AbitibiBowater find Thunder Bay mill unsustainable
Aug 10, 2009. Thunder Bay has been identified as a high-cost operation that cannot be sustained even as a one-paper machine operation.
Aug 10, 2009. /Lesprom Network/. Dougall Media in Thunder Bay obtained a confidential letter of intent from AbitibiBowater to its 5 unions representing the workers of the Thunder Bay mill, ForestTalk reported.
In the letter, it states: "As a further result of this analysis and evaluation, Thunder Bay has been identified as a high-cost operation that cannot be sustained even as a one-paper machine and/or one-kraft machine operation with its current organizational restrictions and cost structure. Consequently, as part of the company’s restructuring plan, the entire Thunder Bay facility has been identified as one location to be idled indefinitely unless a suitable, viable alternative can be found."
The letter of intent goes on to say the parent company’s objectives are to design the facility to operate safely and efficiently with one paper machine and one kraft machine and to reduce all in-labour costs to $80 per tonne with an approximate hourly staffing model of 380 employees.
The proposal also calls for extensive changes to existing collective agreements, including a temporary suspension of seniority, bumping and bidding rights and revisions to work-schedule agreements. Changes to pension provisions are also part of the package.