Jobs in limbo as G.P. halts production

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(Update)

Another Niagara manufacturing plant is closing down at least temporarily. The Georgia Pacific paper plant in Thorold is stopping production indefinitely.

We have more on how this will affect the plant’s 109 workers and what it means for the Niagara Region.

Georgia Pacific is calling this shut down an “idle”. A spokesperson for the company says that’s because they don’t currently have plans to sell the plant, and machinery will be maintained in case production resumes.

The factory produces paper for drywall, and according to Georgia Pacific, they aren’t making enough profit to sustain the operation. They blame slow recovery in the housing market. Friday morning, workers were told about the closure and sent home for the day leaving the place deserted. Work will resume next week. However, the plant is expected to continue production until the end of the first quarter, and will shut down sometime in March. It’s still not clear how workers will be affected because the closure isn’t permanent yet. Union Rep Gary Lizzotti refused to comment. But employees who spoke with me off-camera said they don’t expect to go back to work.

Five years ago, the Hayes-Dana Axel-Forge Plant around the corner from Georgia Pacific shut its doors, leaving about 170 people without jobs. It has since been replaced by a wind tower plant, but that factory’s slow start has had an impact on local businesses.

Darla Caverhill works nearby: “Everything’s gotten quiet around here. Not a lot of traffic. Not a lot of business. This slows down our business. Lunch time, things like that. A lot of people moving out.”

There’s concern the Georgia Pacific closure will make the area feel even emptier. The whole Niagara Region has taken a hit since the recession. Vertis closed its Stevensville Paper Plant last year, Redpath Sugar shut down in Niagara Falls, and a few years ago, John Deere sent six-hundred jobs to the U.S. after closing its Welland plant.

Marvin Ryder is with the DeGroote School of Business: “These companies have said, we’ve waited for 3 years, we can’t afford to wait any longer, so we’re taking this action today. And unfortunately, at this moment, Niagara has had a bit more of them than others have had in other parts of the province.”

A second Georgia Pacific plant, located in Caledonia is also slated for an idle in March. Back in Thorold, union members plan to meet Tuesday night to discuss plans for the future.