Kind of shocking news for most, but not for the workforce. We have seen the company cut back on small items like linen service to the purchasing of essential materials such as wood chips. Evergreen seems to have a cash flow problem.
Our parent company Lee & Man Paper has went from a 52 week high of $37.00 a share to as low as $3.58 a share on the Hong Kong stock exchange. They had plant closures due to the Bejing Olympics, and now the pulp market has went soft as well.
Locally, our union workers have been asked to take a 15% reduction in wages and to be prepared for temporary closures with layoffs of production workers. Along with this, the company has announced a reduction in hourly staff from 165 to 145.
The only way for there to be a reduction of wages is for there to be an election of the bargaining unit (our union body) and a majority agreement to accept a pay cut. We are currently under a binding labor agreement (Labor contract) with Evergreen until June of 2009.
I personally have issues with this request, as Lee & Man has reported gross profits of 1.4 Billion dollars on March 2007 and 2.1 Billion dollars on March 2008. (Lee & Man Paper Manufacturing Ltd. (2314.HK): Financial Statements - BusinessWeek) No savings for a rainy day? And I have locally witnessed many dollars wastefully spent in speculative operational ventures that have produced nothing but an abundance in scrap metal. Ultimately, the workforce might be requested by Evergreen to make a sacrifice of their agreed upon wages. Hopefully we will have a quick resolution.
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21 comments:
Maybe your good buddies at baykeepers will let do the windows or empty trash cans. They care so much about working folks. ROTFLMAO!!!!!!!!!!!!!!!! We don't need no stinking jobs on our eco-groovy bay.
I agree-COWABUNGA DUDE
How scary for you all! It looks like Wall Street's mess is landing here in Humboldt.
Richard,How come I found out about the layoffs from the f'in newspaper? NOT COOL!
It is not has went, it is has gone. Basic english!
Soon, perhaps Richard's job will has went south (or far east).
Hey Richard, is that tan oak chipper that was recently bought operational, or is it one of the scrap metal items?
It was nice to meet you at the picnic, by the way.
Brian: If you worked at the mill, you knew. We had a packed house at the union hall on Wednesday. I was not going to contact media on what Evergreen was just proposing. Wouldn't have been prudent if they decided to change their mind. Once they made this public, I have chimed in. Our standing committee will be meeting with the comapany soon on this subject.
lodgepole: It is scrap now. They put up thousands of dollars to prepare the area it was going and it is just sitting there. Frustrating.
Maybe the worker friend Mel McKinny would hire you to nark out your layed off union pals if the helped a neighbor roof the house. Hell they don't need no f#@^*%g jobs round here anyway.
Getting just as bad up here Richard. GP is going to start lay offs at there Camas paper mill and that will trickle down to their DC warehouses. I know IBU and Longshoremans up here are buckling in for a fight. I got out of there just in time and took a AFSCME Jub with OHSU. Medical field at least doesnt slide as much.
On a sports note, I actually went and played some 3 on 3 for the first time since leaving Eureka. Guess what, I aint as good as I was 10 years ago. LOL Still got a fairly accurate hook though. Just cant jump, run, to sloe to play D.
Rambo: But you are playing again! Keep it up, and no I haven't played "D" in years! Just keep moving!
Richard:
Why is the Labor Temple on E Street in Eureka displaying a Polly Endert sign what wasn't union made?
Heraldo has photos at his blog.
11:31am-As they had Bonnie Neely when I ran against her.
Virginia has not worked at the pulp mill for months.
Richard,
From what I heard, traditionally Chinese companies are much more interested in managing cash flow than profits. That can cut both ways, it allows for long term planning but means severe cuts during downturns.
Looking over your link shows that L&M took out over $1.25B in loans last year and spent half it in capital improvements the rest to refinance older loans. Both their receivables and inventory are way down, a very bad indicator or current and future conditions. It does look like they doubled their dividend.
Their balance sheet wasn't updated to 2008 but looks like they may have $43 Million cash on hand, thats not very much, considering.
The stock (symbol LMPMY) closed at $2.30 on Friday, an all time low and down 44% this month. The drop is a result of the news item below:
26 Sep 2008
Xinhua Newsfeed
HONG KONG (XFN-ASIA) - Lee & Man Paper Manufacturing Ltd shares were sharply lower after Credit Suisse cut its target price on the stock to 6.75 hkd from 9.85 hkd, citing bleaker earnings prospects.
At 11:25 am, the stock was down 0.47 hkd or 8.9 pct at 4.84.
Credit Suisse said in a brief note that Lee & Man may miss its profitability target of 500 hkd per tonne for this year as the company cut its average selling price by 6 pct in the third quarter from the second-quarter level.
The brokerage said high energy costs will also exert pressure on the company's profitability
Richard, since I moved up here I went from 190 to 275 pounds, moving sometimes aint a option. LOL. But i can sure hit some 300 plus drives and jack one over a fence easier
not a native: Thanks for the update. Not good news.
Rambo-Extra weight always seems to help the HR numbers. When I was at 250lbs I could jack them out easy. Now I am under 220lbs, not so easy.
Yea but the extra wieght also brought on the need for insulin. Oh well, I still think i am better off then when i was down there, skinny, stuffing "powder" up my nose and not eating. I have joined a swim and gym up here and see if i can take some of this off slow.
Richard you are living in a fantasy world. You could never jack them out "easy". Warning track power only.
"They had plant closures due to the Bejing Olympics, and now the pulp market has went soft as well."
...and now the pulp market has gone soft as well.
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