THESSALON - A lumber producer in Thessalon, Ont. that has been active for more than seven decades quietly shuttered its operations late last month — resulting in the layoff of roughly 40 employees in the weeks leading up to its impending closure.
Midway Lumber Mills Ltd. first notified employees of plans to shut down the mill and lay off its workforce in October of last year, the soon-to-be former chair of USW Local 8748 told SooToday on Monday.
“We got nine weeks advance notice that it was going to happen,” said Derrick Bookman, who has worked in a number of roles at the mill over the years. “They went above and beyond.”
Employees were provided with severance packages from ownership as part of the lumber mill’s plan to close its doors on Dec. 20, 2024.
“They took care of us pretty good, actually,” Bookman said.
About 20 employees were left at Midway Lumber when operations were shuttered last month.
“The log supply was a big issue, trying to get logs out of the bush. The cost of everything — fuel, the electricity — was just getting to be too much,” said Bookman.
“They were hoping to try to get a good log inventory established. They were hoping to try and get started up again, but I haven’t heard too much more through the grapevine.”
There were signs that operations were winding down prior to Midway Lumber representatives announcing plans to close the doors to the lumber mill, Bookman said.
“The way things were going — very few to no logs in the log yard. We did have orders in the planer, a fairly good supply of lumber,” he said. “But you could sort of see something coming.”
The majority of the workers who were laid off from the mill were from different parts of the Algoma District, including Thessalon, St. Joseph Island, Bruce Mines and Sault Ste. Marie.
"A lot of these individuals who had gotten laid off earlier than that have found other jobs,” Bookman said. “There are some who have found other jobs, some who are looking — and there were a few who were looking at retirement.”
Mike Morgan, president of Midway Lumber Mills Ltd., declined to comment on the shutdown when reached by telephone over the weekend. “I have no comment at this time,” he said.
The lumber mill was first established in Thessalon by John B. Morgan after relocating to the Algoma District from southern Ontario in 1948. Another business operated by the Morgan family, Birchland Plywood Veneer, remains operational to this day in Thessalon after incorporating in 1958.
“It is a significant loss for a community,” Thessalon Mayor Bill Rosenberg wrote in an email to SooToday Monday.
“The Morgan family have been a big part of Thessalon and continue to be with the plywood and veneer mill’s operations. Out of respect and privacy for the Morgan family, that would be my response at this time.”
Midway Lumber Mills Ltd. employed upwards of 110 workers at one time, according to Bookman, producing both hardwood and softwood lumber products around the clock during the mill’s peak.
“There’s been a lot of people come and go through that mill,” he said.
