Cascades is shutting its containerboard-packaging plants in Trenton and Belleville.
The closures will impact nearly 230 local workers. Of those 230, layoffs are impacting about 148 employees out of the Trenton plant and 80 in Belleville, confirmed Hugo D’Amours, vice-president of communications, public affairs and sustainability.
“As you know, with the interest rate that went up and the economy slowing down, so is consumption and it has a direct impact on the demands of products,” said D’Amours.
“We manufacture packaging, so it has a direct impact on what we manufacture – so it’s a combination, I would say, of the current market environment, but also higher operating costs and aging technology in the case of both these facilities,” said D’Amours, in response to inquiries around reasons for closures.
“Unfortunately, the combination of all that has brought us to (make this) decision,” said D’Amours, who also vowed Cascades will help impacted employees as much as possible.
Workers were informed Tuesday morning in person about layoffs, noted D’Amours.
“These are people – they’re good employees, good people – so we wanted them to hear it from us, and we wanted to be able to answer all their questions.”
The official closure date is April 12, said D’Amours.
Belleville will continue operating until its closure. At the Trenton facility, production halted earlier – the paper machine wasn’t producing since Jan. 23, said D’Amours. However, employees were still working onsite, noted D’Amours, who also said employees will be paid into April and some beyond in line with contracts.
In a statement, Cascades announced an operational realignment and optimization of its containerboard-packaging platform. As part of this, the Trenton corrugated medium mill will not restart operations, while Belleville and a Newtown, Connecticut converting plant will be “permanently closed in a progressive manner by May 31, 2024,” said the company.
“Following recent strategic investments in the Bear Island mill and its converting network, production from these facilities will be moved to other units with available capacity and more modern equipment,” reads the statement.
Meanwhile, Unifor is blaming a lack of capital investment during good economic times on the decision by Cascades Containerboard to close its plant in Trenton, saying its throwing over 100 Unifor members out of work.
“This is sadly an example of a company failing to invest when it should, and now our members and their families are paying the price,” said Unifor National President Lana Payne. “I want to be clear (that) we expect the company to come through with severance terms that reflect the workers’ many years of dedicated service.”
Unifor Local 1470 represents 116 members at the facility. In a recent release, the union said it was midway through bargaining their next collective agreement with the employer at the time of the announcement.
The company noted the annual production capacity of the equipment to be shutdown is 175,000 short tons of corrugated medium and 500 million square feet of corrugated packaging.
“I would like to assure our customers that we will work with them to ensure a smooth transition,” said Charles Malo, president and chief operating officer of Cascades Containerboard Packaging, in the statement. “I would also like to sincerely thank the ‘Cascaders’ affected by this announcement.
“We will stand by them through this process, and we will assist in the relocation of those employees wishing to continue working for Cascades at one of our other locations.”
Over the coming weeks, Cascades said it will work closely with the total 310 impacted employees to mitigate, where possible, impacts of its announcement.
“Employees who cannot or do not wish to relocate to other plants will receive support in their search for other employment,” vowed the company.
The company will do all in its power to ensure the smoothest transition possible and help with opportunities within Cascades or outside the company, said D’Amours.
D’Amours noted the Trenton mill building has stood since 1927 – Cascades acquired it in 1997. The company acquired the Belleville property in 2005.
“We’re obviously very saddened to make this decision, but unfortunately, the aging equipment and market conditions have been very difficult for packaging recently …” said D’Amours.
The union said it had scheduled meetings to discuss the closure.
“This is obviously a very hard day for the members, but this is also a sad day for the community of Trenton as it loses one of the largest employers in town,” said President of Local 1470 Jamie Mallory. “The union will be here every step of the way to help members with this transition and to advocate for them in upcoming meetings discussing closure terms.”
(Written by: Sarah Hyatt)
