Mill union looking for second chance with Kruger

The union representing workers at a troubled newsprint mill in western Newfoundland says it is hoping to arrange a second vote on pension reform that might keep Corner Brook Pulp and Paper running.

Montreal-based Kruger Inc. said Friday it was assessing the viability of the Corner Brook mill after unionized workers narrowly turned down a pension restructuring proposal that the company says is needed to keep the mill competitive.

Gary Healey, a national representative of the Communications, Energy and Paperworkers union, said the workers' rejection of the pension offer does not have to spell the end of the mill, and added that he believes a deal can still be salvaged that will address worker concerns about pension relief.

"I see no reason why that can't be accomplished," Healey said.

"I have spoken to Kruger officials. We believe, both sides believe, that there's still a path forward and we're going to explore the options and see where it leads us."

Kruger has not yet commented on the rejection, other than a written statement on Friday that raised doubts about whether the mill is viable enough to continue operation. Natural Resources Minister Jerome Kennedy later said he is worried about "a very grave situation" at the mill.

Non-union workers and retired employees all approved Kruger's request for pension relief, which would give it 10 years instead of five years to cover liabilities in its pension plans.

Local union officials spoke out about Kruger in the days before the vote, complaining that the company had not been transparent in its dealings.

But Healey said there is no point in casting blame over how unionized workers voted.

"I don't know if trying to assign responsibility would be fair," he said. "Everybody that votes has a right to vote how they feel is appropriate."

Following the comments by local union officials, national CEP officers encouraged members to support the pension deal, labelling it the "lesser of the evils." Nonetheless, the proposal failed to muster enough support from the rank and file.

Healey added that the union shares concerns about the mill's future, although he said he is optimistic about striking a new deal through a second vote that would address employee concerns about what the company wants.

"I'm very concerned about the future of the mill. [But] I don't think there are too many roads that don't have a few bumps ... I see no reason why a second vote couldn’t deliver the result that's needed."

Industry anxious about mill future

Meanwhile, the developments at Corner Brook Pulp and Paper are being watched closely throughout the forest industry, which has been dealt several blows over the last decade with the closure of AbitibiBowater mills in Stephenville and Grand Falls-Windsor.

'If Corner Brook Pulp and Paper closes tomorrow, our industry is cooked' —John Baird, Lumber Producers' Association

"If Corner Brook Pulp and Paper closes tomorrow, our industry is cooked," said John Baird, who speaks for the Newfoundland and Labrador Lumber Producers Association.

"They purchase a huge volume of wood from our industry. That's one of the reasons we need to start looking at alternative uses for that waste wood."

Baird said last week's revelations that a new company is looking at alternative uses for the dormant mill in Grand Falls-Windsor is encouraging. A company is considering producing wood pellets that could be used as a heating source.