Tuesday, October 1, 2013

Resolute Looks at Options for Baie Comeau

Resolute Forest Products seeks to cut 90 workers or a quarter of the 360 workforce at its Baie Comeau, QC, newsprint mill in a move to cut costs in the face of declining exports. The company told employees they have a week to accept the jobs cuts or lengthen the work day to 12 hours from eight, or face closing one of the mill's three machines and eliminate 150 jobs, the Canadian Press reported.
Resolute wants to maintain the mill's 462,000 tonnes/yr of capacity from the three machines, an official told CP. Shutting one machine would mean trimming more than 40% of the workforce.
The union, Unifor, told CP it would meet with the company Tuesday to get more details of the proposals before consulting with members.
Resolute also is concerned about woodfiber costs that have increased by 10-20% after the Quebec government reduced wood access by more than 30% this year.