CASTLEGAR NEWS Your Horoscope For the Week with Michael O’Connor inside the West Kootenay Advertiser
Vol.10 Issue 28 •
Breaking news at castlegarnews.com
Thursday, July 11 • 2013
Politicians do verbal joust- New stopper for Selkirk ing over wood chip issue Saints See Page A3 See Page A14
Rauni Naud
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Zellstoff Celgar announces layoffs MARVIN BEATTY
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Castlegar News Reporter
On Tuesday, July 9 workers at Zellstoff Celgar pulp mill learned approximately 85 employees will be let go over the next five years, with the majority of employees to be affected over the next 12 months. Mercer International Inc. says the workforce reduction comes after conducting a comprehensive assessment, saying in a press release the reduction is intended to improve its competitiveness with other pulp producers. The planned reduction will affect both hourly and salaried employees. “It was extremely disappointing to our executive and our membership to hear the company’s position on the planned job losses that will occur,” said Mike Conci, president of the Pulp, Paper and Woodworkers of Canada, Local 1 on Wednesday. “This affects our union brothers and sisters and management staff employees that work at Celgar. Many people’s lives in our communities have been affected in
“We know the number of positions but it’s difficult to know the employees that are going to go because there is quite a process in the collective agreement around seniority that we need to work though,” – Kevin Anderson, managing director of operations. Marvin Beatty
a very negative way. We will need to focus on those affected and offer any assistance we can during these difficult times.” Kevin Anderson, managing director of operations and technical at Celgar spoke with the Castlegar News the day the job cuts were announced. “It’s an unfortunate reality for some people here,” said Anderson. “Though we are doing our best to minimize the impact to employees. One of the key things is that we’re looking to offer,
as much as possible, voluntary alternatives for senior employees to depart and lessen the impact to some of our junior employees. “There are some unknowns, in particular with those covered under the collective agreement. We know the number of positions but it’s difficult to know the employees that are going to go because there is quite a process in the collective agreement around seniority that we need to work though.” Some senior em-
ployees affected by the restructuring will be offered early retirement incentives. Anderson added the company is doing its best to be “as fair and generous” with those incentives as possible. He said once it’s better known who will take the voluntary options it will be easier to ascertain who will be leaving involuntarily. “It is essential for the long term viability and sustainability of the Celgar mill that it maintains a com-
petitive cost structure compared to other producers in the face of ever increasing costs and other challenges”, said Mercer’s President and Chief Executive Officer, Jimmy Lee in a release. Celgar plans to continue to operate with an annual capacity of approximately 520,000 air-dried metric tons of market northern bleached softwood kraft pulp. It is also expected that approximately 370 employees will remain at the mill when the cuts are complet-
ed at the end of 2017. Since purchasing the mill in 2005, Mercer has allocated approximately $140 million in capital improvements to the Celgar mill. Information provided by Celgar shows about $52 million was pumped into the local economy in wages and benefits in 2012. One of the largest employers in the West Kootenay region, Celgar has been providing high-paying jobs for many people in Castlegar for more than 50 years.
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