Tolko Industries announced Aug. 22 that it will close its Manitoba kraft paper and sawmill operations in The Pas on Dec. 2, putting 332 people out of work.
“This is not a decision we have entered into lightly,” said Tolko president and CEO Brad Thorlakson in a press release. “Over the 19 years we have been in the community, a great deal of work has been done, both internally and externally, to improve the mill’s competitive position. Unfortunately, despite years of continued effort to improve the cost structure and business results of the operations, the business is not financially sustainable. This is a business decision that is in the best long-term interest of the company and our employees.”
Tolko purchased the paper and sawmill operations in 1997.
“We have valued our time in The Pas and have great respect for the community and our employees who have been with us on every step of this journey,” said Thorlakson. “We understand that this will be a difficult time for them and the community, but we cannot continue to sustain the losses at the operation.”
About 264 Tolko employees in The Pas are represented by Unifor, Canada’s largest private sector union – 234 mill and office workers belong to Unifor Local 1403 and 30 supervisors at the mill belong to Unifor Local 342.
“This is a very sad day for workers and the community that has invested so much into the mill over the years,” said Unifor western director Joie Warnock in a press release. “Unifor is going to fight to make sure that our members’ needs are taken care of during this process and after the closure. “
“Good jobs are the backbone of communities large and small,” said Unifor national representative Paul McKie. “First Nations and Métis communities in Northern Manitoba will be the hardest hit.”
NDP members who represent The Pas at both the federal and provincial levels both said that Manitoba’s government should act to save jobs and avert an economic crisis in The Pas.
““The closure of the mills will be incredibly stressful for families who will have a tough time making ends meet without a regular income,” The Pas NDP MLA Amanda Lathlin. “It will also hurt many other local businesses and undermine the economic future of the entire region.”
“When we were in government, we understood the need for the province to support our resource economy and meet the needs of an evolving industry,” Lathlin said. “If economic conditions have changed, the Pallister government must work with the community to protect good jobs and build an economy that helps families raise their children.”
“The Conservative plan for the north emphasized little more than tourism, showing disregard or a superficial understanding of the real issues facing northerners,” Lathlin said. “The events still unfolding in Churchill demonstrate that Northern Manitobans need stable long-term jobs, reliable transportation and food security – things we always fought for when in government.”
NDP MP Niki Ashton said the federal and provincial governments have not intervened as they had in the past to prevent such an event.
"Where is the federal government?” Ashton said. “Where is the provincial government? When the NDP was in government they worked with the town, Opaskwayak Cree Nation, the union and all stakeholders to find a solution. It was one of the few mills that survived at the time. It's no coincidence that no level of government is stepping up now. We need government to step in and protect northern jobs."
"This coupled with the closure of the Port of Churchill is further devastating to our north,” Ashton said. “We have a federal government that says it cares about job creation and sits by while the north bleeds jobs. We have a provincial government that is betraying the north. It's time to change course."
