US economic downturn sparks layoffs at Fundy Gypsum

It won’t be Happy Holidays for the staff of Fundy Gypsum as the company heads into the New Year with a massive layoff. By Dec. 31, approximately one-third of workers there will be without a job; some have already been given their walking papers.

Company spokesperson Mike Bishop pointed out that a severe downturn in the US market has forced the closure of several American plants and greatly reduced the requirements for gypsum south of the boarder.

“We’re a reciprocal business and are completely tied to that situation, and right now there is no market for gypsum,” Bishop said. He reported that 46 staff in total would be laid off before the New Year, with no definite return date. “As you would expect, it’s a bad situation. All we can do is hope the situation there turns around soon.”

Reid Spencer has worked at the Fundy Gypsum Company’s Miller’s Creek location for 23 years. He said the last time he was laid off was 17 years ago, and only for a matter of months. “This is definitely some bad stuff.” The trickle-down effect from the US company, he said, has finally reached home. “Many people don’t realize that our main company is based out of the Chicago and what is happening there has filtered right through to us.”

Starting all over

Although likely eligible for Employment Insurance, Spencer noted that he, like many of his co-workers, has few transferable skills. “I came to FGC just after I turned 20, and I’ve been there all my working life because it was a good job, I had no reason to leave.”

He added, “if a fellow like me had training in anything else, it wouldn’t be so bad, but this is just like being 19 and getting out of school looking for a job for the first time.”

Although staff will retain their medical benefits for the next six months, unless they return to work within one year they will have to start at the bottom again.

Spencer said he would loose all the seniority he has built up over the past two decades. “I'd be just like any other new kid on the block, back at entry level.”

The father of two has considered relocating to find employment. “I’m seriously thinking of heading out west in the new year. I can’t wait around for a phone call from Fundy Gypsum.”

Economy to blame

Hants West MLA Chuck Porter has spoken directly with Bishop regarding the situation and was advised that the Canadian subsidiary has zero control over the US market. “I’ve been told that the downturn in the US has forced the closure of their gypsum-board making plants.”

He said, “it is one of those situations where we do rely on the US economy to support businesses here.”

Bishop had pointed out that FGC expects shipping to be down for 2009, but that does not mean there won’t an increase demand projected for 2010. And should that happen the company would need to restaff in preparation.

Porter notes his main concern, however, continues to be the well being of those employees and their families. “I will do whatever I can to support them through this.” Including assistance with filing of Employment benefits applications, implementing the provincial pharmacare plan and possible re-training opportunities.

“We need to stay positive and hope for the best case scenario.”

West Hants Municipal Warden Richard Dauphinee understands that close to a dozen of those losing their jobs could receive an early retirement package, however, he noted that is little consolation for workers such as Spencer. “It’s tragic. Staff there make excellent wages and they have fashioned their lives based on those salaries.” He pointed out that employment benefits would be relatively low by comparison.

Not the company’s fault

At the same time, Dauphinee noted that, although the layoffs will be a tremendous loss to the community, there is no blame to be laid on the part of the company. “This is not the company’s fault. They have always been a top employer and I know they feel as bad about this as the employees.”

The warden said, “I’ve never known anyone to quit Fundy Gypsum. They are a good employer, but they’ve have to plan this decision based on what is happening in the US.”

He noted that the economic spin-off from FGC is typically in the millions of dollars each year, but now with so many staff unemployed, times will be tough all across the board. “When people don't have an income, it affects the economy of the entire community.”

Hantsport Mayor Wayne Folker said he is unaware of any local staff affected by the layoff, however, he notes any decrease in production at FGC will result in less work for railway and shipping staff, as well.

“I'’ very concerned for those staff,” the mayor said. “It must be devastating.”

Folker said he blames a sudden slump in the US housing market for the decrease in demand for Canadian gypsum. He added, “Fundy Gypsum has always been a good corporate citizen and the layoffs will have a direct impact on the communities of Hantsport and West Hants.”

Fact box-(courtesy of the Hants RDA)

-With a loading time of less than three hours for 40,000 tons of cargo, the Fundy Gypsum Company’s Hantsport facility is one of the fastest ship-loading operations in the world.

-Fundy Gypsum Company started in Windsor Nova Scotia in 1924.

-Fundy Gypsum is a year-round operation, with approximately 150 employees in three locations; Miller's Creek, Wentworth and Hantsport.

-All rock produced at Wentworth and Miller's Creeks is transported by rail to Hantsport, where it is stockpiled in a massive storage shed. The unique aspect of the Hantsport operation is that cargo ships dock on the rising tide and sail at high tide.

-Fundy Gyspum Company has applied to the provincial government for an expansion of the Miller's Creek Quarry. An environmental assessment for that application is ongoing.