Kruger to reassess viability of Corner Brook operation after vote doesn’t go their way
Results of the vote:
-Pension Plan for Unionized Employees:
-Active members (326): ……………177 objections ……….54.3%
-Retired members (617): …………. 31 objections …………. 5.0%
-Pension Plan for Non-Unionized Employees:
-Active members (78): ………………6 objections ………….7.7%
-Retired members (218): …………..7 objections …………..3.2%
Under Newfoundland and Labrador legislation, in order for the relief measures to be applied, they cannot be opposed by more than one-third of members in each group (active and retirees). Consequently, with 54.3% of active unionized employees opposing the proposal, the relief measures cannot be applied to the unionized employees’ pension plan.
Kruger now plans to reassess the viability of Corner Brook Pulp and Paper’s operations. The pension relief measures were a crucial element in the Kruger’s strategy for the mill to improve its competitiveness and secure its future.
Kruger said the Kruger Company has gone to extraordinary lengths to support its Corner Brook operation in a very challenging market afflicted by declining demand for newsprint, increasing energy costs and the negative effects of a strong Canadian currency on exports.
In addition to these challenges, the Corner Brook Mill has to contend with other Canadian paper mills that have competitive operating costs and benefit from the additional advantage of funding relief measures for their own pension plan deficits.
Kruger said is disappointed with this outcome, especially considering the countless efforts that were put in over the last few weeks to communicate with plan members to seek their support.
- Kruger asks for more time to repay underfunded pension plan
- Kruger denies hiding information about its pension formula
- Changes proposed for Kruger's pension plan
- Kruger gets green light from Corner Brook unionized employees to apply pension plan funding relief measures
- Job cuts coming to Corner Brook Pulp and Paper
- No job cuts made today in Corner Brook
- Kruger leaks its own internal memo to CBC
- Job cuts hitting Corner Brook Pulp & Paper today