Nearly 200 workers at the McKinley Paper Mill in Port Angeles will lose their jobs Aug. 25, according to an email sent to employees last week.

In the email, McKinley Paper Company Operations Director Issac Rosas said an “indefinite mass layoff affecting approximately 193 employees” will begin Aug. 25.

The letter served as an official notice under the Worker Adjustment and Retraining Notification (WARN) Act, which requires most employers with more than 100 employees to provide 60 days notice of pending layoffs or closures.

“We expect that Aug. 24, 2024, which is the end of the 60-day WARN notice period, will be the last day of work for the majority of the effected employees before the indefinite layoff,” the letter said.

“Based on the information available to us at this time, we hope that the facility will resume operations at some point in the future but we cannot say when.”

The letter was sent to employees on June 25 and posted to social media shortly afterward.

Representatives from McKinley and its parent company, Bio Pappel, did not immediately respond to request for comment.

According to the letter, employees released from employment before Aug. 24 will receive their full pay and benefits for the full 60-day period. Employees who are assigned work but choose to leave the company will not be entitled to pay or benefits beyond their final day of work.

McKinley will have limited jobs beyond Aug. 25 in order to maintain the facility in a safe manner, the letter said.

Some of the workers affected by the layoffs include members of the Association of Western Pulp and Paper Workers union based in Vancouver, Washington. Representatives from the union did not immediately respond to requests for comment.

There will be no transfers or bumping rights, but employees can apply for positions at other McKinley locations, the email said.

Dallas-based McKinley Paper Company is owned by Bio Pappel, headquartered in Mexico City, Mexico, the largest manufacturer of paper and paper products in Mexico and Latin America.

In June 2023, the Port Angeles mill’s general manager, Fletcher Austin, said the facility was struggling to maintain its workforce. At the time, Fletcher said the number of employees at the mill was 174, down from 200 in September 2022.

Union response

Union representatives and local officials expressed dismay at McKinley Paper Company’s plans to lay off employees at its mill, saying the cuts will negatively impact the community.

In a statement on June 27, the Association of Western Pulp and Paper Workers Union (AWPPW) — the union representing several workers at the mill — said it was deeply troubled by the layoffs.

“This is a devastating blow to our members and their families, coming without warning in the midst of bargaining,” said Scott Tift, general president of AWPPW.

“We are committed to understanding this decision and fighting to keep the facility in operation.”

The company said operations may resume in the future but could not say when.

Josh Estes, a spokesperson for AWPPW, said the union and the company had been in contract negotiations since May, and an area representative was on their way to Port Angeles on June 25 for another bargaining session when they received notice of the layoffs.

Estes said the union was open to negotiating with McKinley to find a way to keep the mill operating.

“Our No. 1 focus is doing everything we can to find a path to keep that facility open,” Estes said. “We’re more than welcome to facilitate the conversations for any pathway possible to keep that facility open and support our members.”

Estes said the company cited market conditions as an explanation for the layoffs but did not specify what those conditions were.

“You always hope it’s not a bargaining tactic,” Estes said of the layoffs. “We have to focus on what is causing this to shut down and how can we be a supportive mechanism to try and keep this facility operational.”

Estes said the pulp and paper industry faces an increased regulatory burden that puts constant pressure on facilities to reduce emissions.

“There are regulatory conversations constantly that are making it difficult for this industry to continue to keep the jobs here,” Estes said.

Legislators react

The union’s statement also included comments from state Rep. Mike Chapman, D-Port Angeles, and Sen. Kevin Van De Wege, D-Lake Sutherland, who said they supported AWPPW’s efforts to retain jobs at the mill.

“I was a bit frustrated they didn’t reach out to the legislative delegation to see if there’s anything the state could do,” Van De Wege said. “Many of the mills that have closed and laid off workers in the past we’ve been able to get reopened.”

Van De Wege agreed that legislation like the Climate Commitment Act placed standards on facilities that will be difficult to comply with, even with 10 years to meet the act’s 2035 deadline. However, he said companies have improved their environmental emissions over the years and that it would be possible to amend the law to make it less burdensome.

“Mills that operate like that can do so in an environmentally friendly way,” Van De Wege said. “But we’ve got to be realistic about the goals we set out for them.”

Chapman repeatedly used the word “disappointing” in a separate interview and said he feels the company owes workers and the community further clarity about the cuts and the future of the mill.

“Their statement was less than forthcoming to a community that’s been home to this mill for years,” Chapman said. “I think we as a state and we as a community deserve a little more clarity.”

Chapman said he, Van De Wege, and state Rep. Steve Tharinger, D-Port Townsend, worked to support small mills in the Legislature, pointing to tax exemptions extended as recently as last year.

“This has been a partnership,” Chapman said. “I’d like to offer to the mill: what can the state do to help, but first, let’s get back to the bargaining table.”

Officials also expressed concern about what the loss of so many jobs would mean for the wider community, particularly on other businesses that rely on mill workers and their families as customers.

Port Angeles City Manager Nathan West said several hundred thousand dollars worth of utilities tax revenue goes into the general fund each year, but the city had also diversified its revenue streams to be less dependent on a single source of income.

“Right now I feel we have a lot of healthy revenue sources we can rely on,” West said. “That doesn’t mean there won’t be impacts.”