Marathon Pulp employees now know what wage cuts their company had in mind - and they are as deep as they had feared.

Proposed cuts include:

• 12.5% wage cut
• reduction or elimination of a variety of benefits including vacation time, group insurance and extra compensation for working night shifts
• work week for day workers to be reduced by four hours every second week
• shift differential will no longer be paid under any circumstances
• group insurance family rate deductible doubled to $100 per family
• vacation time for all employees reduced by one week

Wages and benefits will revert to previous rates only if the mill's average monthly earnings before taxes, interest and other expenses exceed $1.25 million for six consecutive months.

One worker said earlier that wage reductions would effectively reduce his pay cheques by $275.

Marathon Pulp, jointly owned by Quebec forestry companies Tembec and Kruger, is located in northern Ontario.

Source:
Deep cuts sought (The Chronicle Journal)