Catalyst Reaches 5-Year Labor Agreement with Unions
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Catalyst Paper, Richmond, B.C., Canada, reports that it has reached new labor agreements with unions representing more than 1,000 paper and pulp workers at the company's Crofton, Port Alberni, and Powell River mills.The new contracts will go into effect at the expiry of the current contract on April 30.
"Approval of the new labor agreements lets everyone know that the people who make up Catalyst are taking the actions necessary to save jobs and ensure we have a viable and competitive business for the future," said Kevin J. Clarke, president and CEO. "We appreciate there is still an enormous amount of work to do to complete the restructuring plan that will enable the company to exit creditor protection on solid footing going forward."
The agreements, effective from May 1, 2012, to April 30, 2017, include a 10% reduction in hourly rates along with various adjustments to vacation, health benefits, and work rules necessary to provide Catalyst with a competitive labor cost structure. The agreements also maintain hourly retiree health benefits. Annual savings in the range of $18 to $20 million are expected.
The Communications, Energy, and Paperworkers Union of Canada (CEP) locals 1, 76, 592, 686, and 1132 represent 700 employees at the three mills; the Pulp, Paper and Woodworkers Union of Canada (PPWC) local 2 represents approximately 380 employees at the Crofton pulp mill.
Catalyst Paper produces specialty mechanical printing papers, newsprint, and pulp, with four mills located in British Columbia and Arizona, The company has a combined annual production capacity of 1.8 million metric tons.
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