A Connecticut packaging company has notified the state Department of Labor that it intends to close a site and lay off up to 71 workers, records show.
Cascades Containerboard Packaging – Newtown, which is a division of Cascades Holding US Inc., notified the labor department in writing that it intends to permanently close its manufacturing facility located at 1 Edmond Road, Newtown.
The closure will take place between April 12, 2024 and April 26 “unless extended by an updated notice,” the company said in a notice to the labor department. The letter, dated Feb. 13, also notes that the layoff would take place 60 days after the notification to the department.
The notification to the labor department comes about two weeks after a Connecticut freight handling company notified the state that it will lay off nearly 400 workers and in an unrelated matter UPS has told the Department of Labor it will let go more than 100 people.
Cascades notes online that it “designs and manufactures corrugated packaging” and has “digital printing capabilities.” The company says it was founded in 1964 and “employs 10,000 women and men who work in almost 75 facilities in North America.”
In the matters earlier this month, Freight Handlers, LLC told the labor department in writing that “due to the termination of its contract with ADUSA Distribution, LLC”, the company plans “to wind down its business and close its operation located at 1315 Tolland Turnpike, Manchester.”
Erin DeWaters, spokesperson for ADUSA Distribution, said at the time that the warehouse at 1315 Tolland Turnpike is an ADUSA Distribution facility and would not close.
“The facility is not closing. ADUSA Distribution remains committed to Manchester and will continue all operations at this distribution center. The notice (to the state) is the result of a decision ADUSA Distribution made to self-manage the workforce at this distribution center,” DeWaters said.
Further, in Windsor, all UPS employees assigned to the “CT Hub in a Box Twilight” and “Night Sorts” at 1 Market Circle, Windsor, “will be separated from employment,” the company told the labor department.
This is “due to volume loss in our network, the company told the labor department in writing.
The Cascades letter was sent to the labor department “Rapid Response Coordinator” as well as Newtown First Selectman Jeffrey Capeci.
“We have advised the employees that the layoff will be progressive between the above two dates,” the letter by Cascades Sector Human Resources Director Mathieu Cote said. “We have also advised that this action is expected to be permanent.”
In response to an email seeking comment, Cascades said in a statement that it will have “an operational realignment and optimization of its Containerboard Packaging platform.
“The currently idled Trenton (Ontario) corrugated medium mill will not restart operations, while the Belleville (Ontario) and Newtown (Connecticut) converting plants will be permanently closed, in a progressive manner, by May 31, 2024. Following recent strategic investments in the Bear Island mill and its converting network, production from these facilities will be moved to other units with available capacity and more modern equipment,” the company said.
Cote wrote that, “While no bumping rights exist that would allow employees to retain their employment, as this is a complete plant closure, the employees’ Collective Bargaining Agreement does provide more senior employees with the opportunity to bump less senior employees provided they are qualified to perform the essential functions of the bumped employee’s position.”
He continued, “As such, employees will be given the opportunity to bump less senior employees, where applicable, which could allow them to retain their employment for several additional weeks until the complete closure of the plant is effectuated. All employees at this facility who do not otherwise secure employment with Cascades will be separated as the entire facility will be closed.”
Cote also noted that Cascades Containerboard Packaging – Newtown is a facility that “employs some individuals represented by the United Steel Workers, Local 4-0902.”
Cote wrote that Cascades additionally “is providing employees with support options such as outplacement services, workshops on job search and interviews, employee and family assistance program, psychological support, and retention allowances,” and that they are “subject to eligibility requirements after the conclusion of their employment.”
A copy of the notice was given to employees and union representatives on Feb. 12, 2024, the notice by Cote says.
The company also noted that its “annual production capacity of the equipment to be shut down is 175,000 short tons of corrugated medium and 500 million square feet of corrugated packaging. Cascades is committed to maximizing the performance of its assets, and the combination of the current market environment, higher operating costs, aging technology and the need for significant capital investment were the determining factors in the decision to cease operations at the facilities.”
Further, Cascades said in the statement, the company “will record $61 million of impairment and environmental obligation charges associated with these closures in its fourth quarter 2023 financial results and will incur approximately $35 million of additional restructuring charges in the coming years.”
“I would like to assure our customers that we will work with them to ensure a smooth transition,” said Charles Malo, president and COO of Cascades said, also in the statement. “I would also like to sincerely thank the Cascaders affected by this announcement. We will stand by them through this process, and we will assist in the relocation of those employees wishing to continue working for Cascades at one of our other locations.”
Cascades said it would work closely with the total of 310 impacted employees “to mitigate, where possible, the effect of this announcement. Employees who cannot or do not wish to relocate to other plants will receive support in their search for other employment.”
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