A Niagara At Large News Brief from Doug Draper
The future of the Georgia Pacific paper mill in Thorold and more than 100 decent-paying jobs in this region are in jeopardy as the American corporation in charge decides to “idle” the mill.
Niagara, Ontario’s Welland Riding MPP Malcolm Allen Calls For Saving Thorold manufacturing mill
Although Georgia Pacific spokespersons insist that “idling” does not necessarily mean permanent closure, those working there have heard this kind of corporate rhetoric many times before with respect to now gone plants in this region, and they fear for jobs that have paid well enough to support their families.
The Georgia Pacific mill in Thorold South (known in the past as Beaverwood Fibre) is largely a producer of drywall used in the building industry, and there have been some rumbling in the past that the corporation may move all its manufacturing operations down to the southern United States where wages and other costs of doing business are cheaper- something that is relatively easy for any corporation to do given free trade agreements allowing them to hop off to regions where workers can be exploited for the least cost.
Since word spread this Friday, January 17th, Malcolm Allen, the NDP’s federal representative for the Welland Riding that includes Thorold, and the riding’s provincial NDP representative, Cindy Forster, fired off media releases calling on senior levels of government to save this mill.
Niagara At Large is including both of these media releases below.
STATEMENT BY MP MALCOLM ALLEN ON THE IDLING OF GEORGIA PACIFIC PAPER PLANT
Thorold, Ontario, January 17, 2014
Georgia Pacific’s decision to idle its paper plant operations in Thorold, Ontario is another devastating blow to the economy of the Niagara region. The plant produces paper used in the production of gypsum, but has been hurt by the poor economy and decline in the housing market. In December, Statistics Canada reported that Niagara had an unemployment rate of 8.8%, the highest of all other major metropolitan markets across Canada. Now, the difficult decision by Georgia Pacific will add 96 hourly and 16 salaried employees to the unemployment lines.
The people of Niagara are forced to watch in frustration as plants close and jobs vanish, with no help in sight from the federal Conservative government. Georgia Pacific’s decision to idle the plant is a direct result of market conditions and increased competiveness. The Conservative government‘s reliance on corporate tax cut does nothing to address these underlying issues.
My heart goes out to the workers and families affected by this decision. I will continue to call on the government to address the crisis of the rising unemployment in Niagara and ensure that viable and well-paying jobs are protected.
Welland MPP Cindy Forster issues statement about Georgia Pacific plant idling
THOROLD – Welland MPP Cindy Forster issued the following statement today about the announcement by Georgia Pacific that it plans to idle operations at its Thorold plant in March 2014.
“I just received the news about the Georgia Pacific plan to halt operations at its Thorold plant, affecting over 100 workers. My concerns are with the workers and their families. I hope for a quick resolution that provides long term security for the plant and workers. I will be closely monitoring this issue as it develops. Ensuring the continued operation of the facility and preventing future job losses is my top priority.”
(Niagara At Large invites you to share your views on this post. A reminder that we only post comments by individuals who share their first and last name with them.)
Niagara At Large 
This is a sad day for Niagara and the families affected, your story Doug I think is blaming the wrong thing by blaming it solely on the free trade agreement. What we have to do is look to the source of the problem and I firmly think that the problem has to do with white collar crime and the ignorance of your elected officials. Lets face it ,our elections have become more of a popularity contest then to elect the person with the most knowledge and best suited to do whats best for the constituants.
Staff are in control of the region and most municipalities and a good part of this staff are so incompetant that they need a so called cash for life job because they would never make it in the private sector, what ever happened to the days when you were told up front on the day that you were hired that If you could not do the job we would get someone who could.These things cost the region and most municipalities within ,millions upon millions of dollars
of squandered money that most businesses have finally had enough and will go elsewhere.
Look at the pitiful work being done around the the region and most towns and cities,roads are paved sewers are installed only to last one third of the time they used to, the quality of work over the last few years has taken a downward spiral.
Just look at the quality of some employees who actually lie on their applications to get the jobs and once they get the job they have it for life only because council don’t have any experience with how things should be
or have any degree of competence on how things should be done orthe proper way to do it.
What ever happened to the old saying that if you can’t do it we will get someone who can?
These are the real reasons that businesses are leaving this area because of increasingly escalating taxes and rediculess water and sewer rates due to incompetence of councillors and upper management in all levels of government, can we really blame them for wanting to survive?
R. Berry
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If this happens (full closure) that would be yet another blow to our beleaguered manufacturing sector. I feel for those workers and their families.
However, one has to bear in mind that these companies that do relocate do so because these regions in the US are more attractive from a cost perspective. These jurisdictions do not treat their businesses and citizens like an endless money pit from which tax dollars are expected to flow like rivers of gold. The cost of government (employee salaries, wasteful capital projects) is much lower, electricity is much lower.
Now I know its easy for some of us to say well the worker is getting exploited. I know $15-$20 per hour doesn’t sound like much, but when you are paying $100k instead of $300K for a decent home and your property taxes are $1000 a year instead of $3000 (for a modest bungalow) a year, You are not DOUBLE taxed for essentials like fuel for heat and transportation $15-$20 per hour goes a lot farther.
This situation has more to do with rampant public sector spending, government mismanagement of capital projects, ridiculous energy plans and the output of that being excessive taxation to both people and business.
Call an eye an eye. It’s not free trade, its our ability or desire on the part of our government to compete in such an environment.
Considering the recent posts from the Liberals and NDP, I am afraid the exodus will continue if they get re-elected and they introduce more tax and spend legislation. We have seen the Liberals already paying for votes through some recent announcements. Let the bleeding/feeding begin.
Sadly just sayin…….
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In the preamble of this story of more job losses, Mr. Draper observes the fact that “there have been some rumbling in the past that the corporation may move all its manufacturing operations down to the southern United States where wages and OTHER COST OF DOING BUSINESS are cheaper- something that is relatively easy for any corporation to do given free trade agreements allowing them to hop off to regions where workers can be exploited for the least cost”. Mr. Draper mistakenly suggests that without ‘Free Trade’ we could forcibly retain a failing corporation thus saving jobs. He also fails to elucidate why he thinks that “OTHER COST OF DOING BUSINESS are cheaper”.
In Liberal MPP Malcolm Allen’s statement he alleges that “the people of Niagara are forced to watch in frustration as plants close and jobs vanish, with no help in sight from the federal Conservative government. Georgia Pacific’s decision to idle the plant is a direct result of MARKET CONDITIONS AND INCREASED COMPETITIVENESS. The Conservative government‘s reliance on corporate tax cuts does nothing to address these underlying issues.”
Is Liberal MPP Malcolm Allen suggesting that raising taxes would address these underlying issues? And were was Liberal Allen’s statement on his party’s increasing cost such as electricity rates and outrageous financial mismanagement adding to the underlying reasons for lost jobs, for lost commerce and for diminished prosperity.
Where was Liberal Allen when the lonely figure of Regional Councillor Andy Petrowski was fighting back the doubling and tripling of ‘commerce killing and job killing’ development charges. Liberal MPP Allen has every opportunity to join forces with those who are actually doing their best to make government of all stripes accountable to the citizen.
Liberal MPP Allen’s efforts seem to be to simply shift the blame, pass the buck and claim sympathy for our unemployed!
Then of course there is the lament from NDP MPP Cindy Forster that she “just received the news about the Georgia Pacific plan to halt operations at its Thorold plant, affecting over 100 workers. My concerns are with the workers and their families. I hope for a quick resolution that provides long term security for the plant and workers. I will be closely monitoring this issue as it develops. Ensuring the continued operation of the facility and preventing future job losses is my top priority.”
Really NDP MPP Cindy Forster! It’s comforting to learn that you will be watching! And where were you while all of the plant closures were going on? Where was your voice, while our tax and spend government was financially driving out our commerce and killing jobs?
The only time we see the three party leaders is either when they want something or to play party politics.
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I don’t like to see any plants closing, but in this particular case, I can understand it. I grew up in British Columbia. The lumber, pulp and paper mills that were running full-tilt when I was a kid and into my late 20s are mostly gone now. The same is true for many of the mills in the United States.
Why is this happening?
At the risk of over-simplifying things, WE are responsible.
I do not write cheques. I read my newspapers online. All my bills arrive electronically. I pay them online.
In other words – I, and many others, have reduced our paper usage. When you multiply each individual who has reduced their paper usage by the 300 million or so people living in North America, you can see why mills are closing.
If you are reading my comments, you are probably doing so online – unless someone else has printed them out for you because you do not have a computer.
Other commenters have talked about some jurisdictions in the United States where unions are not tolerated and payscales are lower. That is a serious problem – not just for Canada, but for other US states as well.
It doesn’t help that the US government will sign a free trade agreement – and then institute a “buy American” program. Even with free trade, the US is still protectionist and will do all it can to damage the economies of its neighbours.
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Corporate globalization/”Free Trade” + Petro Dollar = loss of manufacturing base throughout Canada. Corporate parties like “Conservative” and Liberal
will not improve the economy in Niagara. The Business Model needs to change. Increasing corporate taxes would be a good start, since Canada’s are far too low.
http://www.pressprogress.ca/en/post/2013-plant-closure-roundup
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Increasing corporate taxes will do NOTHING to improve the economy. The opposite is true.
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Mark as much as I usually agree with you I find I have to hold back to a degree here. Since inception the Corporate model of business has through sleezy and corruptive lawyers managed to position and solidify corporations where they literally have “MORE” rights than the Citizens.
This “POWER” allows money to flowed into most of their coffers like honey on a hot day, actually to a point where they were able to buy up “MOST” of the power base of a so called free society “The Medias” and Governmental Parties….Ralph Nader once when running for President was recorded as saying “It matter NOT which party one votes for they are both, the Republicans and the Democrats, corporate owned party and it is the Corporate line they will adhere to not the common folk”
I really can’t see any difference here in Canada. In fact it is done more openingly and it is from responses like above that their total control is enforced and solidified.. Some say God Bless Canada I feel We the common folk should pray that God “helps” Canada.
Corporate taxes should not be solely based on corporate CEOs millions of dollar remuneration plus perks etc but on what they are willing to return back to Canada in the form of liveable wages supporting our colleges and universities and helping to insure a Canadian health Care system survives….
Corporate taxes should be based on the corporations’ willingness to work for all Canadians and credit given on the extent of their involvement in Job Creation
And by the way Malcolm Allen is a Federal MP, not a Provincial MPP
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You have to be kidding…… why don’t we increase minimum wage to $25 per hour while we are at it……
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I agree with Greg. We should increase the minimum wage to $25 per hour to keep more money in the country.
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