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Closure of El Colorado Sawmill: Union Seeks Labor Retraining Measures

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• The president of the workers' organization, Cristian Meza, emphasized that they will seek alternatives through the Government following the announcement of the cessation of operations in Curanilahue.

Despair among workers is the current situation at the El Colorado sawmill in Curanilahue, following the announcement of the plant's complete closure, which is expected to result in around 143 layoffs by mid-June.

According to the company, the reasons are both commercial-operational and the persistent insecurity in the area, particularly due to intentional fires, along with land usurpation and forest exploitation, which have significantly reduced the required raw materials.

This has created a major unemployment crisis, prompting the El Colorado union to assure that laid-off workers will receive support through retraining programs to help them reinvent themselves, while Celulosa Arauco stated that some will be relocated to its facilities.

Different Perspectives

"There are too many unemployed workers, some with a lifetime spent at the company," lamented Cristian Meza, president of the El Colorado Plant Union.

"The situation is sad because no one expected it. A month ago, they reduced us to a single production shift, laying off 65 people, and last Friday the plant ceased operations, dismissing 78 more. These layoffs add to others carried out earlier. By mid-June, El Colorado will close permanently," he added.

Another aspect of the layoffs is the seniority of the employees. According to Meza, many have worked their entire careers at the plant, and due to their age, reinventing themselves will be difficult.

"The age range of El Colorado workers is very high since the sawmill operated for 33 years, and many had worked there that entire time. Their age may hinder or limit their job prospects elsewhere, especially since there are no similar companies in the area, making the situation even tougher. As leaders, we aim not to leave our members helpless and are seeking Government-backed retraining opportunities in Curanilahue, providing access to training so they can reinvent themselves," he added.

Legally, workers are receiving their respective severance payments. The union leader stated, "Full severance was paid to those with over 11 years of service, and differences in years were compensated based on base salary, so in this case, the company paid more than legally required."

Meanwhile, Celulosa Arauco stated in a press release that after reducing one shift in April, the decision to close El Colorado was due to increasing operational difficulties, leading to a structural competitiveness problem, compounded by security concerns and declining raw materials.

"Returns from operations have turned negative, as we sell to low-value-added markets, face supply difficulties, and incur additional costs, now worsened by growing logistical challenges (rail, land, and port). Additionally, the raw material (log) supply chain has been severely disrupted lately by land usurpation, seizures, timber theft, past-year fires, and ongoing violence in the Province," part of the statement read.

Celulosa Arauco also assured that some workers will be relocated within its facilities and expressed willingness to support all former El Colorado employees.

Security for the Area

Alejandro Casagrande, president of Corma (Chilean Wood Corporation) Biobío-Ñuble, stated that El Colorado's closure reflects the forestry sector's toughest challenges in recent years and lamented the job losses, which have significantly declined over the past decade.

"These layoffs add to the over 32,000 jobs lost nationwide in 10 years. The sector is shrinking—we're losing competitiveness and jobs." He also noted that Corma has repeatedly alerted authorities about the situation, emphasizing security. "It's urgent for the Government and lawmakers to listen. We need strong policies for our sector—security, regained access to lands under territorial surveillance, and control over the frequency of devastating fires."

On security, Casagrande stressed its vital role in optimal field operations and advocated for new legislation to protect lands. "We need an incentive law for small and medium landowners affected by fires to replant and recover their lands. Ideally, a robust burning law—otherwise, supply and competitiveness issues will only worsen."

Reuse of Facilities

El Colorado Sawmill is a large plant with imposing infrastructure that will soon go unused.

Curanilahue Mayor Alejandra Burgos, as reported by Diario Concepción on May 14, expressed concern about the facility's future and confirmed that potential uses for the site are already being considered.

"We've proposed repurposing their unused infrastructure for community reuse. We're about to launch the Decontamination Plan, and this plant has large dryers—massive chambers that could enable entrepreneurs, possibly even current workers, to generate economic activity," the mayor explained.

"The same applies to housing industrialization—this plant meets the minimum requirements for such production. Around 800 homes could be built locally, and the infrastructure would support it," she concluded.

Source:diarioconcepción.cl