Executive members of CEP Local 233 Union supports Tembec's recapitalization plan

    TEMISCAMING, QC, Dec. 28 /CNW Telbec/ - Executive members of
Communications, Energy and Paperworkers Union of Canada (CEP) Local 233 today
announced their support for the Tembec recapitalization plan, announced
December 19, 2007. Local 233 represents the employees of the Temiscaming site,
the site where Tembec started its first operations back in 1973. At that time,
several employees took an active role in a successful campaign to keep the
mill alive, including financial participation in the ownership of the mill
through an employee trust. As the Company grew and became a true public
company, a great number of employees at this site became shareholders of the
Company through the conversion of the initial trust units into shares, as well
as through the Company's employee stock purchase plan.
    "We both recognize the need for and support the Company's
recapitalization plan. This is a challenging time for the industry overall and
for Tembec in particular. Employees have worked hard with management to
improve safety, costs, productivity and quality. Local 233 recognized that
this was a serious situation and early last year, our members made concessions
to help the Company fighting against the perfect storm", said Luc Rossignol,
president of Local 233.
    While the cooperation of Local 233 was key to the Temiscaming site, the
issue of the Company's high debt levels and the very high levels of annual
interest charges remained. "Management was clear with us, both as employees
and shareholders, that something had to be done about the debt levels and the
interest charges that came with this. We are happy to see that the Company has
followed up on its commitment to fix its financial situation", said
Mr. Rossignol. We hope that, when other stakeholders see that the Company and
the Union are aligned in their efforts to maintain operations and continue to
provide quality products to our customers, they will decide to support this
    Claude Carrière, an operating mechanic who started with the Company in
1973 and who holds several shares stated that he is ready to make some
compromise as a shareholder in return of the plan put forward by the Company.
"This will provide more stability for the Company going forward and more
security for our pension and benefit plans. This will also remove the
uncertainty for employees and customers that has existed over the last few
years", said Mr. Carrière. "It's a tough situation and something had to be
    "We experienced a similar situation in 1973 and we were able to save the
community with management and employees joining together in their efforts. The
economic outcome this had on our whole region since then is practically
impossible to be measured", concluded Mr. Rossignol.

For further information:

For further information: Luc Rossignol, President, Communications,
Energy and Paperworkers Union of Canada Local 233, (819) 627-4233

Organization Profile

Communications, Energy and Paperworkers Union of Canada

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890