Corner Brook mill pension shortfall subject of talks

Past and present workers got details Friday of the multi-million unfunded liability in the pension plan at the paper mill in Corner Brook.

The pot of money that pays the pensions is short — according to some sources, as much as $60 million short.

The company owes the money, and wants 10 years to pay it back.

But workers and pensioners have to agree for that to happen.

If they don’t agree, and the company has to pay it back sooner, there are fears of what that could mean for the mill’s future.

The union isn't saying how its members should vote, but it sees what's at stake.

"In order for those payments to be made, of course, the mill has to continue to run," union president Bruce Randell said.

While the province won't put money into the pension plan, government officials say they are willing to help.

"We want a long-term sustainability plan which allows for the unions to maintain their membership, for the mill to remain open," Natural Resources Minister Jerome Kennedy said. "But also for the pensions to be funded, especially in relation to the retirees."

Kennedy and Finance Minister Tom Marshall, who represents a Corner Brook district, met with workers Friday.

There are more meetings to come before the workers and the pensioners will vote.

For the company to get 10 years to repay the pension plan, both groups have to say yes, by a two-thirds majority.