Lincoln plant cuts workers, pay
Lincoln Paper and Tissue is planning temporary layoffs and salary cuts in response to collapsing demand and record price drops in pulp and paper markets.
As part of wider cost-cutting measures, 17 production workers will be temporarily laid off, and most hourly maintenance workers will no longer work on Fridays, according to a company press release. Also, all salaried employees' pay will be reduced by 15%. The measures, effective Monday, will be instituted for three months and are designed to reduce the company's operating costs by millions of dollars annually.
"We have taken other steps to conserve cash by reducing our capital program to minimum levels," Keith VanScotter, president and CEO of the company, said in the release. "However, given the continued downturn, conditions could very well get worse before they get better and we will be prepared to weather them." The company employs 350 people, according to its website.
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