Economic woes have played out harshly at Howe Sound Pulp and Paper (HSPP) mill as the company announced Wednesday that 101 employees will lose their livelihoods.
"Unfortunately it is necessary to reduce the work force to help secure the opportunity to be viable during these difficult times," said HSPP president Mac Palmiere.
If there is a silver lining in the announcement, Palmiere said along with the job losses, HSPP and Local 1119 of the Communications, Energy and Paperworks Union have reached an agreement to reduce costs.
"I am very pleased with the collaboration between our union members and management to drive costs out of our business," Palmiere said. "On an annualized basis, approximately $20 million dollars will be removed from Howe Sound's cost structure this year."
But news of that cost restructuring is still hard to swallow with 101 employees losing their jobs.
"It's been a tough week," said Al Strang, manager, environment and external relations for HSPP. "We're all a family here, and when you lose so many members of that family, it's very tough. It's a very difficult decision to make, and we have had to make these cuts in order for us to survive as a business and as a company."
Strang said all the staff who are leaving have been told of the layoffs. He said HSPP and the union are working together to ensure that the staffing transition is handled properly.
"I think people recognize the situation - the world economic situation - and see what other companies are doing, so I don't think anyone was surprised by our announcement. Still, it's not something we wanted to do," Strang said. "We have no further job losses planned at this time." - with files from Ian Jacques
