Kruger looking at 'viability' of Corner Brook mill
Natural resources minister fears for future of operation
The owner of a newsprint mill in western Newfoundland said Friday it was reviewing whether it could keep Corner Brook Pulp and Paper running, after unionized workers turned down a pension restructuring proposal.
In a statement, Kruger senior vice-president Jean Majeau said the company was "disappointed with this outcome, especially considering the countless efforts that were put in over the last few weeks to communicate with plan members to seek their support."
Unionized workers voted against a plan that would have allowed Kruger 10 years, instead of five, to restructure liabilities in its pension plans.
Although retired union members voted in favour of the plan — as did both active and retired non-unionized employees — the lack of support from the unionized workforce has triggered the decision.
Kruger said Newfoundland and Labrador law requires support from at least two thirds of the members of each of the four voting groups.
Kruger said 326 of the active unionized workforce, or 54.3 per cent, voted against the pension plan.
Kruger told CBC News that none of its executives would comment Friday on the statement.
Natural Resources Minister Jerome Kennedy said the future of the mill now hangs in the balance.
"I’m not very confident today," Kennedy told reporters in St. John’s. "This is a very grave situation."
The minister said the government will not get involved in the pension dispute.
"This is now between the union and the company," Kennedy said. "The company has indicated in strong language that they will assess over the weekend the continued viability of the mill. So we will have to wait to see what Kruger does."
He called on the union and company to get together to come up with a long-term sustainability plan for the Corner Brook mill.
Local leaders of the Communications, Energy and Paperworkers union lashed out last week at Kruger, decrying what they called a lack of transparency in terms of the company's plans.
Later, however, the national leadership of the CEP recommended that its members accept the proposal, calling it "the lesser of any of the evils."