Bowater has serious competitive issues

He described the result as creating a sense of “false security.” He added the mill is currently inefficient, although there are a number of positive aspects about the Brooklyn operation that should be mentioned as well.

Recent reports have stated the co-generation plant that provides energy to the plant using Bowater waste wood helped save the plant during the recent 30-day review of all company operations. The company announced plant closures throughout North America and about 2,600 job losses Nov. 29.

Kursman said although the Brooklyn Power Corp. plant helps, Bowater must still purchase much of its electricity from Nova Scotia Power Inc.

“We don’t want people to walk away thinking Mersey has a great power advantage, because it does not. There’s a multitude of factors, not just one thing and the power situation is a very complicated one. We do buy power off the grid and we’re impacted by rate changes, and we’re impacted by some of the highest costs in the Canadian industry. It has a significant impact on the Mersey operation and it’s something we’re very concerned about.”

In addition, he said, “We also have challenges regarding labour productivity at our Nova Scotia operation.”

In terms of cost per tonne, he said, “Our labour productivity in our Mersey operation is much less than in many of our operations. We don’t give specific numbers because this is proprietary information.”

Kursman was relayed information provided by anonymous persons in the community that the cost of contracted workers used at some plants is not included in the formula. Bowater doesn’t often use them.

Kursman described the process as “complicated” and reiterated the mill simply needs to become more efficient.

“We have some serious competitive issues (including energy costs) at the Mersey facility that need to be addressed and that’s where our focus needs to be. They are barriers that need to be addressed.”

He confirmed talks are underway with Communications, Energy and Paperworkers Union of Canada representatives over concessions the company states it needs from employees. He said the talks are at a very early stage and that any reports of an impasse are “sensationalist” and “premature.”

No one from the union could be reached for comment. Attempts were made through telephone and email to contact the Nova Scotia representative as well.

Kursman said he doesn’t want to give the impression that all is doom and gloom in Brooklyn.

“We have an operation supported by our own woodlands that provides quality fibre to the sawmill (in Lunenburg Co.) and paper mill at a competitive cost along with international market access from our own port facilities and convenient access to container ports in Halifax.”

This is essential, he said because of the growing importance of international markets.

At present, the company is “reaching out” to all “stakeholders,” including the various levels of government, community and employees to increase efficiencies to deal with the current economic climate.

However, he said, as was also stated by the company in a previous press release, “There could be a second round of closures.”