Elk Falls Workers

Campbell River B.C.

Catalyst Restructure plan fails… Sale process to begin.

99.5% of Catalyst Paper‘s secured creditors voted in favour of the company’s restructuring plan. Only 51% of the unsecured creditors voted in favour. Both classes of creditors needed to pass the plan by 66 2/3% in order for it to pass. (the press has been reporting that 64% of the unsecured creditors voted in favour, but the $100 million claim made by the union is being disputed, they rolled that amount in to see if the plan would pass with the disputed votes, but it was still short by 3%)

Since the amended plan of arrangement was not approved at the meetings, Catalyst Paper is now required to commence a sales process.

So whats next for retirees…. Well right now there won’t be any change until we see who the successful bidder is. If the secured creditors “Stalking Horse” bid is successful, then there won’t be any impact, but if other players become involved that could all go out the window. keep your fingers crossed that no-one else wants to bid.

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May 24, 2012 Posted by | General | 5 Comments

Arbitration Update…

We ran a number of arbitrations last November, and because of Catalysts current financial difficulties the decision on some was delayed.
Today (May 3) we received the arbitrators decision to the question – whether Employees who were 55 or older when severed under the permanent closure language were eligible to receive retiree benefits and pop-up bridging if they retired.
The Company took the position that employees had to make a choice. If they wanted retiree health benefits and pop-up bridging they had to sever their employment and retire, or they could take their severance, but then they wouldn’t qualify for the retiree benefits and pop-up bridge. It was either one or the other, not both.

Arbitrator Hall has ruled that the Company was incorrect in the application, and that people could sever and get the retiree benefits from the collective agreement.

This award doesn’t apply to a large number of people, but for those that it does apply to, it has huge consequences.

For a PDF copy of the award Click Here

May 3, 2012 Posted by | General | 2 Comments