Kruger, Unions Encouraged to Work Together to
Secure Future of Corner Brook Pulp and Paper

The Provincial Government is encouraging Kruger Inc. and the unions at Corner Brook Pulp and Paper Ltd. to continue their efforts to work together to ensure that operations remain competitive and the mill is better positioned for the future.

“We have met with Kruger and the unions at Corner Brook Pulp and Paper to encourage both parties to work in partnership to secure long-term viability of the mill, and to clearly articulate that our government will examine all options to provide support if an agreement between the two parties is in place,” said the Honourable Jerome Kennedy, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency. “Government will continue to do its part to support the company and its employees, and to work with Kruger to identify ways to improve the long-term competitiveness and future viability of the mill.”

The Provincial Government does not have a role to play in relation to the discussion between Kruger and plan members and retirees with respect to pension funding relief. Under the regulations, all single-employer defined pension plans registered with the province can avail of such funding relief. It is the decision of plan members if they wish to grant consent to the employer, and all single-employer defined pension plans registered with the province may avail of this option of funding relief, not just Corner Brook Pulp and Paper.

“The issue related to pensions which has been discussed recently in the media is a matter for discussion between Corner Brook Pulp and Paper, and pension plan members and retirees,” said the Honourable Tom Marshall, Minister of Finance. “I want to stress that government has not given the company permission to reduce benefits. While the provincial regulations allow companies to change the period of time in which the solvency deficit is funded, it can only proceed with the agreement of plan members and retirees.”

Newfoundland and Labrador’s forest industry is a major contributor to the provincial economy. The forest sector is valued at $250 million and directly and indirectly employs over 5,000 men and women, particularly in the province’s rural communities in sawmilling, woods contracting and value-added enterprises. The Provincial Government has invested $89 million in Corner Brook Pulp and Paper since 2004. In Budget 2010, $30.6 million was allocated over two years to invest in additional forest management responsibilities and purchase timber rights from Corner Brook Pulp and Paper.

- 30 -

Media contacts:

2012 03 22                  6:15 p.m.