UPDATED January 4:
Catalyst, union agreement still up in the air
Crofton local the only holdout
Kyle Wells | [email protected]
Communications, Energy and Paperworkers’ Union local 76 in Powell River voted to accept an early collective agreement with Catalyst Paper Corporation, but ratification of the agreement rests with one holdout local.
Four of the five locals that had to accept the agreement voted in favour of it, while Crofton’s local rejected the agreement. All five, plus the Pulp, Paper and Woodworkers of Canada (PPWC) local 2 in Crofton, need to accept the agreement in order for it to pass. PPWC has yet to vote on the agreement.
Local 76 president Mike Verdiel said he still could not discuss the details of the agreement while it remains on the table. If the Crofton local once again rejects the agreement it will be off the table and negotiations will have to begin again.
The Crofton local will be re-voting on the agreement on Monday, January 9. Verdiel speculated they are having a re-vote because union officials feel a lack of information, and perhaps some misinformation, caused the first agreement to be rejected.
“So now they will have had more time to think about it, look at the deal in more detail and make a more informed decision,” said Verdiel, “but I can’t say how it’s going to go.”
The agreement is coming early at the request of Catalyst, which is in the midst of restructuring its finances as it struggles to pay off interest on debt or face default. Powell River voted on Wednesday, December 28.
Union votes on early agreement
Members of the Communications, Energy and Paperworkers’ Union in all locals with members employed by Catalyst Paper Corporation have voted on whether or not to accept a new collective agreement with the corporation.
Presidents of the locals, including Powell River’s Local 76, recommended acceptance of the agreement, which will start in 2012. The agreement is coming early at the request of Catalyst, which is in the midst of restructuring its finances as it struggles to pay off interest on debt or face default. Powell River voted on Wednesday, December 28. The results of the vote are not yet known.
Catalyst’s total debt was listed at $840 million in its third-quarter financial results. The company began the review of its capital structure in June 2011 and has been negotiating with 2014 and 2016 bondholders to deal with the existing debt structure.
Members of the union were given a presentation on the agreement and a chance to ask questions before they voted.
“We urge all of you to attend and be informed on what is one of the most important votes in our local’s recent history,” wrote Mike Verdiel, Local 76 president, in a letter to union members.
Operations are not at risk, according to Kevin Mason of Equity Research Associates, unless a mill is losing substantial amounts of money. The most likely operation to be shut down, if any shutdowns occur, is the recycled newspaper plant at Snowflake, Arizona.
Operations at all mills will continue as usual during the restructuring process.
