ESPANOLA—While the first round of layoffs of employees from the Domtar Pulp and Paper Mill in Espanola came down as of November 30 on the pulp side, town officials, union representatives and current employees are indicating that it is not all doom and gloom, as many employees have already found other employment, and the majority are not moving out of the community.
“Yes, as of Thursday (November 30) the pulp side (of the mill) will be shut down and layoffs will begin,” said Espanola Mayor Douglas Gervais. “The paper mill machines will be running until mid-January at least. Those dates are just estimates depending on whether the company continues to get orders.”
Mayor Gervais said he and the members of council feel empathy for the Domtar employees (and their families) who are losing their jobs but feels it will not mean a huge exodus from the town. “Yes, it definitely has affects, and it is not good news in any way.”
However, “Most of the (former employees) have jobs already,” said Mayor Gervais. “And for those that live here it appears the majority are staying and commuting to other jobs. There are some employees who are looking for jobs and trying to sell their homes, but it is definitely not the majority.”
“Obviously, the closure is devastating news to the community,” said Steve Boon, Northern Area director for Unifor. He said the union set up the labour adjustment centre in town to help employees find jobs. The union, “has also made sure good early retirement packages are in place for those close to retirement.”
Mr. Boon said the pulp mill ceased production in October and the work has focused on preparing for the idling phase of the pulp mill facility. This work has included erecting fencing, flushing lines and wrapping exhaust vents to prepare for the cold weather.
Layoffs will begin around mid-January for employees in the paper division and this will leave about two dozen employees in total at Domtar. “There will be a total of a little under 50 employees in place until January, and when the paper (division) layoffs take place, it will leave a couple of dozen employees until May. Then a skeleton crew of about 14 will remain in the long term to maintain the plant.”
Mr. Boon explained some of the employees are working in other areas like Nairn Centre and Sudbury and commuting back and forth to work, while others are sharing apartments in another community where they work for about seven days and then get seven days off (and commute back to Espanola).
“Fortunately, there appears to be a lot of job opportunities,” said Mr. Boon. “And this is a good mill; it is an asset and has a good workforce, so if the company finds a resolution and reopens or sells to another company some of these employees may have the opportunity to come back.”
Leanne St. Pierre, who is originally from Little Current and now lives in Espanola and works in the paper mill told The Expositor she worked on November 30 when employees in the pulp side were working their last day at Domtar before being laid off. “I saw three people in total. When everyone is on hand there are between 20-40 employees on site. It was a very quiet building.”
Ms. St. Pierre said, “a lot of the employees have found jobs already. It has been amazing in that sense. I know my son-in-law found a job in another mill and starts (this Wednesday). And there are some that have found work in Sudbury and other areas that are either commuting back and forth or sharing apartments.”
“No, I haven’t heard anyone say they had to move to another community for a new job,” said Ms. St. Pierre. “I find it amazing how many people have found work in other places in the area.” In her case, she will be retiring soon, having worked for Domtar 32 years. “I will be retiring on a full pension and benefits.”
“We will work with the government and the company,” said Mr. Boon. “Domtar has to make a decision at some point, one option being to sell the business. The hope is that there will be a potential buyer of the business,” he said noting that the cost of demolishing the building would be in the millions of dollars. “A sale would be more lucrative for everyone, but this process would take time as well.”
“There have been different companies in looking at the mill,” said Mayor Gervais. “There are companies looking at it (as has been the case for the past couple of years), but whether they are going to buy the business is another thing. We all hope so.”
“It is never a good thing when a major business in a small town like Espanola ceases operation,” said Mayor Gervais. “The town has been working hard to establish itself as a tourist community, senior community and try to draw both seniors and young people to town and help to keep the businesses that are here viable.”
As for the effects to the town coffers with Domtar idling, Mayor Gervais said there is no immediate financial impact as the mill is being kept intact for a potential reopening.
