Corporate Responsibility , Unheard of Here

Posted on behalf of Chris Allison President Cep Local 689 Miramichi ,New Brunswick

It was only a few years back when UPM decided to cast their shadow of gloom on our town. Most felt comfortable with the fact one of the world’s largest forest enterprises took over our mills. Everyone was happy with the future of Miramichi. We soon found, this was all to change.
I started in the mill in 1986 . We had our share of ups and downs in the industry as most industrys do. We survived through it though and always continued to operate. Back then we flew under the Repap flag. A wild spending company, that never hesitated to invest. But some bad investments caught up to the owner and soon hands were changed.
Then UPM arrived in 2001. Within three months over 90 jobs were slashed in the mill. These positions both staff and hourly. We started thinking differently of our new owners. Their new approach was uneasy to accept ,but we had to move on.
In September 2004 with one quick announcement, the company closed our Kraft Mill. The devastation would rock our community, 400 jobs in one swing. The reasons for the closure, we were told was “ market conditions” and the “ mill was to old”. Many, as I do, believe the kraft mill had many years left. But now it is gone. In April of last year, the company announced an investment of 325 million in its Kymi pulp mill their homeland of Finland. The pieces of the puzzle were starting to fit.
A long 9 month strike in 2005 was then added to our resume. The company reduced capacity in the markets during the strike and increased prices. Profits multiplied across Europe, and UPM boasted about it. In the meantime us small town Canadians sat idle wondering where we stood in this monopoly.
In December 2005 after the strike was over and all hoped life would return to normal UPM announced a 3 month closure for the Miramichi mills. From February till May we would sit idle again, bet a request was bestowed upon us. The company wanted a wage rollback of 5.5% , a two year wage freeze , elimination of 12 jobs and substantial production increases. In my mind I knew they wanted us to fail. The membership accepted with reluctance and production records were broken month after month after month.
If this was not enough the dagger was then pierced in the hearts of all Miramichiers. The effects of globalization and corporate greed cast its head as UPM announced a 9 to 12 month closure for Miramichi. With it 600 more jobs to be lost. This slated to begin in August of this year. Odds of start up given to us were, 20% and no startup without investments. After all the employees had done, the company could not keep its end of the bargain.
Investments here are nill compared to those overseas. The government has made offers ,but they have been shunned.
The prices of coated magazine papers will be hoisted shortly. UPM will be requesting this from their customers. An overcapacity in their homeland of Finland has crippled the lives here in Miramichi. An overcapacity they wish not to deal with.
Many will ask why the letter? Well, hopefully the Corporate Responsibility of the magazine producers in North America will kick in. We were once a major customer to Time Magazine, Avon, Cosmopolitan and many others. Those customers were filtered to other mills. We are slowly being erased from the UPM map. Impairment charges taken for the Miramichi mills have us worth nothing on UPM books. Please support our struggle here in Miramichi , New Brunswick. Thank You

Chris Allison
President Cep Local 689
Miramichi ,New Brunswick Canada
Ph 506-6223327