The Communications, Energy and Paperworkers Union of Canada represents more than 300 workers that are currently employed at St. Marys Paper in Sault Ste. Marie, Ontario. The union said they have been recently been notified that the company will be scaling back current staffing levels in the very near future.

Management announced its first significant layoffs -- since acquiring the then bankrupt mill from St. Marys Paper Ltd. two years ago -- about seven weeks ago, in early May.

At the time, management described the layoffs of 60 employees, as well as the shutting down of two of the mill's three paper machines, as a short-term measure, lasting for maybe a month, to bring inventory in line with market conditions.

St. Marys has idled No. 3 and No. 4 paper machines and is relying on workhorse No. 5, capable of handling at least 144,000 tonnes of the mill's 240,000- tonne capacity, to ride out the crisis.

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More layoffs imminent at St. Marys Paper-- union (The Sault Star)