EAST RIVER - Seventy people have been laid off at Louisiana-Pacific's East River plant with little chance of being called back to work.

 The Nashville-based company announced the elimination of 66 unionized positions and four management staff on May 13.

 The layoffs are directly linked to the discontinuation of the manufacturing line that produces both door skins and 16-foot siding, and eliminate finishing operations associated with these products.

 "It's very difficult," said plant manager Phil Ellwood. "It's a gut-wrenching decision. The alternative is not to do anything and put the overall future of the plant in jeopardy."

 The plant will continue to operate the line that produces 12-foot CanExel siding and finishing operations associated with the 12-foot product.

 The layoffs will take place over the next three months after current obligations for customer orders have been fulfilled.

 This is the second round of layoffs in the last several months for the company.

 Last fall about 40 workers were laid off as production slowed in response to the global economic recession.

 When the layoffs come into effect the plant will employ about 198 people, 168 of those unionized.

 Communications, Energy and Paperworkers union representative Donald MacKenzie said the word came down at an information meeting on May 13 at about 11 a.m.

 "It's not good news," he said. "It's a sign of the times, I guess."

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 That, he added, doesn't make it any easier to swallow.

 Mr. MacKenzie said it's too early to tell what options will be available to those whose positions are being eliminated.

 Mr. Ellwood said early retirement packages won't be offered and bumping isn't an option.

 Despite the discontinuation of two of its operational lines, Mr. Ellwood said he remains confident about the plant's long-term viability.

 "I'm quite upbeat about our future," he said. "We still have a solid order base for high-quality, 12-foot CanExel product. We now have a business that focuses on one premier product line. I think that makes us more viable."

 Once the transition phase is complete and the economy rebounds, whenever that may be, Mr. Ellwood said he sees the 12-foot line growing and possibly expanding.

 Mr. MacKenzie said union members will learn more about what options are available to them in the coming days and weeks as more information sessions are scheduled.

posted on 05/19/09