5 of the 6 union locals representing Catalyst Paper‘s work force at its Crofton, Powell River, and Port Alberni paper mills have voted in favour of a new collective agreement.

One local, PPWC Local 2 at the Crofton mill, voted against the tentative agreement on Saturday.

“We started discussions with all parties early knowing that difficult choices lay ahead and that decisions could not be taken lightly to successfully close a very complicated but vital restructuring process,” said Kevin J. Clarke, President and CEO. “With five union locals ratifying the new labour agreement – a commitment to our company that is very much appreciated – it is disappointing that we could not gain support of the sixth union local.

“Despite this setback, it’s important to recognize that a majority of employees are making daily contributions that are helping our company build a bridge to the future. A goal we all share is to put our company on stronger financial footing which helps keep machines running, helps save local jobs and supports mill communities – not just for weeks or months but for years,” he said.

The company previously announced that it has reached an agreement with certain noteholders for their support of a recapitalization through a plan of arrangement under the Canada Business Corporations Act. The agreement is subject to termination if a new labour agreement with all union locals at the company’s Canadian mills has not been ratified by January 31, 2012.

Source: Catalyst Paper