Elk Falls Workers

Campbell River B.C.

Paper Excellence Still Hunting for Pulpmills…

CEP Local 1120 and Paper Excellence Reach Agreement

We are pleased to inform you that we have reached an agreement with the new owners of the pulp mill in Prince Albert, Saskatchewan. After a respectful and forward looking set of negotiations between CEP Local 1120 and Paper Excellence the members have voted 97% in favour of a new agreement.

This is a critical next step in the process of potentially reopening the pulp operations that were shut down 5 years ago. The new owners, Paper Excellence, have yet to conclude the final deal with both the Saskatchewan government and Domtar. However, we are very optimistic that this will successfully be concluded by the end of November. If so, it is the intention of Paper Excellence to have the restarted operation selling product by the fall of 2011.

The purchase of the shuttered mill came together at literally the final hour as Domtar had let contracts for the completion of the demolition of the last of the pulp equipment. It is our understanding that Domtar still has the final demolition slated to begin in the first week of December. Although much of the mill has already been dismantled Paper Excellence believes that with the investment of $100 million in equipment replacement and upgrading they will be able to produce pulp with an operating cost of $450 a tonne or less. When the mill closed in late 2005 it produced pulp at approximately $525 a tonne.

The members will see wages that will start at about 4% below the pulp and paper pattern in Western Canada and without having banked time provisions or supplementary vacations. With the exception of the above mentioned items the collective agreement will have equal or superior benefits to what our members enjoyed prior to closure. In an effort to recruit skilled labour back to the operations members will see their seniority honoured for recall and vacation entitlement even though all members received severance pay.

The new agreement will be for a 5 year term with an annual wage increase of 2% with a bonus system put in place that would kick in if the operations meets or beats the targeted production costs.

November 17, 2010 - Posted by | General

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: