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Unifor urges N.S. to assist with financing Northern Pulp worker severance

Unifor has released a statement urging the Nova Scotia government to ensure Northern Pulp has debtor-in-possession (DIP) financing after the mill informed the union it would not be able to meet the next severance payment for workers without it.

Northern Pulp notified the union on Jul. 7 that it would not be able to make the second planned severance payment to workers scheduled for the end of July if the company and province could not come to an agreement to allow for third-party financing.

The company advised members that government had requested more time to review financing terms prior to the Jul. 3 court date, pushing a decision back to a hearing on Jul. 24.

“We expect the parties to come to a financial agreement that allows our members to be paid and all responsible maintenance and cleanup at the mill site to continue during shut down,” says Linda MacNeil, Unifor’s Atlantic regional director.

MacNeil says union members at Northern Pulp received $650 from the province’s $63.5-million Forestry Transition Fund.