Unite Viewpoint

Job losses continue in Quebecor, following the closure of the UK Corby plant. With its Canadian and US plants in protection from creditors Quebecor World Inc. is shutting one of its oldest Canadian sites axing 300 jobs with the closure of a 37-year-old plant in Magog, Quebec. QW is also losing long-time customers due to the switch away from printed catalogues to electronic media. (See story below) "The reason it's closing is because it's a part of the retooling and restructuring plan that we started three years ago to relocate in larger, more efficient facilities," Quebecor World (TSX: IQW) spokesperson Tony Ross said in an interview. Although the retooling plan began years ago, the decision to close Magog was made only recently, he added. A few of the employees may be offered transfers to other facilities but the majority of workers will lose their jobs. The work will be transferred to other Quebecor World facilities, but the aging equipment won't be moved, said Ross. Local Union 41M of the Teamsters' Graphic Communications Conference, which represents the affected workers, said the closure appears linked to the slumping economy and strength of the Canadian dollar. "We knew that the situation was difficult but we never saw this morning's announcement coming," said Denis Fournier, secretary-treasurer of the Teamsters Local Union. "Our members are in a state of shock." The plant, which began closing immediately, was operating at 20 per cent capacity due to reduced demand at this time of year. The closure leaves Quebecor World with 2,000 employees at six plants in Quebec, printing magazines, catalogues, retail inserts and directories. The international company also has operations around the world, including the United States and Latin America. The Montreal-based commercial printer was forced into creditor and bankruptcy protection after its banks rejected a rescue plan in January. Quebecor World has lost several major printing contracts recently. Last week, Canadian Tire Corp. (TSX: CTR) announced it would get rid of its iconic paper catalogue sent to millions of Canadian homes each year as consumers increasingly shop online. The move came after the Montreal-based company said it wouldn't fight the Economist magazine's efforts to preserve its right to terminate their contract later this year. Quebecor World shares traded unchanged at 15 cents in trading of more than six million shares Monday on the Toronto Stock Exchange. Unite and our members in the UK have every sympathy for our brothers and sisters in the IBT-GCC in Canada and we can't help but think what moe bad news is in store for QW staff throughout the world.