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Northern Pulp makes plans to close mill – TheChronicleHerald.ca

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HALIFAX, N.S. —

Northern Pulp and Unifor, the national union that represents 240 of its Pictou County mill workers, voiced deep disappointment with Premier Stephen McNeil’s decision not to extend the Boat Harbour closure deadline.

“Today is a very tough day for those of us at Northern Pulp,” Brian Baarda, chief executive of Paper Excellence Canada, Northern Pulp’s parent company, said at a late-morning news conference Friday at a downtown Halifax hotel.

He said the company would start implementing plans Friday to close the Abercrombie Point mill.

“This decision ensures the closure of Northern Pulp, the devastation of Nova Scotia’s forest industry, the loss of 2,700 rural jobs and a significant impact to another 8,300 forestry jobs across Nova Scotia,” Baarda said.

The premier made the government’s position clear at an earlier news conference.

“There will be no extension,” MacNeil said.

“The company has had five years to get out of Boat Harbour and it is not even close, now it’s decision time.”

Baarda said the company will meet with government early in the new year to talk about what the plant closure will look like. During that conversation, the concept of idling the mill will likely come up, Baarda said, “but we don’t believe that it is possible without continuing to use Boat Harbour.”

‘Five days before Christmas’

“Our thoughts are with our employees, five days before Christmas, we’re going to focus on that,” Baarda said when asked if the company would pursue a lost-earnings claim against the government.

“At this time, for our workforce, we are offering on-site support and counselling to our employees and their families through our employee assistance program,” Baarda said. “Today, we will start the process of delivering layoff and contract-cancellation notices and start implementing plans to close Northern Pulp.”

Baarda cut questions short at the news conference because he was heading to the mill to meet with employees.

Baarda said Northern Pulp had put together an excellent plan based on sound science that showed no meaningful environmental impact from the proposed effluent treatment plant, a plan that represented operational improvement and insured that thousands of forestry workers could remain a vital part of the Nova Scotia economy.

“It also enabled timely closure and remediation of Boat Harbour,” Baarda said. “The premier chose to disregard those facts.”

Baarda blamed the company’s delay in getting its replacement effluent treatment facility plans together on the government.

“It is apparent that Nova Scotia Environment has been unable to provide a definitive process over the last four-and-half years. We have continued to respond to each and every additional request for further science. Our initial investigatory work changed dramatically from seven reports to 68 current individual areas of study. Had Nova Scotia Environment wanted a full environmental assessment from the outset, we would have been prepared to deliver it.”

Baarda said he has great respect for the professionalism and dignity shown by the mill’s workforce throughout the ordeal.

“The people at Northern Pulp have continued to remain focused on the things that matter, delivering on the best safety performance in Paper Excellence, meeting production targets while continuing to protect the environment.”

‘He just decimated rural Nova Scotia’

Linda MacNeil, director of Unifor Atlantic, said it is a sad day for the mill employees and all forestry sector workers in the province.

MacNeil said the premier’s announced $50-million transition fund is not a consolation.

“Let’s put that in perspective,” an angry MacNeil said. “The mill in an annual salary pays out $40 million for 300 employees, $40 million a year. The transition fund, $50 million. That doesn’t include the rest of the forestry sector that is going to be impacted by this irresponsible decision.

“That transition money is basically going to buy bus tickets for employees at the mill to move to another province because, guess what, obviously the premier doesn’t respect those employees or anything to do with rural Nova Scotia because he just decimated rural Nova Scotia.

“If that is the legacy that he wants, he is certainly going to get it.”

MacNeil also took the premier to task for laying blame on the company for not getting its new wastewater treatment facility approved and built in the five years since the Boat Harbour closure was announced.

“The Nova Scotia environment minister and the department have to take some responsibility because there was no clear path going forward,” MacNeil said. “If there had been, it would have been willingly done, that I can ensure, from the company.”

MacNeil said the government decision will not serve the province well in the long term.

“What company is going to look to invest as they see this unfold. Disappointment does not do this justice. Anger, sad, heart-broken and five days before Christmas …”

Baarda offered no comment on the premier’s claim that the company will be on the hook for the $85 million in outstanding loans it owes the province. The Chronicle Herald reported last month that Northern Pulp and an associated company owe the province $85,478,537 in three outstanding loans.

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.

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