Meeting with Resolute deemed positive

Duane Hicks

Kenora-Rainy River MPP Sarah Campbell and Thunder Bay-Rainy River MP John Rafferty both are “cautiously optimistic” about the future of the Resolute Forest Products mill here after meeting with company president Richard Garneau last Thursday night in Toronto.
The pair met with Garneau for more than two hours, during which he and his advisor, John Valley, addressed and quelled a number of concerns that have been circulating locally around the company’s intentions and the future of its operations in Fort Frances, noted Campbell.
“The meeting went quite well,” she remarked in an interview Friday.
“Both John and I were provided with a lengthy opportunity to sit down with the president and his special advisor, where they answered our many questions around the future of the Fort Frances mill, as well as other projects they have planned or are investigating in Northwest Ontario,” she said.
“Both the president, Richard Garneau, and his advisor, John Valley, remained firm with what they have been saying since the indefinite idling of [#5 paper machine]: that the intent isn’t to buy time before announcing the permanent shutdown of [#5 paper machine], that they remain committed to protecting the mill’s assets, [are] actively pursuing alternate product development and engineering studies, and that we should remain hopeful that they will be able to restart.”
“He reiterated that keeping the heat and lights on, especially with winter coming, is important,” echoed Rafferty.
“Their research people are looking to re-purpose the kraft portion,” he added, though conceding Garneau only could go into so much detail for “competitive reasons.”
“It’s by no means a done deal but they’re actively exploring that, which is one of the reasons why they’re keeping the heat and the lights on,” Rafferty explained.
“I guess that’s what makes me feel cautiously optimistic—that the new status quo, as it is, will be maintained and hopefully some other things [will develop in the future].”
Rafferty also said he asked Garneau if Boise had made an offer to buy the mill here, as has been rumoured locally. Garneau replied that was the first he’d heard of it and there was no truth to it.
Rafferty added Garneau made it clear the company is investing in its operations in Northwestern Ontario, and is hopeful about the near future.
“[Garneau] has an overwhelming sense of how important it is that people in communities continue to be employed, and he’s got a sense of community, which is nice,” he remarked.
Resolute still intends to begin construction on the planer and sawmill—a $32-million project—in Ignace next summer and fall, not to mention a $10-million project at the Thunder Bay sawmill, as well as see a new turbine at its Thunder Bay mill up and running early next year.
“[Garneau] has great hopes for those three and he has great hopes for Fort Frances, too,” Rafferty stressed.
“He explained they now have in Ontario and Quebec four mills that are down to one [paper] machine and he explained the economics behind it.
“The other three where that has already happened, that one paper machine is making money and he fully expects the Fort Frances mill, with one machine running, to make money,” Rafferty added.
Campbell said Garneau and Valley also spent considerable time addressing a number of questions and concerns around pensions.
“Mr. Garneau has indicated that he intends to have someone at Resolute, who is well-versed in the [pension] area, come to Fort Frances to speak to pensioners and employees to answer their questions, and he gave both John and I contact information so that we can follow up with him directly with more questions that we may have,” she noted.
“[Garneau] renewed his commitment to ensure that they’d keep working towards fully funding pension plans and that people continue to get their pensions,” echoed Rafferty.
“He’s committed to that, and over the last year they have put money into the pension fund,” he added.
“He believes that’s important for workers and communities.”
Rafferty said he’s offered to speak to the local group, Seniors, Retirees Against Pension & Elder Abuse (SRAEA), in early January.
“Overall, it was an informative and reassuring meeting, and both John and I are committed to helping the company in any way that we can,” said Campbell.
“It was certainly worthwhile, and I really appreciate the time [Garneau] gave us,” agreed Rafferty.
“The feeling I got was he cares quite deeply about workers and communities,” the MP added.
“If he can keep as many people as possible working, he will do that.”
Rafferty added Garneau is open to further communication with him and Campbell down the road.
Resolute Forest Products announced Nov. 21 it would idle indefinitely its kraft mill and #5 paper machine here as of the end of last month, and lay off 239 employees.
Paper machine #7 will continue to operate, with about 200 employees staying on at the mill.