UNA students, families affected by International Paper mill closing
September 26, 2013
International Paper announced it will be closing its Courtland, Ala. paper mill during 2014 Sept. 11. The mill, located in Lawrence County, will affect many UNA students and families as approximately 1,100 jobs are lost.
According to a press release from International Paper, “The Courtland Mill produces papers for forms, envelopes, labels, copiers, printers and magazines. The demand for uncoated free sheet (paper) in North America has been in decline since 1999 and has recently accelerated as consumers continue to switch to electronic alternatives such as online publications and electronic billing and filing.”
According to the release, the company said it is committed to helping the 1,100 soon-to-be unemployed mill workers, but the decrease in demand for paper makes closing the mill the best business decision.
In addition to the jobs lost by the mill closing, Lawrence County will lose another estimated 935 jobs as former employees of the mill reduce spending. In turn, this will affect the county economy, said Peter Williams, a UNA professor of economics.
“These decisions are especially difficult because of the impact to long-serving and hard-working employees, their families and the surrounding communities,” said International Paper Chairman and CEO John Faraci. “This decision to permanently close capacity is primarily being driven by demand decline for uncoated free sheet paper products in the United States.”
Melanie Boyles, a UNA junior, said her father has been employed at the mill for 35 years, so she expects her family to experience a financial change.
“(My family was in) disbelief because my dad would get a bonus check every three months and they were telling the employees that they were making above-projected profit levels and corporate offices were telling them that they were the profit makers for the white paper and they all had no idea that they were even going to be considered for a shutdown,” Boyles said. “They’re closing, in my opinion, to drive the cost of white paper up. Hours after they got the news last Wednesday, the price per ton of paper went up and stayed there.”
Michael Brooks, a UNA sophomore, said his father will be losing the only job he’s ever known.
“My family will lose this paycheck, security in knowing how our food and bills will be taken care of and insurance,” Brooks said. “We were all shocked, surprised, devastated, confused. My dad was heartbroken.”
Brooks agrees with Williams’ estimates that all inhabitants in Lawrence County will see some form of impact from the mill closing.
“The stores, schools and restaurants will also be affected by all of the people having to leave to find new jobs,” Brooks said. “Lawrence County is taking a huge hit from this and it’s heartbreaking for those who have lived their all their lives.”
Clay Austin, a recent UNA graduate, said he is glad he was able to graduate before the mill closed in order to avoid adding financial burden on his family.
The impact of the mill’s closing on Lawrence County’s job market will be short term as former employees will find other jobs, Williams said.
“The good news for laid off workers is that there are government funds for retraining workers through the Alabama Department of Economic and Community Affairs (ADECA),” he said. “ADECA will send a Rapid Response Team to help laid off workers transition to other employment.”