Elk Falls Workers

Campbell River B.C.

Catalyst news release

September 18, 2009

Catalyst proposes Elk Falls mill restart plan to union locals

Richmond, BC – Catalyst Paper (TSX:CTL) today presented the two union locals representing workers at the Elk Falls paper mill with a plan that would result in the restart of production.  The company’s plan provides for the start up of at least two of the mill’s paper machines and a profit sharing system based on the company’s earnings, in return for changes to wages and benefits. Under the company’s plan, the average hourly wage rate would remain in excess of $26.00.

“Our business is in the grip of a deep cyclical downturn, coupled with demand shifts and structural changes. We have to make adjustments to the cost structure of each of our mills to give them the greatest opportunity for a successful operation long-term,” said Richard Garneau, president and chief executive officer.

“We would rather work through the details of the issues facing the Elk Falls mill together with the union locals, but they declined that opportunity and asked the company for a plan,” he said.  “We recognize our plan proposes changes to the status quo at the mill but believe it reflects the need to adapt to the lower-cost demands of our new, smaller, highly competitive market,” he added.

The Elk Falls mill was indefinitely idled in early February with resulting layoffs affecting approximately 400 hourly and staff employees. Elk Falls hourly employees are represented by Communications, Energy and Paperworkers Union of Canada (CEP) locals 630 and 1123.

Catalyst Paper manufactures diverse specialty printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With six mills strategically located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 2.5 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and its common shares trade on the Toronto Stock Exchange under the symbol CTL. Catalyst is listed on the Jantzi Social Index® and is also ranked by Corporate Knights as one of the 50 Best Corporate Citizens in Canada.

– 30 –

For more information contact:
Lyn Brown
Vice President, Corporate Relations
(604) 247-4713

September 19, 2009 - Posted by | - $80 Ton Updates

3 Comments »

  1. Tune in Wednesday November 4th for the 3rd quarter report at 8 a.m.

    http://www.catalystpaper.com/investors/events

    Comment by CEP member in good standing | November 2, 2009 | Reply

  2. They sure want a lot from us. Well they had a lot. Any company that gives out millions to the guys that are working for them to make these proposal are being highly paid. They should think twice if they think that elk falls is going jump. When they can afford one man millions to talk to theses employees. Maybe get rid of the middle guy and not the white collar or employees and you would save a lot more than these other guys who think they say jump and we say how high. I dont know what coffee there drinking but I want some of it.

    Comment by norm | September 25, 2009 | Reply

  3. MMMMMMMMMM Let me get this straight.Take credit for an industry pension, Thumb your nose at the communities you do business in and don’t pay your taxes and treat your employees with utter contempt and that is how you become a good corporate citizen in Canada.Corporate Knights magazine you just lost all your credibility. PS Lyn, you lost yours a long time ago

    Comment by Gord Hartley | September 23, 2009 | Reply


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