G-P seeks to close 3 Maine wood camps

MILLINOCKET — Georgia Pacific Corp. has started negotiations with representatives of two United Paperworkers International Union locals to discontinue the Millinocket operations’ wood camps.

Gordan Manuel, G-P’s manager of public affairs, said the company and representatives of UPIU Locals 1977 and 591 were negotiating the discontinuance of the wood camps.

He said the union discussions began after an evaluation by the company on the continued operation of camps.

“G-P has historically operated its wood harvesting through contracted services. G-P will have future ongoing meetings with the respective bargaining units,” he said.

The wood camps and the related services have about 240 employees represented by the bargaining units. The camps include: Lobster Camp, St. John Camp, and Rocky Brook Camp.

G-P has the only company-operated wood camps in Maine. About one year ago, the company closed its Telos Camp, which is being operated by a contractor.

Although Manuel would not offer any other details, sources said the wood camp operations and associated services, such as road maintenance crews and shops, would continue operations through the winter, but could be discontinued in June. Sources said G-P plans to contract for those services.

Regarding speculation that the company plans layoffs as the result of budget constraints, Manuel said he knew of no layoffs.

“We are maintaining, like every company, efforts to run the operations at the lowest cost possible, particularly in light of a declining economy,” he said.

Manuel said the Aug. 2 invasion of Kuwait would result in the company having to pay an additional $3 million in fuel costs by the end of this year.

“That is $3 million off our bottom line. We are looking at on average about $7 more per barrel and over that period (to year’s end) we will use about 500,000 barrels. It takes away from our profitability and makes it very tough. In a very tough economy, that is money that is difficult to lose,” he said.