Business owners in Pictou County are expressing concerns about the impact of major job cuts at the Michelin tire plant in Granton, N.S.
Michelin North America (Canada) Inc. announced Monday that it will significantly reduce tire manufacturing at the car and light truck tire plant over the next 18 months.
The company has been a major employer in Pictou County for more than 40 years. The cuts will affect roughly 500 employees.
“I don’t think there’s one person in Pictou County that doesn’t have a friend or relative that works at Michelin,” says Rhonda Cougias, who co-owns Acropole Pizza.
“These aren’t just jobs, these are friends, neighbours, relatives, people in the community you socialize with,” says councillor Andy Thompson.
The company says the move is in response to a continuing shift in the North American tire market to larger size tires, and the limits of the Pictou County plant.
Tire production will be significantly reduced by June 30, 2015 and the change will occur in two phases. A production line that produces small dimension tire cars will close permanently by June 30, 2014, affecting about 200 employees.
The remaining tire production activity at the site will be reduced by June 30, 2015, impacting roughly 300 additional employees, according to the company’s website.
Michelin currently employs about 1,000 workers and an undetermined number of contractors at the plant. It is not uncommon for multiple members of one family to work there.
“Husbands and wives both working at Michelin, so not only one loses a job, both incomes in a family, gone,” says Cougias.
Real estate agent Sherry Blinkhorn says she is already receiving calls from Michelin employees concerned about selling their homes.
“We’ve had the calls over the last 24 hours from people that are concerned. What are we going to do? Will their houses sell?” says Blinkhorn.
She says dealing with real estate can be one of the most stressful situations in a person’s life. She sympathizes with the Michelin employees, but says there’s no need for panic.
“Pictou County, as a real estate agent, is an easy place for me to sell real estate,” she says.
Blinkhorn says the market in northern Nova Scotia is strong and the economy in Pictou County is diverse. She also says there are new opportunities in the works.
“New jail is coming, they’re talking about the medicinal marijuana place,” she says.
But there are concerns among small business operators.
“We deliver at Michelin. I don’t know which departments it goes to, but I’m sure it’s going to affect us,” says Cougias.
“It’s the human impact right now that is really worrisome for me,” says Thompson.
Officials at volunteer organizations, like minor hockey and volunteer fire departments, are also expressing concerns about the impact of the cuts.
About six volunteers at the Town of Pictou Fire Department work for Michelin.
“The potential loss of Michelin, that’s key members we won’t have,” says Fire Chief Paul Janes. “This affects neighbouring departments in Abercrombie, Caribou and all across the county.”
The company says the reduction at the Granton plant will not affect its tire plants in Bridgewater, N.S. and Waterville, N.S.
Employees affected by the reduction will have an opportunity to relocate to the plants in Bridgewater and Waterville.
With files from CTV Atlantic's Rick Grant
