Contract Ratified at Quesnel
August 15, 2008

Vancouver, B.C. – The 250 members of CEP Local 1115, who work at the West Fraser pulp mill in Quesnel, BC, have ratified a new four-year Labour Agreement expiring in 2012 which provides for improvements in wages, pension benefits, severance, and job security benefits.

“We are pleased that our members in Quesnel have ratified this agreement,” states Don Boucher, Administrative Vice President.  “We are now taking the pattern agreement to West Fraser in Kitimat.” 

The new pattern agreement, originally set with Canfor, provides for a 2% wage increase in the first year, 2.5% in the second and third year and 3% in the fourth year; a “pop-up” clause for pension bridging which allows workers to retire after age 55 and access the bridge benefit at age 60; significant severance benefit increases for workers after one year of service; an increase in the maximum severance benefits payable and improvements for workers in the areas of Short Term and Long Term Disability benefits.

Also included in the new agreement are provisions for wage adjustments for tradespersons and steam engineers in recognition of the skill shortage as well as additional training periods in the times where workers may face displacement from their workplace due to operations downtime.

The Communications, Energy and Paperworkers Union of Canada represents 150,000 members from coast to coast including 40,000 members in the pulp and paper industry.

Kraft Mill CLosure-Elk Falls pulp mill to close permanently in November
July 7, 2008

We are announcing today the permanent closure of Elk Falls pulp and containerboard operations. The closure is expected to take effect on November 30, 2008 and will impact approximately 440 hourly and salaried employees.
I know the division and everyone in our company has worked very hard to reduce costs and to find alternatives to a permanent shut. Lack of sawdust affects only our Elk Falls sawdust pulp production. And, it has become clear that with permanent sawmill closures and other uses diverting available sawdust supply, the Elk Falls pulp mill cannot be saved.
We know this decision is significant for employees and their families in this community. We have discussed the severe challenges facing our industry with employees many times and we appreciate the effort people made to overcome these difficulties at this mill. Unfortunately, the pulp mill remains unprofitable and we hope you will understand that the mill and its jobs cannot be sustained in this situation.
We also hope the notice period will give people sufficient time to plan for the future, and we will take steps to help you access assistance through the mill adjustment committee, Community Development Trust Fund and other community agencies in the weeks ahead.
Today’s announcement highlights how important it is that employees, unions, companies and communities work together to overcome the economic barriers facing our sector.
In the weeks ahead, we will do our best to keep you well-informed and we ask that you take special care to do your work safely and that you watch out for your coworkers during these trying times.
Richard Garneau
President and CEO

PaperBreak
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