Hyer visits west coast
MPs Tour Canadian Forest Industry Success Story
Employee-owned Harmac mill to increase production despite decimated sector, MPs find
NANAIMO – Nestled on Canada’s west coast is a rare pulp & paper success story that could serve as a model to revive other struggling mills across Canada, say MPs Jean Crowder and Bruce Hyer.
“The story of Harmac Pacific is an real inspiration.” said Thunder Bay–Superior North MP Hyer, on a tour of the mill with local Nanaimo–Cowichan MP Crowder. “Two years ago, it was just another shut-down mill being sized up for value as scrap metal. But the employees refused to lay down and just accept that the market – and boardroom decisions – would cost them their jobs. They joined together to buy a stake in the mill, and brought in other local investors too. Today, this mill is owned 100% locally and not only profitable, but looking to expand production.” Like many others in the country, Hyer’s Northwest Ontario riding has seen many mills shut down in the forest sector downturn in recent years.
“2008 was a dark year for the forest industry in BC, but the story of Harmac’s resurrection became a bright light in Nanaimo-Cowichan.” said Crowder. “The refusal of the workers of Local 8 of the Pulp, Paper & Woodworkers of Canada to accept the mill’s closure was a key moment.”
In 2008, the 60 year old Nanaimo-area mill was considered the weakest of troubled American forest sector company Pope & Talbot’s assets, and written off by analysts. The mill was shut down and about to be scrapped. But in an historic bankruptcy court ruling later that year, sale of the mill was approved to an employee-led coalition of local investors.
Each of the mill’s 230 employees agreed to invest $25,000 over 3 years for an ownership stake. The mill soon restated with a single line of Northern Bleached Softwood Kraft production at 230,000 tonnes annually, and a motivated workforce signed an 11-year labour agreement and shaved $100 off the cost of each tonne produced. A second line has now increased production to 340,000 tonnes per year, and planned investments will increase output yet again.
“Thanks to the owner-workers, staff and new management pulling together, this mill is stronger now than ever.” remarked Hyer. “But many other mills across the country remain closed, or are struggling to get back on their feet. The success story here may inspire others with ideas to see their mills start up again, more sustainably than before.”
