Pollard closure kills off 200 jobs

November 6, 2009 By CAM FORTEMS Kamloops Daily News Staff

One of the city’s largest private sector employers will shut down in February, resulting in the loss of 200 jobs. Workers at Pollard Banknote were called in about 2 p.m. Thursday and told the Kamloops operation will close Feb. 26. Production of lottery tickets from around the world – including B.C. Lottery Corp. products – will be moved to Pollard’s headquarters in Winnipeg and another plant in Ypsilanti, Mich. Gordon and John Pollard, co-chief executive officers and part of the Pollard family that founded the company, were in Kamloops to deliver the news to shocked employees. “It’s not a good day for anyone,” Gordon Pollard said in an interview. “It’s not a good day for our company. It’s a decision we had to make.” Pollard said the plant closure here is the most significant in the company’s history.

Two Pollard employees who spoke to The Daily News on condition of anonymity said some workers were lulled into confidence several months ago when B.C. Lottery Corp. signed a new contact with the company for printing. However, the lottery corporation comprises only a small portion of the printing at the Kamloops plant. “Everyone was completely stunned,” said one veteran employee. There were quite a few teary eyes.” Pollard said the closure is a result of increased global competition. The company has too many production plants and not enough contracts. “With the competition we face we’re not able to operate as many factories as we have. Unfortunately, if we’re going to be competitive, we had to close this one.” Pollard Banknote reported a $29 million profit for the first nine months of the year, up from $26.5 million for the same period in 2008. Its costs rose by a similar amount. Company financial statement released Thursday noted closing the Kamloops plant will result in a one-time cost of $5 million in severance and other charges. On a long-term basis, Pollard Banknote reported the Kamloops plant closure will save the corporation $4 million a year. (more)