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B.C. government aids Catalyst Paper workers ahead of U.S. tariffs

July 31, 2018  By B.C. Office of the Premier

July 31, 2018 – The British Columbia government has taken action to protect the pension benefits and jobs of almost 1,000 retirees and 1,500 workers of Catalyst Paper.

Effective immediately, the Province has amended the Pension Benefits Standards Regulation to modify the relief granted in 2012 by the previous government. That relief gave Catalyst Paper a longer period to pay off its significant 2012 pension funding shortfall. This also allowed Catalyst to focus on its operations, while still securing pension benefits for its salaried retirees and workers.

“In the face of punitive U.S. trade action, our job is to make sure the interests of B.C. workers and retirees are protected,” said Premier John Horgan. “We are working hard to address the impacts of this threat and ensure the long-term viability of Catalyst’s B.C. operations, but should threatened tariffs force Catalyst Paper to take desperate actions to protect its own interests, our government’s action will protect retirees and workers.”

The action means pension entitlements for Catalyst salaried retirees and workers would be more secure should the company owners, in the face of tariffs, be forced to sell or close one or more of its three pulp and paper mills in Port Alberni, Crofton and Powell River. This would be accomplished by insisting the company fund the remainder of the 2012 outstanding pension obligation immediately. Earlier this month, the American owners of Catalyst Paper liquidated their U.S.-based assets and operations in a US$175-millon deal.


U.S.-Canada trade relations have deteriorated in recent months and B.C. trade officials now anticipate punitive U.S. tariffs, possibly as high as 28.5%, on Catalyst’s paper products, as early as August 2018.

“We cannot stand by and allow almost 1,000 Catalyst retirees – with an average company pension already less than $20,000 per year – to be last in line should U.S. tariffs push Catalyst into bankruptcy or dissolution,” said Horgan.

Catalyst Paper’s combined operations in B.C. generate over $2 billion in annual economic activity and are key contributors to the local economies of Vancouver Island, Powell River and Metro Vancouver.

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