Fraser cuts surprise Canadians

EDMUNDSTON, New Brunswick – The announcement last week that Fraser Papers Inc. was eliminating 331 jobs in Edmundston and Madawaska was as much a surprise in Canada as it was in northern Maine.

Knowing the bad economic condition of the paper industry, provincial and local officials, who weren’t advised in advance, expected cuts but not to the extent announced last Thursday by the company.

The layoffs announced by Fraser President Bert Martin included 141 positions at pulp and paperboard operations at Edmundston. The Madawaska mill is looking at losing 190 jobs, depending on the number of early retirement packages that will be accepted.

Some Canadian officials said this week they think the number of Canadians affected by the layoffs may be greater than 141 because several Canadians work at the Madawaska mill and live in Edmundston. Some think the cuts could affect 150 or more Canadians.

The Edmundston mill manufactures pulp and paperboard and generates energy with a cogeneration plant fueled by wood chips and trash wood. The pulp made at Edmundston is taken to Madawaska, across the St. John River, by pipeline. A second pipeline brings steam energy to the Madawaska mill. The Madawaska mill also gets electrical energy from its sister mill at Edmundston.

In last week’s announcement, Martin also said the two operations would become one. The two mills long have been known as the flagship operation of Fraser Papers Inc.

The Edmundston mill is located in New Brunswick’s Madawaska County, home of the province’s minister of natural resources and energy, Jeannot Volpe.

Volpe and other members of Premier Bernard Lord’s government were caught by surprise by Fraser’s announcement. The provincial officials found out about the cuts 15 minutes before the press conference announcing them was held.

“We were not impressed with the way this was done,” Volpe said Wednesday afternoon. “There were no discussions, no negotiations.

“We were as surprised as everyone,” he continued. “Although we knew something was coming, we were caught off guard by the intensity.”

Volpe said the government knew there was a reorganization planned by Fraser. He said other paper companies in New Brunswick have shown their plans to the government, and sometimes, the minister said, something can be done to soften the blow.

Caught off guard, Volpe said there was little the New Brunswick government could do to help workers.

Like in Madawaska, details of the layoff plans still were up in the air Wednesday. Company officials are meeting with union officials this week to work on details.

Union officials could not be reached Wednesday for comment.

Volpe said it would be days, maybe even a couple of weeks, before officials and workers find out what is going on and what will happen.

“Generally, we were waiting for some kind of cuts, but we did not expect them to be as serious as announced,” Paul Gagnon, Edmundston Chamber of Commerce executive director, said Wednesday. “We thought about maybe 100 to 125 positions in Edmundston and Madawaska.

“The loss of these good salaries will hurt the economy,” he said in French. “We don’t know how many Canadians will lose their jobs, and that may make the impact even worse here.”

Gagnon said the positions carry salaries of between $50,000 and $65,000 Canadian.

Gagnon said he hoped that early retirements would help the situation. Retirees would tend to stay in the area, while young people who lose their jobs probably would leave the area, he said.

He thought the number of early retirements could be high in the next three to five years.

Gagnon said union officials have said they are looking to negotiate concessions, especially regarding issues that could save jobs.

“At this time, it is all speculation,” he said. “It will be some days before we know what will happen.”