Government Regulations Won't Impede Agreement Between Kruger and Unions

Today the Honourable Paul Davis, Minister of Service NL, stressed that there is nothing in Provincial Government regulations that would stand in the way of an agreement between Kruger and unions on what has been proposed related to pension commitments. Service NL is the department responsible for the regulation of pension plans in the province.

“This is a critical time in the life of the mill,” said Minister Davis. “And there seems to be some confusion around how provincial regulations might impact what's currently being proposed by Kruger to its workers. Today I want to inform the employees of Corner Brook Pulp and Paper and the public that our regulations will not impede this process and if they did, we would change the regulations.”

There has been some concern expressed by the unions that section 8 (1)(k) of the Solvency Funding Relief Regulations will prevent Kruger from honouring previous pension commitments. Section 8 (1)(k) references restrictions on the increase in pension benefits during the first five years of solvency funding relief.

“Our Solvency Funding Relief Regulations will not impede the implementation of a negotiated agreement,” said Minister Davis “We all have the same goal here – for the mill to survive and to continue to be viable for years to come.”

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Media contact:
Hugh Donnan
Director of Communications
Service NL
709-729-4860, 725-6511
hughdonnan@gov.nl.ca 

2012 06 06             4:50 p.m.