Bowater Mersey cuts the price they’ll pay for pulpwood by 10%
January 31st, 2012 | Posted in Woodlands | 7 comments »
Bowater Mersey, in Nova Scotia, has cut the price it will pay for pulpwood cut on private land by 10%.
The price was cut from $36/tonne to $32.50/tonne, effective January 30.
This reduction is believed to be part of Bowater Mersey’s cost reduction initiative that has also seen 110 full and part time jobs cut at the mill.
Andrew Fedora, the executive director of the Federation of Nova Scotia Woodlot Owners, said the pulpwood price cut will affect hundreds of woodlot owners and small contractors in western Nova Scotia, who have already been feeling pressure after the closure of the NewPage Port Hawkesbury mill in Cape Breton.
“If the price was to drop a couple of more dollars a tonne, you could see a lot of people go out of business,” said Fedora. “I think the mills do realize that there is a threshold and they’ve always looked at that — that if you cut it too low, you’re going to completely lose your infrastructure.”
Pierre Choquette, the director of Canadian Public Affairs for Resolute Forest Products (Resolute is the managing co-owner of the mill), said the price change is in “response to supply and demand. It is about market conditions.”
Source:
Bowater cuts pulpwood pay by 10% (CBC)
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7 Responses to Bowater Mersey cuts the price they’ll pay for pulpwood by 10%
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They could not blame the unions for shutting the mill down,so maybe they will have more luck with the wood lot owners.
Your on the right track there LBM….they will nickel and dime everyone there until they dont get a supply of the raw materials needed to operate (unless the NS govt throws money at those guys to keep the mill going) and if that doesn’t work they are working on a plan B as we speak to make the place fail so they can save face with the outside world and media titled “the company was not responsible for the failure”. By the way Resolute….you are not fooling any of us that work at Mersey, and with the world wide web, you are not fooling the general public.
Let the markets decide ! what a load of crap. But what goes around come s around. All those woodlot owners and cutters thought it was a great idea to have the Union workers take a 22% cut and loose half the workforce. So suck it up boys, you ain’t seen nothing yet. Maybe Darryl can give you a little money too.
At one time, this mill had one of the most in demand sheets in the business, was a very profitable mill, and not all that bad a place to work!!But since Bowater threw in with that bunch of thieving corporate b@st@rds from Upper Canada, Merseys had to lower all its P.M quality standards, is forever in the red{says corporate}, and is such a terrible place to work, its just a job goin in there! Now look at what the b@st@rds want to do to the fiber suppliers and private woodlot owners!!!! Unbelievable how much a place can change in a few short years!!
Amen Shogun! ….how come the only ones that have yet to “donate” to the future prosperity of this mill are the corporate CEO’s & the local Company Execs?…. i guess their salaries , bonuses , stocks , options , incentive plans , signing bonuses, golden parachute deals ,etc… are all far more important to the running of this & other mills , than any of the workers , retirees , taxpayers , suppliers , wood suppliers, shareholders etc! or perhaps it really is as it looks…. & the greed is alive and well & ALL of the above non contributing company personnel are indispensable & deserve every cent they receive regardless of how their greed effects everyone else involved in the restructuring of the business! Time to anti up your fair share in the future corporate & local desolute execs! lets see what you offer to the coffers!… my guess…. nothing, but the misery of others! You should all be in jail! ….
Don’t worry…..This foolishness can only go on so long and they will run it all into the ground….I only wish that this company was trying this sort of thing in …say Bolivia or Guatemala….see they have no need for unions, because when they are wronged like this over and over again….well it would have been like last years news when the only golden handshake to these execs would have been slaughter while they sleep for every last one of them..Hunted and done in….something to think about when you think about how well democracy works here….because it doesn’t….revolution isn’t going to be acclomplished by paying dues!
Haven’t the unions and Dexter given enough already to AbiSucks?
It’s time for a new name for this vulture of a company….AbiSucksDry.