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Union rejects offer; Fraser Papers Edmunston mill may close permanently
August 10, 2009 By Pulp & Paper Canada
A local newspaper reports that more than 200 unionized workers at Fraser Papers Inc.’s Edmundston mill will be…
A local newspaper reports that more than 200 unionized workers at Fraser Papers Inc.’s Edmundston mill will be laid off because the sulphite pulp operation will remain closed, the company’s chief executive Peter Gordon said Aug. 6 after the union voted to reject the company’s final contract offer.
According to the Telegraph-Journal, union members voted against a new four-year contract, which involved a 4% pay cut, with 54% rejecting the offer.
The company had said prior to the vote that it would have to permanently close the mill if the union rejected the offer.
However, there were reports on Aug. 10 that the union would hold a meeting and reconsider its vote. Fraser Papers, meanwhile, had planned to officially announce Aug. 10 that the company will not reopen the Edmundston sulphite operation and immediately lay off 150 unionized employees, to be followed by another 72 lay offs — including some managers — in the coming months, plant manager Robert Dufresne told the Telegraph-Journal Aug. 7.
Fraser Papers is currently under creditor protection.
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