Unifor says "a lack of capital investment during good economic times" by Quebec-based packaging company Cascades, Inc. is the reason the company is shutting down some of its operations in Ontario.
Cascades announced Tuesday that its currently idled Trenton, Ont., mill will not restart operations, while the Belleville, Ont., converting plant will be permanently closed by May 31. Another converting plant in Newtown, Conn., will also be closing.
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"This is sadly an example of a company failing to invest when it should and now our members and their families are paying the price," said Unifor National president Lana Payne in a news release. "I want to be clear we expect the company to come through with severance terms that reflect the workers' many years of dedicated service."
Unifor Local 1470 represents 116 members at the Trenton facility. The union says it was midway through bargaining its next collective agreement with the employer at the time of the announcement.
"This is obviously a very hard day for the members, but this is also a sad day for the community of Trenton as it loses one of the largest employers in town," said president of Local 1470 Jamie Mallory. "The union will be here every step of the way to help members with this transition and to advocate for them in upcoming meetings discussing closure terms."
Cascades blamed "the combination of the current market environment, higher operating costs, aging technology and the need for significant capital investment" for its decision to shut down its Trenton, Belleville and Newtown facilities.
"The Company will record $61 million of impairment and environmental obligation charges associated with these closures in its fourth quarter 2023 financial results and will incur approximately $35 million of additional restructuring charges in the coming years," a news release said.
The company said 310 employees are affected.
"I would like to assure our customers that we will work with them to ensure a smooth transition," Cascades president and chief operating officer Charles Malo said. "I would also like to sincerely thank the Cascaders affected by this announcement. We will stand by them through this process, and we will assist in the relocation of those employees wishing to continue working for Cascades at one of our other locations."
