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Cascades closing Norampac Trenton mill after union rejects offer

Significant losses and the rejection by unionized workers of a new collective agreement have led Cascades to announce the closure of the Norampac containerboard mill located in Trenton, Ontario. The announcement was made only days after…

Significant losses and the rejection by unionized workers of a new collective agreement have led Cascades to announce the closure of the Norampac containerboard mill located in Trenton, Ontario. The announcement was made only days after employees rejected the company’s final contract offer.

Nearly 130 employees will be affected by the closure.

Negotiations for the renewal of the collective agreement have been ongoing since May of last year between Norampac’s management and the Communications, Energy and Papermakers Union of Canada (CEP).

Dave Moffat, Ontario region vice-president for CEP, told the local Trentonian newspaper, “They wanted significant concessions in a new collective agreement. Those concessions are too deep to accept.”

Marc-André Dépin, president and CEO at Norampac, said: “We are deeply disappointed that the Norampac Trenton employees have turned down a positive and reasonable offer.

“Despite substantial investments made by Cascades/Norampac to help increase its profitability, the Trenton mill has incurred significant losses over the years. These losses, combined with unacceptable labour relations, have left us with no other choice but to close the mill,” adds Dépin.

The Norampac Trenton facility produces corrugating medium and has an annual production capacity of 150,000 tonnes. Cascades estimates that its closure will result in  financial losses for the local forest industry, estimated at $9.5 million.

The Trentonian reports there had been continuous labour strife at the mill in recent years, leading to rumours of closure.

Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. The Corporation employs more than 12,000 men and women, who work in more than 100 units located in North America and Europe.