Kruger has begun implementing its "rightsizing" plan to bring Corner Brook Pulp and Paper to a more competitive position. On Feb. 2, the company met with union executives to announce the immediate layoff of nine employees, as well as a gradual reduction of 33 additional positions and four vacancies that will not be filled.
This announcement is the first step in an ongoing process to reduce labour costs.
Kruger said it will reassess its employee complement in the coming weeks to make further labor force adjustments. According to the company, in order for the mill to survive and be competitive, it must rank within the first quartile of the industry. To achieve this goal, it must reduce its workforce accordingly.
Kruger Inc. is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibres, green and renewable energy, and wines and spirits.