FOR IMMEDIATE RELEASE: March 19, 1998
Laid-off workers prepare to vote on controversial severance deal
EDMONTON -- Employees of a magazine distribution company that recently announced massive lay-offs at its Edmonton operation will gather in a city hotel this afternoon to vote on a severance offer from management. The employees, members of the Communications, Energy, Paperworkers Union (CEP) Local 1118, will either vote to accept or reject the offer from their employer, the News Group (formerly know as Provincial News). Earlier this month, the News Group announced plans to lay-off 52 of the 70 people working in its Edmonton distribution facility. The work that used to be done in Edmonton will soon be contracted-out to a low-wage, non-union firm in Innisfail. Since the lay-off announcement, the union has been trying to negotiate a severance package that "recognizes and shows respect for all the hard work that these employees have done for the company over the years," says local union president Rick Klimchuk. "Most of the people who have lost their jobs are women -- and most have been with the company for 14 or 15 years. They deserve respect, but so far all they've received from the company is shoddy treatment." The union has been seeking a severance package that would provide each laid-off worker with two weeks of pay for each year worked. But, Klimchuk says the company offer -- the one that members will vote on this afternoon -- falls short of this target. "It's another example of good jobs, with decent wages being replaced by bad jobs, with lousy wages," says Klimchuk. "It's particularly appalling when you consider that the News Group is part of the Pattison Group of companies. The owner, Jim Pattison, has assets of more than $30 billion. There is no good financial reason why these people had to loose their jobs. And there certainly isn't any reason why they shouldn't be given a fair severance package." The meeting to vote on the company's severance offer will be held at 4:15 p.m. at the Yellowhead Inn (Salon B). The Yellowhead Inn is located at 15030 Yellowhead Trail. The meeting will be open to the media. Audrey Cormack, president of the Alberta Federation of Labour, will also be in attendance.
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