Kruger will implement a rationalization plan for its Corner Brook Pulp and Paper mill in Newfoundland, with the aim of reducing labour costs, which it says "are significantly higher than the Canadian industry average."
The company goes on to say in a press release that the plan will begin in the first quarter of 2012, and will cover all sectors of the mill.
An internal Kruger memo released by CBC News notes that labour costs and staffing levels are higher at Corner Brook than at comparable mills. The memo says the workforce must be reduced accordingly.
According to CBC News on Jan. 24, Kruger officials told union representatives that the company is working on a cost-cutting plan to make the Corner Brook paper mill more profitable.
The mill has two paper machines with annual capacity of 250,000 tonnes, with an associated TMP facility.