Mill pensioners want to be kept in the loop

Gary Kean
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Retired workers at Corner Brook Pulp and Paper may have approved an extension for their former employer to cover its pension fund liabilities, but that doesn’t mean they don’t have concerns, a spokesman says.

Few of the retired mill workers voiced objection to a second vote, finalized last week. Nor did they object to the first vote in May — which was stymied when the mill’s current workers rejected Kruger Inc.’s request for a five-year extension to repay what the company owes to the pension fund.

After getting assurances in writing from the government and the company that future pensions won’t be affected by the funding relief measures, current workers also overwhelmingly endorsed the extension during the second vote.

Gerald Parsons, chairman of the Corner Brook Pulp and Paper Union Pensioners Committee, said retirees now want to know what the long-term plans are for the mill.

Provincial help possible

The government has said it would be willing to step in and help the company if it could come to agreements with its workers regarding pensions, collective agreements and a long-term viability plan. Kruger has said now the pension issue has been settled it will continue to assess the operation’s viability.

“They asked us to go from five-year to 10-year (pension plan) funding, so you would think they have at least a 10-year plan for sure.” Parsons said Tuesday. “We want to know what the long-term plan is. If they have a plan that’s only for two or three or five years, then we are in trouble.”

Parsons said he had been getting calls once or twice a week from the province while pensioners were considering the extension request. He said he has not heard from the government since the pensioners approved the request.

He said he called his MHA Finance Minister Tom Marshall (Humber East) last week but has yet to hear back. Marshall could not be reached for a comment Tuesday.

Parsons said his pension is dependent on the mill operating and he is concerned when he hears the infrastructure inside the plant is deteriorating and skilled tradespeople are leaving.

“When tradespeople are leaving, something has to happen,” he said. “If the equipment doesn’t shut her down, the want of maintenance is going to shut her down.”

The pensioners’ committee wants to be kept in the loop when the viability plan is dealt with by government and the mill’s current union officials, he said.

“When government is presented with this package, someone from our committee of retirees should be sitting down with government and the unions to see what’s going to be happening with their plan,” Parsons said.

Government help in the form of money must be invested in upgrading the paper mill’s infrastructure, Parsons said.

“I’m hearing all kinds of stuff that there’s no money going into the mill and it’s going to go to Deer Lake Power,” he said. “I hope that’s not right. I can understand some going to Deer Lake Power, but some has got to go into that mill.”

The Western Star

Organizations: Kruger Inc., Corner Brook Pulp and Paper Union Pensioners Committee

Geographic location: Corner Brook, Humber East, Western Star

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Recent comments

  • Derrick
    August 22, 2012 - 17:23

    As the mill borrows more money, the pension plan goes down the list of prefered creditors, same happened to Nortel. Ten year extension means no worry for pension plan till year eight, this may turn out to be a negative outcome. If they couldn't do in last 10 years why would they in next 10 years ?