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Wage cuts and cost-cutting on agenda for Corner Brook


June 26, 2012
By Pulp & Paper Canada

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Most of the unionized workers at Kruger’s Corner Brook pulp and paper mill in Newfoundland have agreed to a new contract with unspecified pay cuts in a bid to keep the mill operating while Kruger mulls its fate.

Most of the unionized workers at Kruger’s Corner Brook pulp and paper mill in Newfoundland have agreed to a new contract with unspecified pay cuts in a bid to keep the mill operating while Kruger mulls its fate.

“It’s a tough contract, but we are tough people, so we’ll manage,” said Gary Healey, a national representative with the Communications, Energy and Paperworkers Union (CEP), told CBC.ca. Four of the five CEP locals at the mill approved the collective agreement.

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According to the CBC.ca story on June 22, a local of the International Association of Machinists and Aerospace Workers also turned down the Kruger offier.

The new agreement takes effect immediately. It enables the company to have another vote on pension funding relief measures that were voted down earlier this year and to “continue its assessment of the mill’s viability,” Kruger said in a release.

The company has previously said the pension funding relief is essential to the mill’s competitiveness. The company expects the voting process to be completed by August 22.

In the meantime, Kruger has said it will continue its efforts to reduce the Mill’s operating costs by applying necessary cost-cutting measures.