difference

The dry end of Paper Machine #11
Catalyst looks ahead
Powell River: The mill that could and did
by Isabelle Southcott
For the past 10 years, a dark cloud loomed
over the Catalyst Powell River mill. Layoffs,
tax cuts, a reduced work week, early retirements,
and everything else associated with
weak markets, a recession and downsizing
has plagued the mill that was once the largest
newsprint producer west of Ontario.
But now, for the first time in over a decade,
that dark cloud has dissipated and the future
looks brighter, says Stew Gibson, former Powell
River mill manager.
The mill is recovering and management is
cautiously optimistic, says Gibson. He’s sitting
in the boardroom of the Powell River mill with
Mike Verdiel, Communications, Energy and
Paperworkers Union Local 76 president. The
two had to work closely together to keep the
mill viable. Powell River would certainly have
followed the demise of other mills without the
cooperation of Locals 76 and 1 of the Communications,
Energy and Paperworkers Union.
Both the company and the unions also say
the cooperation of the City of Powell River has
made the mill’s survival possible.
Catalyst Paper, a leading mechanical papers
producer in North America, owns a mill
in Arizona and three in BC. The Crofton and
Port Alberni mills continue to operate, but the
mill in Campbell River closed permanently in
2010. So did the recycling operation in Coquitlam.
Both were victims of the worst economic
downturn in the industry, and a difficult
labor and tax situation.
The fact that the Powell River mill survived
the worst economic downturn in the industry
can be summed up in two words: cooperation
and diversification. First there was cooperation
between mill management, the unions, and
staff. Then the taxpayers of Powell River and
the City made adjustments to ensure the viability
of the mill. Without this willingness to
change and move forward, the mill could not
have survived.
AGREEMENTS REACHED
At the same time, the mill was examined
for areas to reduce costs. Although Local 76’s
labour contract didn’t expire until April 2003,
a new agreement was reached early at the request
of the company. “It gave people some
breathing room and brought about relative
labour peace,” says Verdiel. In an attempt to
cut costs and save jobs, members of Local 76
agreed to a reduced workweek of 37 1 ⁄3 hours.
Communications improved at the mill.
“Grievances dropped from 110 a year to three
a year,” says Verdiel. For the first time ever,
the heads of the mill’s two unions were invited
to be part of meetings and discussions with
the municipality.
“Labour was willing to make changes to ensure
the viability of the mill,” says Gibson.
Some took early retirement, others were laid
off. The collective agreement was modified
and efficiencies were gained on the paper machines,
said Gary Jackson, Local 1’s second
vice-president.
As Jackson points out,“It was survival mode
and everybody stepped up. We knew we were
going through some tough times and that we
had to work with what we had.”
Because of the efforts made by the City and
mill employees, Powell River’s was the only
mill in the Catalyst group that did not take
downtime in 2009.
As a result, the Powell River mill produced
480,000 tonnes of paper and, directly and indirectly,
supported more than 1,100 jobs.
RouGH DECADE
The first 10 years of 2000 haven’t been easy
and both Gibson and Verdiel are glad they are
behind them.
In October 2001, Norske purchased the
Powell River mill from Pacifica Papers. In late
November of the same year Norske closed the
kraft mill as it was not economically viable.
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Powell River Living • april 2011 • 15