(The following article is from the November 16-30, 2007 issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $25/year, or $12 low income rate; for U.S. readers - $25 US per year; other overseas readers - $25 US or $35 CDN per year. Send to: People's Voice, c/o PV Business Manager, 133 Herkimer St. Unit 502, Hamilton, ON, L8P 2H3.

By Sean Burton

Within months of the loss of its gypsum plant, the western Newfoundland city of Corner Brook was dealt another economic blow, this one from the city's most vital industry: the large pulp and paper mill owned by Kruger. The company announced on October 22 that it was shutting down one the mill's paper machines, citing the high dollar as the reason.

     Over one hundred employees are in the process of being laid off as the machine officially shuts down on November 5. More jobs are in jeopardy, according to the head of one local union, since any further increase in the value of the dollar diminishes Kruger's profit.

     The consensus in the city is that this announcement was no real surprise, but little can be done about it. And no wonder. Newfoundland's minister of natural resources, Kathy Dunderdale, had already stated that no subsidies will be offered to keep the machine running. The Opposition has raised the issue of how long the Williams government knew about Kruger's plans, and it was confirmed by Dunderdale that one of those who broke the news to the government just after the October 9th election was the brother of Premier Danny Williams.

     Complicating this situation is the fact that Newfoundland's House of Assembly will not be in session for several months. Workers in Corner Brook have justly asked where Premier Williams is during this crisis, which is in his own district, and have requested his input. The office of the premier stated that he was currently on vacation. Workers fear a lack of understanding among government officials about the impact of this shutdown. Younger, well-educated workers are going to suffer the most because of their lack of seniority, including this writer's brother. In the meantime, there is the possibility that the number of layoffs will be reduced in the end due to early retirements.

     Danny Williams and his Progressive Conservative Party won an enormous majority in the Newfoundland and Labrador election, taking 43 of 47 seats. This is no doubt tied to his confrontational policy with the Harper government and his nationalist rhetoric, something rarely seen in Newfoundland political leaders. Yet for all his speeches, Newfoundland outside of St. John's has continued to suffer setbacks. Nothing has been done to protect Corner Brook's industries, or those of other towns in the province. In light of current economic events, unless something is done, Corner Brook may well have been dealt a fatal blow.