The Western Star was unable to confirm anything with the paper company, its parent company Kruger in Montreal, the local unions or the provincial government, but sources have told the newspaper there will be a significant announcement in the coming week.
One source has said that there will be as many as 90 jobs lost. The source said the cuts will be across the board, affecting management positions as well as unionized jobs in the mill and in the woodlands operations.
The source also said the unions are expected to be officially notified of the cutbacks on Tuesday. Another source said the provincial government has been apprised of what the company has planned.
Unionized workers in the mill are already waiting to be repaid a 10 per cent deferral in wages they agreed to in 2010. Essentially a loan to the company to help ease the impact of the ongoing tough economic times the newsprint industry has been experiencing, the agreement was that the deferred wages would be paid back when the paper mill returned to profitability.
The paper mill is currently a two-machine operation employing about 500 people. It had four machines making newsprint less than five years ago, but shut down one machine indefinitely in November 2007 and another in the spring of 2009.
Those moves were followed by the cutting of 130 jobs in June 2009 and a two-week shutdown of the entire operation in October 2009.