It's a town that has bounced back every time its major employers have closed shop.
But for Smiths Falls, Ont., population 9,200, the loss of its two biggest employers over the next two years may be the greatest challenge it has yet faced, with the impending shutdown of the Hershey Chocolate plant, employing 500 workers, followed by the closing of the provincially run Rideau Regional Centre, with a job loss of 830.
Residents and provincial Opposition members are accusing the McGuinty government of adding to the town's woes by refusing to back down on closing the regional centre for the developmentally disabled, scheduled for 2009.
The shutdowns, including those of other smaller industries, affect nearly 1,500 workers in all, representing the worst job losses to hit the Eastern Ontario town since Canadian Pacific Railway phased out its Smiths Falls marshalling yards more than half a century ago.
For Barry and Dora Rogers, Hershey's planned closing of its 44-year-old factory is catastrophic. With five school-age children, the couple bought their first home two years ago and already are on seasonal layoff. They're uncertain whether to look for other work or to wait for word from Hershey about whether they will be called back temporarily.
"You've got to just ride it out," Mr. Rogers said.
Meanwhile, Mayor Dennis Staples and town councillors last week received the final word they anticipated from senior Hershey executives, who arrived from their Pennsylvania head office for an Ottawa meeting.
"They reinforced with us that [they are]going to go forward to close the Smiths Falls plant," Mr. Staples said in an interview. With an estimated annual payroll of $25-million, the plant now operates at 20-per-cent capacity, due in part to heavy competition and the high value of the Canadian dollar, he said.
The move has also been prompted by much lower labour costs at Hershey's new plant in Monterey, Mexico.
The plant shutdown will take place over two years, although Hershey may continue operating its popular Chocolate Store, now drawing nearly 500,000 tourists yearly to Smiths Falls, which promotes itself as the "Chocolate Capital of Canada." Hershey may also continue involvement in community activities, such as the annual Hershey Hockey Tournament and the town's Chocolate Railway Festival, Mr. Staples said.
Still, said Dan Cyr, owner of Rob Roy's Pub, "I don't think people realize the trickle-down effect the Hershey closing is going to have." The town can put more emphasis on its location on the Rideau Canal system, celebrating its 175th anniversary this year, he said. "I think we'll have another great summer and then we'll feel the impact."
"As merchants, we just have to band together," Cy Wells of Smiths Shoe Store said. "It's important we support one another."
Lisa Ritskes of the local Coldwell Banker real-estate agency says people should go to the bank to discuss their options. "The banks are offering longer amortizations and smaller payments . . . they're doing all kinds of things to help. What we need to not see is everybody freak out."
David Lawrence, president of the town's chamber of commerce, agrees Smiths Falls has to again "reinvent itself." Less than a hour's drive from Ottawa, once current highway improvements are completed, Smiths Falls has the chance to become an attractive bedroom community, he said. The plant closing is part of production changes being made across Hershey's entire North American network, not just Smiths Falls, he pointed out.
In the provincial Legislature last week, NDP Leader Howard Hampton called on Premier Dalton McGuinty to justify the Liberal government's decision to close the Rideau Regional Centre, with an annual payroll of $33.5-million.
"The people of Smiths Falls are worried that the closing of the Hershey plant will destroy 500 good jobs," Mr. Hampton said. "They're also worried that your government's decision to close the Rideau Regional Centre will make the situation worse."
Mr. McGuinty replied, "We will continue to work with the community to see how we might assist with specific kinds of proposals."
Nearly 200 e-mail inquiries about alternative uses of the Hershey plant have reached his office since February, Mr. Staples said
"A small number of those e-mails are worth pursuing, and we plan to do that in conjunction with the Ministry of Economic Development and Trade," he added. "When one door closes, another opens -- that's been the history of the town."
Special to The Globe and Mail