Newfoundland and Labrador may help with upgrades to Corner Brook Pulp and Paper
The province of Newfoundland and Labrador is indicating they are willing to support the Corner Brook Pulp and Paper mill – if all 6 union locals approve new collective agreements, and the mill’s pension plan issues are cleared up.
As it stands right now, 4 of the 6 locals have voted in favour of a new contract with mill owner Kruger. The 2 skilled trades unions have not yet agreed on a new contract with the employer.
The workers will be voting on the proposal to allow Kruger to have 10 years instead of 5 years to pay back the deficit to their pension plans before August 22.
If those issues are resolved, the province is willing to help, but no details will be released until after August 22.
Both Kruger, and the workers at the mill, have indicated there is a need for infrastructure updates. Kruger had an excellent track record of investing in the mill, but in recent years, the company’s restricted cash flow has prevented it from making improvements and upgrades.
Premier Kathy Dunderdale has confirmed that the province’s support will not come in the form of an operating subsidy.
Government may help with mill upgrades (The Western Star)
N.L. premier says support coming for paper mill if deal is reached (The Canadian Press)
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