PT mill lays off 14, cites rising cost of energy, materials

PORT TOWNSEND — The Port Townsend Paper Corp. mill — Jefferson County’s largest private employer — has laid off 14 people in the face of rising costs of energy and raw materials, bringing its work force down to 300 people.

“If the price of oil keeps going up, then we have to do something to manage it,” said Chuck Madison, vice president of human resources.

Five full-time salaried employees were told they were laid off on Monday, and immediately left the Port Townsend mill.

Nine hourly mill workers were informed on Monday that their jobs would be cut on Aug. 31.

The company also announced that retiring employees’ positions would not be filled for the remainder of 2008.

The layoffs — the first since the company reorganized under Chapter 11 bankrupty protection in 2007 — are part of a larger restructuring of the mill’s operations, the company announced.

Several employees are to be reassigned within the mill.

Madision said the company would not identify the employees who were laid off, citing their privacy.

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