Thursday, August 02, 2007

Biting Comments on Layoffs From Scotia/Rio Dell

Barbara Griffith, who grew up in Scotia, said, “I’m astounded at the lack of care for the workers that have laid their lives out for (PALCO).”

“Everything over there has gone from bad to worse. It’s like a death in the community.”

Terry Matthews, longtime PALCO employee, said, “It’s sad to see a way of life go by the wayside.”

Doug Hartley, truck driver for Redwood Coast Trucking, put it more bluntly. “They’re bailing out,” he said. “I predict they’ll be belly-up in two years.”

“Maybe a decent company will come in and run the company like it ought to be run.”

Full Article at the Eureka Reporter.

Wednesday, August 01, 2007

100 Millworkers Laid Off, Scotia Mill To Close for a Month

Layoffs
Area papers are reporting the layoff of 100 Pacific Lumber employees and a month long shutdown of the Scotia Mill. This is due to the ongoing financial and resource depletion at the hands of the Maxxam corporation. Maxxam CEO Charles Hurwitz executed a hostile takeover of PL in the early 1980's using money from savings and loan scams. Hurwitz has kept the company in perpetual debt while siphoning off millions of dollars.Pacific Lumber filed for bankruptcy protection last year when they were unable to make payments to their creditors. Much of PL's debt is collateralized by their timberlands. The "ad hoc committee" of creditors wants the land to be handed over to them. The ad hoc committee includes large banks and insurance companies. A lawyer representing the committee in court has said that they want to implement sustainable forestry practices if they gain control of the land. They claim this is good buisness sense and that they are not tree-huggers.

Judge Schmidt to Visit
The Judge presiding over the bankruptcy hearings (in Corpus Christi, Texas) confirmed that he will be visiting the town of Scotia this summer, saying he would give the parties a two week notice.

Visit Humboldt Herald for more news.


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