McAdam's largest employer to close gypsum wallboard plant, putting 59 people out of work | CBC News

2022-09-03 02:18:28 By : Ms. Anna Su

A wallboard plant in McAdam is shutting down, putting 59 people out of work by the end of February.

In an emailed statement, CertainTeed Canada, Inc. spokesperson Dina Silver Pokedoff said the decision was made after "an extensive review of our business."

Pokedoff said the wallboard manufacturing plant, about 75 kilometres southwest of Fredericton near the Maine border, will close by Feb. 28, 2021. 

"We recognize the impact the plant closure will have on employees, their families and the McAdam community," Pokedoff said.

The company will provide career counselling and will try to find job opportunities at other CertainTeed and Saint-Gobain plants, Pokedoff said.

McAdam Mayor Ken Stannix said the majority of the workers affected will be let go on Aug. 28, which is when production ends. He said the product left in inventory will still have to be sold and shipped, so the plant will continue to have seven to 10 people working there from August to February.

He said workers and their families were shocked when they received this news Thursday morning.

"The don't really know which end is up at this point," Stannix said. "They're pretty devastated."

He said aside from the 59 employees, the plant also employs 15 contractors who will lose work as well.

Stannix said the plant managers told him the plant is operating at 22 to 25 per cent capacity.

"The main reason that we got was the market has dropped for wallboard product in not only Atlantic Canada but elsewhere," he said. 

"The costs were just overwhelming the sales."

He said the employees were told they were not the reason for the closure.

"The workforce here, they thought were excellent," he said. "It was purely market-driven."

He said the village has MLA Carl Urquhart, who's filling the role after the death of MLA Greg Thompson, and has also contacted the Premier's office for a meeting. He said the building that will be left behind is a large structure that's well maintained with expansive grounds and what to do with the building and the property still hasn't been decided.

Trevor Holder, minister of Post-Secondary Education, Training and Labour, said he plans to go to McAdam Friday to meet with the mayor and affected workers. 

"This obviously was a surprise to all of us," he said. 

Holder said the primary concern is the workers affected by the plant's closure and efforts will be made to assist in helping find new employment. 

"We will be on the ground tomorrow, our department will do everything and anything that we can with all the resources at our disposal to work with them." 

But the minister said there is a also concern for the community losing one of its last big industries.

"The economy is in a transition at this point. It was in a transition before COVID and it's certainly going to be in a transition because of COVID and coming out of COVID."

Holder also plans to speak with company officials over the next few days about the decision to close 

The People's Alliance Party sent out a media release about the closure Thursday, calling the closure a "devastating blow to the village and the people who live and work there."

"This is terrible for the employees and their families. It is also bad news for the village as a whole," Alliance Leader Kris Austin was quoted as saying in the release.

"Whatever can be done to prevent this closure from happening must be done. If there is no way forward for the plant's future operations, then efforts must be made to soften the financial blow for the employees and the village," Austin said in the release.

Trevor Holder, minister of Post-Secondary Education, Training and Labour said he plans to go to McAdam Friday to meet with the mayor and affected workers. Will also be speaking to company officials.

With files from Rachel Cave

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