Catalyst, CEP Reach Agreement Concerning Pulp and Paper Operations in Canada

The Communications, Energy, and Paperworkers Union of Canada (CEP) and Catalyst Paper Corp., Richmond, British Columbia, Canada, have reached a tentative agreement on the renewal of the collective agreements for their pulp and paper operations in Crofton, Campbell River and Powell River.

This new agreement, which will be offered for ratification by the union locals in the coming weeks, provides for the implementation of the CEP Industry Pattern Agreement as well as a commitment to complete plans, which will assist Catalyst Paper in reaching its stated goal of an $80 per ton labor cost structure, according to the press release. These initiatives are intended to help solidify the viability of these operations for the future, Catalyst says.

The new four-year agreement will also provide a stable labor relations environment through to 2012 as the two parties deal with today’s difficult market conditions, the release says.

“We are very pleased that the two parties have reached this tentative agreement,” says Jim Britton, CEP vice president, Western region. “With all the uncertainty of the current global economic crisis, it is very good news that we are close to finalizing an agreement with one of our largest employers in B.C.”

“Surviving this prolonged industry downturn depends on everyone pulling together across the business and this tentative agreement is an important step forward,” says Catalyst President and CEO Richard Garneau. “It enables us to focus on cost management and the adjustments needed to address current economic and market deterioration and provide for greater certainty of business success over the long-term.”

Catalyst is one of the largest producers of specialty printing papers and newsprint in Western North America and also produces market kraft pulp and owns Western Canada’s largest paper recycling facility.

The CEP represents 150,000 members from coast to coast, including 40,000 members in the pulp and paper industry.