JAY, Maine - The Verso Corporation announced Thursday that it plans to make major reductions in its coated paper and pulp production by shutting down two machines at its Androscoggin mill in Jay and eliminating 300 jobs. The company also announced that it is indefinitely idling its mill in Wickliffe, Kentucky.
Members of Maine's congressional delegation released a statement calling the announcement a "devastating blow to the mill's hardworking employees and their families." And legislative leaders are also weighing in.
Around the towns of Livermore, Livermore Falls and Jay, just about everyone knows someone who works at the mill. And when workers were called into an unscheduled company-wide meeting Thursday morning, it didn't take long for the news about the 300 layoffs to spread.
Jim Wilkins of Livermore Falls heard about them from his dentist. Wilkins' wife is an analyst at the mill. By lunchtime he still hadn't spoken to her but thinks her job is safe. He says he's trying not to think the worst. "I'm hoping we can maybe get that number by attrition, maybe - early retirements and such."
But in a statement on its website, Verso says it anticipates that the reductions at the Androscoggin mill will result in the permanent elimination of about 300 jobs. Laura Fitzgerald, whose husband has worked at the mill in Jay for 26 years, says she got a text from him explaining that the layoffs will take effect by the end of October.
"You know, a lot of families, they're going to be totally devastated and displaced," Fitzgerald says. "No one really knows what's going on. Even my husband's area, it's kind of up in the air. No one knows yet."
Shiloh LaFrenier, town manager of Jay, is on vacation this week, and at the town office clerks passed out her written statement. "I am at a loss for words," she said. "As a town, we will get through this together."
Verso says the decision to reduce its capacity was driven by several factors: Demand for North American coated paper is down nearly 5 percent for the first half of this year, and that follows declines in the two previous years, according to the Pulp and Paper Products Council. Verso spokeswoman Kathi Rowzi says a strengthening of the U.S. dollar has also resulted in a trade imbalance, with decreased U.S. exports and more imports.
"The net change in imports from Canada, Europe and Asia over just the first half of this year were up 14 percent," Rowzi says, "so imports are definitely playing a role in this." In addition, Verso says high operating costs in Maine - especially high energy costs and local property taxes - were contributing factors.
Legislative leaders from both parties were quick to respond to the issue of energy costs. Assistant House Majority Leader Sara Gideon said the layoffs at Verso underscore the importance of diversifying fuel sources for the future.
"The states that embrace abundant, cheap and renewable fuel sources will be the states that ultimately lead in sustainable low energy costs," Gideon said in a statement.
House Republican Leader Ken Fredette said it will be necessary to work together in state government and regionally to lower energy costs to prevent future job loss. And he's concerned about the ripple effect of the latest layoffs on other businesses.
So is Carrie Castonguay. "We actually are a subcontractor within the mill. We have a company that we operate out of our home."
Castonguay and her husband operate a cleaning service that does commercial janitorial work for the mill. She's also the administrative assistant and deputy treasurer for the town of Livermore, which saw the permanent closure of the Wassau mill in 2009, when more than 200 workers lost their jobs.
Castonguay remembers how difficult that was and she wants workers and their families to know her town stands ready to help. "You know, everybody's certainly willing to dig deep and do, you know, what we can to help, any way we can."
In the meantime, Maine's congressional delegation is urging Verso to file a petition for Trade Adjustment Assistance, which could provide employment training, income support, and job search assistance to affected workers.
