At the end of April, Verso Corporation suddenly announced that it will end all paper production at its Luke Mill paper plant, now set to occur just one month after the announcement was made (operations will cease at the end of May, a month before the plant’s official close date at the end of June). Located in western Maryland on the North Branch of the Potomac River, the plant produces approximately 450,000 tons of paper a year, employs over 675 workers, and is the heart of the local economy. The impact of these lost jobs will be felt throughout the community, well beyond those who are employed by the facility -- indeed, the potential number of local residents hurt will be three times as great.
Some area loggers, who may have investments totaling up to $1,000,000, will be forced into bankruptcy. And a local waste-water treatment plant may be forced to scale back and be negatively impacted.
After over 130 years of service, this is not the way to transition a community that is so intertwined with its key local industry. The abrupt announcement by Verso and the extremely short window of time before the plant’s closure are not fair or respectful to the workers and the Luke Mill community. The extent to which this action blindsided the workers and the community is shown by the fact that plant managers reportedly were still interviewing applicants for new positions at the plant weeks before the closure announcement. While Luke Mill had been struggling financially, there was little to no suggestion or warning that the plant was facing an imminent cessation of operations.
The Sierra Club recognizes the historic, at times tense, discussion surrounding Luke Mill and clean energy policy for which we have been a part. However we’re deeply unhappy with this ruthless corporate decision to shutter a facility with such short notice and no planning for the future welfare of the workers and the community -- especially a facility that has been so central to the economic livelihood of Western Maryland.
Therefore, we offer our full support for the efforts on the ground of local unions and public officials to secure a good and prosperous economic future for the affected workers and families.
We are reaching out to our partners in the labor movement and to local community leaders to ask how we can help -- but we need you too. It’s time for all Marylanders to show solidarity and provide support for the community and the region. All of us, including the Sierra Club, share a responsibility for ensuring that the dignity of workers is the foundational principle that guides investment from Maryland and the private sector in the Luke community during this transition.
We strongly encourage state and federal officials to listen to the community, respond to local requests, and bring diversified economic development to the region. Not to mention we need to see Verso protecting the medical benefits and pensions of the impacted workers as they transition and train for new opportunities. And we encourage our partners in the clean energy economy to invest in the region and bring family-supporting, union jobs. It’s time for us and our public officials to listen, and to follow this up with concrete support and action.
The closure of Luke Mill will not be a unique or one-time event in Maryland. With market demand decreasing for fossil fuels like coal, and globalization reshaping industries, it’s time for leaders to start thinking proactively about how to allocate the resources needed to provide a just transition for workers, families, and communities. Other states like Washington, New York, and Colorado have shown leadership in this space. Maryland should not and cannot wait to have community protection and transition conversations -- we must show leadership and action. Workers and communities deserve to know their futures are secure, no matter where they work. Maryland can and should be a leader in demonstrating what an equitable and labor-supported transition looks like.