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January 28, 2009

Pink slips issued at NewPage, EMMC

By The Mainebiz News Staff

The recession claimed more Maine workers this week as employees at NewPage paper mill and Eastern Maine Medical Center got grim news yesterday.

About 130 workers will be permanently laid off from the Rumford paper mill, as that facility tries to rein in costs, reported the Sun Journal. The rolling layoffs will continue through February, affecting about 100 hourly and 30 salaried employees - roughly 13% of its work force. Mill officials cited Rumford's higher operational costs compared with other NewPage mills as one of the reasons for the layoffs. In addition to the reduction in force, managers are considering other moves to address higher costs for raw materials, wood, chemicals and energy, reported the paper.

In Bangor, officials at EMMC said the hospital will eliminate 52 vacant positions and 24 positions that now are filled, cutting clinical jobs as well as jobs in other areas of hospital operations, reported the Bangor Daily News. The job reductions are part of an overall plan to reduce costs at the hospital, which also include postponing a $200 million update of the main campus, purchase of new equipment and overtime reductions. The hospital is offering to rehire the 24 employees whose positions were eliminated for other jobs that are currently vacant. The hospital employs more than 3,500 people, according to its website.

The Daily News also reported that Bob Grindrod, president and CEO of the Montreal, Maine & Atlantic Railroad in Hermon acknowledged that the railroad has laid off 75 of its 315 employees over the past six months. Grindrod said the railroad was in no danger of closing, but felt the layoffs were necessary to control expenses during the economic slowdown.

 

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