AbitibiBowater is shutting down 2 paper machines at its Iroquois Falls, Ontario mill for 2 weeks.

Paper machine #1 and #8 will be shut down on March 21st and they are scheduled to be restarted on April 5th.

The downtime is necessary for the mill to balance its order books.

Catalyst Paper is saying that their "extraordinary cost reduction measures" allowed them to trim their company's losses for 2009, to just $4.4 million - down from a loss of $220 million in 2008.

"We bore the full brunt of a global recession and structural changes that are affecting demand for many of our products," Catalyst president Richard Garneau said in a news release Thursday. "The impacts were unrelenting in 2009.

"We overcame a very difficult year by taking extraordinary cost reduction measures and by adopting a leaner manufacturing operation better suited for a smaller paper market. We also took important steps to address liquidity and debt management."

Read more:
Catalyst Paper trims losses on 'extraordinary cost reduction measures' (The Vancouver Sun)

The Ontario NDP Party raised the issue of AbitibiBowater's desire to sell off its dams in Northern Ontario in the legislature today.

NDP members told the legislature that the dams provide cheap power, which helps to keep the mills in Thunder Bay, Fort Frances, and Iroquois Falls in operation.

Those same NDP members warned the legislature that if the government permits the sale it would put the jobs of 2,000 workers at risk.

Source:
AbitibiBowater’s dam sale questioned (TbNewsWatch)

AbitibiBowater is planning to indefinitely idle one of the two paper machines at its Thorold South facility in Ontario.

100 people will be laid off. The machine will be idled on April 12.

The decision was based on the decline in the North American newsprint market.

AbitibiBowater said it has also been affected by high prices for old newspapers and magazines that it recycles for paper.

At this time, the plant is undergoing a temporary shutdown that will continue until March 15th. Both paper machines will then run for 2 additional weeks, until April 12.

Source:
AbitibiBowater to lay off 100 workers in Thorold (The Standard)

United Steelworkers (USW) members employed by Canfor in 15 operations in the BC northern and southern interior regions have ratified a four-year collective agreement, retroactive to June 30, 2009.

Members in USW Locals 1-424, 1-427 and 1-405 voted in majority favour of the agreement that was reached on February 22, 2010.

The agreement provides union members with an unprecedented expansion of seniority retention and improved severance in the event of a partial or permanent plant closure.

The union's BC Interior Bargaining Committee will utilize the Canfor agreement to be a basic pattern agreement for negotiations with West Fraser and employer associations CONIFER (the Council on Northern Interior Forest Labour Relations) and the IFLRA (Interior Forest Labour Relations Association, which represent employers in the northern and southern interiors, respectively.

The Canfor-USW agreement provides wage increases of 2% in years 3 and 4, protects the members' Long Term Disability Plan and includes strong health and safety language. Improved life insurance and medical travel coverage are also part of the settlement as well as assistance for apprentices.

The agreement also includes an innovative employee investment model linked to a direct payback schedule and potential profit sharing.

The USW, Canada's largest industrial union, represents about 11,000 forest workers in the BC Interior.

Source: United Steelworkers

Catalyst Paper has announced that it resubmitted a proposal to the union that could allow for the restart of the Elk Falls paper mill at a labour cost, all in, of approximately $40 per hour.

This reflects current market realities and includes changes to wages and benefits similar to those already implemented with management and staff employees. The company also indicated that, to date, 63% of eligible hourly workers at the Elk Falls operation have elected the severance option arising from indefinite curtailment of the mill since February 2009.

"With a competitive cost structure, there could be a future for Elk Falls mill and to that end we presented employees with a proposal that could lead to the restart of two specialty paper machines at the mill," said Richard Garneau, president and chief executive officer. "Nonetheless, we also recognize that electing to take severance is a personal choice.

"We hope the remaining employees want and will be given the chance to return to work and to continue to live in the community. We appreciate the Campbell River Mayor has shown strong commitment to preserving jobs through an agreement in principle that would address Class 4 property tax sustainability. And, while there are no guarantees that we will be able to overcome fibre supply shortages or acquire the customer orders necessary to restart, we know the outcome for this mill and community if nothing is done," he added.

Hourly employees at Elk Falls are represented by Communications, Energy and Paperworkers Union of Canada (CEP) locals 630 and 1123. Approximately 225 hourly workers have taken this option with an average severance payout of $57,000 per employee.

Source: Catalyst Paper

Western Forest Products currently leases land from the Nanaimo Port Authority for its downtown mill. The mill has been closed for a year.

Talks are now underway that may see that downtown mill move to the site of the Harmac pulp mill that is located on 500 hectares of land at Duke Point. Then the mill could be set up as an employee-owned model similar to Harmac's.

The workers at the Western Forest Products mill are represented by the United Steelworkers, but the Harmac site is represented by the Pulp, Paper and Workers of Canada union.

Darrel Wong, president of the United Steelworkers Local 1-1937, which represents WFP's workers in Nanaimo, said there are a number of contentious issues that would have to be dealt with first, including union certification. He said that with all the issues involved there is only a "remote possibility" that the plan will move forward.

Arnold Bercov, president of the Pulp, Paper and Workers of Canada (PPWC), Local 8, which represents workers at Harmac, said the plan could see Western Forest Products supply the mill and remain a part of the management of the operation. Nanaimo Forest Products, who own Harmac, would supply the land for the mill and the workers would buy into the operation and become part owners.

If the project proceeds, the mill could also be a vital source of wood fibre for Harmac.

Bercov said the original plan called for moving Western Forest Products's closed Ladysmith mill (whose workers are represented by PPWC) to the Harmac site, but after discussions with WFP a decision was made to focus on WFP's downtown mill.

Read more:
Unions in talks to move Western Forest Products mill to Harmac site (Vancouver Sun)

Fraser Papers Inc. has announced that the specialty papers business, to emerge from creditor protection under the company's restructuring proposal, will be named "Twin Rivers Paper Company".

The new specialty papers business will consist of the integrated pulp, energy and paper operations in Edmundston, New Brunswick and Madawaska, Maine, as well as two lumber mills located in Plaster Rock and Juniper, New Brunswick. The new company name is reflective of the location of the pulp and paper operations at the confluence of the Madawaska and Saint John Rivers.

"The new name was generated from an employee suggestion process and reflects a number of key characteristics we think are appropriate for the company. These include pride in our northern location and community, combined with the natural attributes of sustainability and strength that we associate with these two rivers," said Jeff Dutton, President and COO of Fraser Papers.

The new name, Twin Rivers Paper Company, is being introduced to employees and customers but will not be used officially until the sale of the specialty papers business is completed, expected in early April, following final court approvals in both Canada and the United States.

Source: Fraser Papers

St. Marys Paper Corp. plans to curtail production of specialty Supercalendered paper grades on paper machine #5 at its groundwood pulp and paper mill in Sault Ste. Marie, Ontario for an indefinite period starting March 12, 2010.

Combined with the December 2009 shutdown of #3 and #4 paper machines, 300 direct employees at the St. Marys Paper Corp. operations will be laid-off indefinitely.

The company will be managing the curtailment process so that paper production can continue when market and business conditions warrant.

St. Marys has fought against difficult business conditions over the last several years including historically low product prices, a high Canadian dollar vs. US currency, recent increases in the mill’s key input costs, and the indirect subsidy of U.S. competitors as a result of the “Alternative Fuel Tax Credit Program” which was in place through calendar year 2009 in the US.

The company will take this opportunity to consider the recommendations contained in an updated marketing and sales study, to determine what changes are needed to its operational plan to ensure it is cost competitive, and to recalibrate its business plan to address the realities of the paper industry.

“Our goal continues to be to transition the business from simply a paper production facility to a paper production, green energy and bio-economy business. Significant money, effort and human energy have been invested into this vision which remains the medium and long term strategy for the business,” said Gord Acton, president of St. Marys.

The company will continue to operate its sales and customer service functions to support its customers through this curtailment period.

St. Marys Paper Corp. is a privately owned groundwood pulp and Supercalendered paper mill in Sault Ste. Marie, Ontario.

The company produces quality paper grades used mainly by magazine publishers and large retailing companies for high quality advertising inserts, flyers and catalogues.

For more information, visit the St. Marys Paper website at http://www.stmarys-paper.com/

CEP members at Fraser Papers' Edmundston mill have voted 69.3% to ratify an agreement to change the pension plan and complete the conditions required for the company to restructure and emerge from bankruptcy protection.

"This was a very difficult decision for our members but it was the least of two evils," said CEP Atlantic Vice-President Ervan Cronk, following ratification meetings held over the weekend.

"Bargaining into the wee hours of the morning, we were able to lessen the blow on pensioners and active employees," said Cronk. "The result is that they will realize about 10% more of what they would otherwise have been entitled to.

"But we have made it very clear to the company that we will be back to fight another day to restore pensions.

"Goverments must not be allowed to sit back on their heels while companies use bankruptcy protection laws to shed millions of dollars in debt on the backs of pensioners."

"We have turned a page at Fraser Papers but we will continue the fight for justice," added CEP National President Dave Coles.

"The struggle at Fraser Papers revealed everything that is wrong with a system that allows companies like Brookfield Asset Management to make pensioners and workers the victims of restructuring."

The agreement at Fraser Papers will see an 8-year extension of Fraser's insolvent pension plan. This will require legislative changes by the New Brunswick government.

Source: CEP

After arduous negotiations, the Communications, Energy and Paperworkers Union of Canada (CEP) has agreed to a tentative agreement with AbitibiBowater to renew the collective agreement. This deal fulfills an essential condition towards the emergence of the company from the current restructuring process.

"We have the best possible agreement, given the precarious financial condition of the company", says CEP President Dave Coles. "We are proud to have been able to protect retirees and to have created a new stable pension plan for the active workers. Our members will no longer have to fear the shadow of an insolvency of their plan".

The company took off the table its proposal to terminate the pension plans, which would have reduced pension benefits by an average of 25%. Provincial government will now bear the responsibility to adopt the appropriate regulatory changes to allow the company to financially fix the pension plans.

However, the union is furious at the total lack of help shown by the Conservative government to the forestry workers. "It is our members who had to make sacrifices to save the company from bankruptcy", says Dave Coles. "The last federal budget fully demonstrated the contempt of this government for forestry workers. It is now clear for our workers, our retirees and our communities that the Conservatives have abandoned them".

This agreement covers about 4,500 workers and 8,000 retirees from 23 AbitibiBowater locals at 12 pulp and paper mills in Eastern Canada.

A leak was discovered in the recovery boiler of the Prince George Pulp and Paper mill recently that has forced the company to immediately begin their maintenance downtime that was originally scheduled to begin in April.

After the leak was detected, the mill used their emergency shutdown procedure to safely take the pressurized boiler out of commission, shifting the mill into maintenance mode.

No jobs are expected to be impacted during the estimated 20 days of the maintenance period.

The cause of the leak is not yet known.

Source:
P.G. Pulp Recovery Boiler Down, Mill Moves into Maintenance Mode (Opinion 250 News)

"All political parties should vote to bring this government down now," says Communications, Energy and Paperworkers Union President Dave Coles in reaction to today's budget.

"Yet another budget, filled with rhetoric and platitudes, that does nothing for workers, families and communities in hundreds of forest-dependent communities," says the leader of Canada's largest forestry union.

"We saw the same show in last year's budget," says Coles. "In fact, in the past year, the Conservatives made many announcements about aid to the forest sector, yet we saw a record number of bankruptcies."

"Mr. Harper and Mr. Flaherty are simply continuing to milk the media for their own gain.

"Workers and families will see none of this money. And there is nothing for pensioners who are paying the price for the federal government's inaction, as companies facing bankruptcy seek to finance their debts with employee pension funds.

"CEP's repeated calls for the government to provide loan guarantees at commercial rates to help mills weather the recession, continue to be ignored."

Coles also noted that in past budgets, CEP called for a national strategy to help rejuvenate the forest sector through investment in new products and the creation of value-added jobs. Yesterday's Throne Speech made reference to this, but says Coles, "it's a case of too little, too late. Without loan guarantees to keep mills alive, who will produce these new products?"

CEP represents 150,000 Canadian workers in several key parts of the economy, including more than 55,000 forest workers. There are 300,000 direct and indirect jobs in the forest sector and over 300 forest- dependent communities in Canada.

Source: CEP

Western Forest Products has posted a net quarterly loss of $3.1 million for its fourth quarter of 2009, on sales of $139.3 million.

Over the entire year of 2009, Western Forest Products posted a net loss of 75.3 million on sales of $580.5 million.

Western Forest Products said their operating results of 2009 were significantly impacted by a severe global recession, weak product demand, and the strengthening of the Canadian dollar relative to the US dollar.

Western Forest Products said their management has taken significant action to improve the financial results of the company by curtailing production to reduce inventory levels, downsizing staff, and reducing overall costs.

As a result of these actions, and coupled with slightly improving market conditions, Western Forest Products's EBITDA improved to negative $2.9 million over the last six months of 2009 compared to negative $31.9 million over the first six months of 2009.

2009 fourth quarter EBITDA of $2.3 million represents the first positive EBITDA quarter since the second quarter of 2007.

Western Forest Products Annual Report for 2009 containing discussion and analysis for the fourth quarter and full year as well as the Annual Information Form are available on SEDAR and the company's website at www.westernforest.com.

Northern Pulp in Nova Scotia has decided to invest $5 million in new equipment that reduce their pulp mill smell from impacting the tourism operators in the town of Pictou.

The new equipment will capture the sulphur gas component of emissions, and incinerate it.

Company spokesman, Don Breen, believes the investment will cut the smell by about 70% within 2 years.

Tourism operators in Pictou are ecstatic. Mike Emmett, proprietor of the Braeside Inn, said pulp mill emissions have a "tremendous effect" on his business. He said about 10 times a year, when the wind is from the south, the emissions of the mill hit his Inn full on, and have caused guests to cancel their stay and leave.

The mayor of Pictou, Joe Hawes, said the pulp mill's smell has a negative effect on property values and real estate sales as well as the tourist industry, and is probably not good for people’s health.

Others are raising concerns that the water by the mill, Boat Harbour, has yet to be cleaned up.

The Pictou Landing First Nation had been meeting regularly with representatives from Northern Pulp and the Nova Scotia provincial government, to find a way to clean up and close the mill's effluent treatment facility at Boat Harbour. They were disappointed Northern Pulp did not announce an investment into the cleanup of the water.

Source:
Pulp mill to cut sulphur odour - $5-million plan not soon enough for tourism operators in Pictou area (Chronicle Herald)