Tembec Cuts Costs Through Salary Freeze, Reduced Expenses
March 1, 2009 By Pulp & Paper Canada
Montreal, Que. -Tembec Inc. is taking further measures to cut costs. The company recently announced plans to slash 100 white-collar jobs and to shutter an Ontario sawmill, Canadian Press confirmed. Te…
Montreal, Que. -Tembec Inc. is taking further measures to cut costs. The company recently announced plans to slash 100 white-collar jobs and to shutter an Ontario sawmill, Canadian Press confirmed. Tembec has also frozen all salaries for 2009, cut bonuses for its executives, and is seeking to reduce travel expenses as well as participation in associations and research institutes in order to save money.
The moves come on top of previously announced plans to lay off close to half of its work force in B. C., Manitoba, and Ontario.
“The actions announced today are extraordinary measures for our company,” Jim Lopez, president and CEO, said. “However, these are extraordinary times for the economy generally, and for forest products in particular.”
Tembec is also seeking a 10% reduction from material suppliers and a 20% reduction from service suppliers.
At Tembec Inc.’s annual meeting in Montreal in January, Lopez also said the company will increase its focus on becoming more environmentally friendly and gaining Forest Stewardship Council certification, a status he was noted as saying brought in $10 million for Tembec last year.
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