CORNER BROOK, NL, June 22, 2012 /CNW Telbec/ - Kruger Inc. is pleased that the Communications, Energy and Paperworkers Union (CEP) members at Corner Brook Pulp and Paper voted in favour of its collective agreement proposal, thereby enabling the Company to hold a second vote on the pension plan funding relief measures and to continue its assessment of the Mill's viability. The new collective agreement will be effective immediately.
CBPP's pension plan administrators will launch the process for active and retired members of the unionized employees' Pension Plan to re-vote on the application of funding relief measures, which are essential to the Mill's competitiveness and sustainability. The Company expects the voting process to be completed by August 22.
The following step will then be for the Company to finalize its assessment of the Mill's viability, taking into consideration the fact that the members of Lodge 1567 rejected the collective agreement proposal, which was modelled on the "pattern" agreement of CBPP's main competitor. In the meantime, the Company will continue its efforts to reduce the Mill's operating costs by applying necessary cost-cutting measures.
Founded in 1904, Kruger Inc. is a major producer of publication papers, tissue, lumber and other wood products, corrugated cartons from recycled fibres, green and renewable energy and wines and spirits. The Company is also a leader in paper and paperboard recycling in North America. Kruger operates facilities in Quebec, Ontario, British Columbia, Newfoundland and Labrador and the United States.
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