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Ferndale had always set its clock by the whistle of the Nordale Paper Mill. For close to sixty years the mill had been the beating heart of this Quebec town of roughly 12,000, so the notice that went up in September landed like a thunderclap. Its owners were installing automated pulping and finishing lines, and half the payroll had to go, dropping the headcount from 840 workers to 420. Every one of the 420 whose shifts were vanishing received the same letter, which set out three ways forward: move to another mill, retire early, or take a single cash settlement. Roughly 100 said yes to a transfer and agreed to relocate to the firm's larger mill downriver. A further 150, most of them long-serving hands with the years behind them to qualify, are now tilting toward early retirement. For everyone else the company laid a cheque on the table worth about seven months' pay, an offer that loses much of its shine the moment people learn the taxman will reclaim nearly 40 percent of it. The rest are still weighing their options. Fearful of what lies ahead for the town, the council has thrown open a job-help centre.

Hélène Gagnon pulls no punches. She and her husband had been banking on a good five more years at the mill, and, sure that their jobs were rock solid, had let their spending run rather than setting anything by. Pulling up stakes is off the table, she insists: rents near the other mill run far higher, and a move would only drag her family back under a mountain of debt. "Three choices, they call it," she scoffs, "but at our age not a single one of them adds up."

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1Workers who leave the company may receive a payment known as a
Aone-time payout
Btransfer
Cearly pension
Djob-support grant
2Although the newcomers come from similar backgrounds, they differ mainly in their
Awages
Boutlooks
Csavings
Dtrades
3Dmitri Volkov's reason for staying is that
Athe mill may soon reopen.
Brelocating would leave him in debt.
Cliving there costs almost nothing.
Dthe pension is unusually generous.
4Some workers chose a transfer, meaning they
Astarted a garden elsewhere.
Bmoved to the company's larger mill.
Cno longer felt at home in the town.
Dearned higher wages in the city.
5Dmitri Volkov believes that
Ahe is glad to stay and settle in for good.
Bthe pension alone will fund a rich retirement.
Cpeople must go where the work is.
Dnewcomers struggle to find work.
6The workers who left town were mainly seeking
Aclose to 40 percent of their pay
Bongoing pension payments
Chelp with their moving costs
Dfactory work in the city
7People who take the payout must still
Akeep paying into their pension
Bcover their own moving costs
Chand close to 40 percent to the government
Ddraw down their savings
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