Efforts fail to save plant

By Richard Rolke - Vernon Morning Star Published: October 28, 2008

Even the intervention of local politicians won’t be enough to save Lavington’s glass plant. Owens-Illinois says it has no plans to reverse the closure, which takes place Friday, even though the Canadian dollar’s value has decreased compared to its U.S. counterpart, generally a positive situation for domestic exporters. “The recent shift in value of the Canadian dollar does not change the decision to close the plant.” said Lauren Dubilzig, with O-I corporate communications, in a statement to The Morning Star. On Monday, Vernon council instructed Mayor Wayne Lippert to meet with Coldstream and North Okanagan Regional District officials to discuss the closure and the loss of about 300 jobs. Lippert believes the recent drop in the Canadian loonie warrants pursuing O-I to keep the facility open. “Indications are they wanted to close because the Canadian dollar is high but that’s changed,” he said. “It may be last ditch but we’re better off to try now than later on.”

O-I announced the closure in August, and while Lippert admits meetings should have occurred earlier, he says the economic development function is transitioning from NORD to the city.“It’s been unclear and not functioning well because of the instability and what will happen there,” he said. The concept of lobbying O-I has been promoted by local businessman Jack Borden. “With the recent drop in the Canadian dollar, the glass plant has just received a net increase in the sale price of their exports of 15 to 20 per cent,” he said in a letter to the city, Coldstream and NORD. “Combined with some political persuasion and a possible tax break, is this enough to convince O-I to delay the closing of the plant at least until the spring? It is time for Greater Vernon elected officials to take immediate action.”

The District of Coldstream, though, says provincial legislation prevents tax relief benefitting a business, and high equipment costs are also a challenge for the plant. Concerned about the impact of the closure on Coldstream, Mayor Gary Corner has discussed the matter with the provincial economic development office. “They’re very much interested in, not so much keeping the glass plant open, but, in what possibly could be put in there,” he said. While Lippert wants to see if the glass plant can remain operating, another reason for meeting with local politicians is to discuss a future without Owens-Illinois. “It’s a huge employer,” he said, adding that the plant’s workers pay property taxes and spend their wages in local shops. “If they decide to close, we need to see what options there are for that plant. I’ve had discussions with the Ministry of Economic Development and they have offered assistance.”