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More shutdowns planned for Bowater

News from The Advance

News from The Advance

Nick Moase
Published on April 25, 2012
Published on April 25, 2012
Nick Moase  RSS Feed

A lack of orders is bringing two more shutdowns to the Bowater Mersey Paper mill.

 

Topics :
Bowater , Bowater Mersey , Resolute Forest Products , Liverpool , Nova Scotians , Brooklyn

The first is planned for two weeks, from May 6 to May 21. The second is also for two weeks, going from June 17 to July 2.

Last year the mill was facing permanent closure until the provincial government stepped in. The $50 million package included $25 million for land purchases, plus another $23 million in a forgivable loan.

The union also made major concessions, cutting about 100 jobs and renegotiating the collective agreement with pay cuts and pension concessions.

Liberal leader Stephen McNeil was quick to criticize the NDP government on their bailout plan. He says the latest round of shutdowns casts doubt on using taxpayer's money to bail out the company. These

“Instead of protecting jobs, the community and the millions in tax dollars, the Dexter government basically handed a corporation a blank cheque without any guarantees,” says McNeil. “With two more shutdowns now confirmed, the workers at the mill, the people of the Liverpool area and Nova Scotians are concerned.”

McNeil says the weakening market for newsprint should surprise no one. One of his major concerns about the bailout package originally was the failure by the Dexter government to force a diversification of the mill’s product line.

 “The mill was in trouble and jobs were at risk because the mill wasn’t making a product in demand - this is why Resolute came looking for a handout in the first place,” says McNeil, “Instead of addressing the real problem and moving the mill to a viable and sustainable product, the NDP government simply threw millions in taxpayers money at a flawed business plan.”

Both the Liberal and Progressive Conservative parties have criticized the bailout plan in the past. 

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