tuesday, with the Opposition accusing the government of ignoring the plight of the 270 union workers until now.

Both Conservative Leader Hugh McFadyen and Liberal Leader Jon Gerrard have visited the community in recent months, but the premier had not until the day the paper mill was put up for sale.

“We’re disappointed that it’s taken 99 days from the time of the lockout for the premier to show enough interest to visit the community,” McFadyen said.

Selinger said the province had already offered considerable support for Tembec, including tax credits for plant modernization, a $2.7 million subsidy for not cutting in provincial parks and lowering stumpage fees as market prices fell.

“Since the lockout began we’ve provided a conciliator and a mediator… and provided the resources for the two sides to come to an agreement” but unfortunately they could not, the premier said.

city.desk@freepress.mb.ca