Job cuts to hurt River Valley economy

New Page, a paper mill and the lifeblood of the economy in the River Valley area, will shut down the #11 paper machine at the Rumford mill, at the expense of about 60 jobs.

The company has made cuts affecting 660 jobs across the country following a corporate merger, the Associated Press reported today.

Both lawmakers representing Rumford work for the mill. Sen. Bruce Bryant, D-Dixfield, and Rep. John Patrick, D-Rumford, both are members of Local 900. Patrick said his job is safe. Bryant doesn’t know yet.

The Maine Department of Labor is working with New Page to help the employees, and a Rapid Response Team will be dispatched to Rumford in February, state officials said. Congressman Mike Michaud said he has been in touch with the DOL, promising to provide assistance to out of work employees.

During legislative sessions, the Constitution requires employers to grant lawmakers leaves of absence – though it can be unpaid. New Page used to pay employees such as Patrick and Bryant their salary when they were off serving in Augusta, but discontinued this last year. This came to light at the same time former Rep. Randy Hotham, R-Dixfield, resigned citing work constraints.

“The mill just made a business decision,” Patrick said. “They didn’t think it was worth us going down.”

In his legislative capacity, Patrick said he couldn’t think of anything he could do on the state level to help the laid off employees. He has, however, suggested to the Rumford town manager that the town look at the company, and consider not taxing the machines.

Bryant said that 60 jobs is about 8 percent of the mill’s workforce. Some of them, he said, will be cut through buyouts.

New Page has bought a lot of mills in the past few years, closed several sites, and in this process the company, “Doesn’t look at the human effect (of job losses),” Bryant said. “They look at buying assets and trying to make money. It has happened way too much in a lot of rural communities.”

In the Legislature, Bryant has been proactive in keeping the manufacturing economy alive in the state. Bills he has worked on supported a fractionation development center and biorefineries – a means of producing new products in an environmentally sound way.

“Paper mills are a staple of the River Valley, Rumford and Jay,” Bryant said. “As the economies do change, we need to do everything in our power to keep manufacturing.”

A press release from Sen. Susan Collins’ office states the reason for the shut down is high operation costs, but Bryant said New Page was making money off the #11 paper machine.

“Shutting it down means they’ll make more money in a different area of the marketplace,” Bryant said.

Gov. John Baldacci and members of Maine’s congressional delegation offered statements today. News of the layoffs had not yet reached legislative leadership, but a spokesman for House Speaker Glenn Cummings, D-Portland, said likely the federal government is in a better position to help than the state.

See also:

Statements from Maine politicians on the New Page job cuts

New Page troubles put spotlight on Edwards, trade policy