Employees hope another company will purchase mill
Read more: Local, Smurfit Stone Container, Ontonagon Mill, Ontonagon, Closure
ONTONAGON -- Like millions across the country, employees at the Smurfit Stone Container, Ontonagon Mill, were banking on the future, hoping that once the economy started the turn, the company would as well.
Now that hope is gone and many are left wondering what they'll do now. The paper mill was the largest employer in Ontonagon County.
Union officials, who represent the 147 union employees at the mill, said they weren't surprised on Monday when company officials contacted them early in the day with the news. An additional 35 salaried employees also work at Smurfit Stone in Ontonagon.
But they are confused, because they say when the mill reopened from May to September of this year, it brought in $1.5 to $2 million dollars in profits per month. They're not sure why the company COO, Steve Klinger, said in a statement that the decision was made to "ensure the company's long-term growth."
"I'd like to see somebody come forth and make an honest effort to purchase the mill," said local union president, Steve Storer, "and the bankruptcy judge rule they would have to sell it to pay off their creditors."
Reaction at Syl's Cafe in downtown Ontonagon was similar. The owner and employees wonder how much business they'll lose after the mill closes.
"It's just hard because those are the jobs the rest of the spin-off jobs are created from," said cafe owner, Kathy Wardynski. "It'd be equivalent to Northern closing in Marquette, Michigan Tech closing in Houghton, the mines when they closed down."
Right now the average hourly worker at the mill makes around $45,000 a year. And since the mill is the largest employer in the county, there aren't many alternatives to pay the bills. Employees have already been out of work for seven months this year after two temporary mill shutdowns.
The question of benefits is still up in the air.
Employees used to pay 20 percent of their insurance premium. They're being told that will end in four months.
It's an unwelcome Christmas present in the Western Upper Peninsula town.
