• Print
  • Send to a friend
  • Comment (5)
  •  

Between a rock and a hard place

Wood is being loaded to be processed at Corner Brook Pulp and Paper on Sunday, June 17, 2012. Geraldine Brophy

Wood is being loaded to be processed at Corner Brook Pulp and Paper on Sunday, June 17, 2012.

Published on June 18, 2012
Published on June 17, 2012
Meaghan Philpott  RSS Feed

Kruger using employees as scapegoats: public perception

Topics :
Kruger , Facing.Kruger , Canada , Quebec , Corner Brook

CORNER BROOK — The fate of Corner Brook Pulp and Paper is on the public’s mind, whether they work at the mill or not.

David and Pauline Barry had a few questions about the city’s once biggest employer as they ate lunch on the Majestic Lawn Sunday afternoon.

The couple, neither of whom are employed at the mill, said they are not the only ones wondering what will happen.

During a social weekend gathering, the mill’s uncertainty was a topic of discussion among friends, they said.

The Barrys said they do not envy the predicament mill workers are facing.

Kruger Inc., the mill’s owner, is asking its employees to sign a new collective agreement, including pensions changes, before the company decides on the mill’s viability. The company is now giving the unions until Friday to accept that proposal.

“The future of the mill is now in the hands of its employees,” said a Kruger statement released Saturday. ”The company must settle labour issues by the end of next week, so it can quickly resolve other pressing issues.”

Pauline is unsure why the company would need to access its viability, based on numbers presented by MP Gerry Byrne last Sunday.

Byrne presented figures to over 300 people attending a public meeting showing the mill is doing better than a lot of pulp mills in Canada, including those in Quebec, the home province of Kruger.

She said it seems Kruger is using its employees as scapegoats, holding them accountable whether the company decides to keep the mill running or close it down.

“If they don’t reach an agreement, they’ll blame the employees (for the mill shutting down),” she said.

The alternative is for workers to accept concessions on wages and other issues, but even then there is no guarantee the mill will even survive to pay out the benefits in the agreement.

Workers are between a rock and a hard place, said David, and he feels for the mill employees who have been living with so much uncertainty in recent months.

“Corner Brook can’t live under the threat of the mill,” said David. “The city has got to find a new direction.”

David, who works at Western Collision autobody shop, suspects if the mill closes, it will have an outward impact on the business community.

A lot of the vehicles he works on are paid for from mill salaries, he said.

Mark Patey of Humber Road, agrees. He said he does not foresee anything good coming from the uncertainty surrounding the mill.

Patey suspects within a few years Kruger will pull the plug on CBPP and the city will turn into a ghost town.

“It’s as good as gone,” he said. “Joe Kruger made his money here.”

Friday night, Kruger walked away from last-ditch negotiations after presenting its final offer to workers who have been without a collective agreement for three years.

Kruger previously requested the unions grant a five-year extension to repay the unfunded portion of their pension plan, which the unions rejected last month.

 

 

Comments

  • Username
    dogloc
    - June 18, 2012 at 22:24:26

    With Kruger making millions of $$ from the hydro,but wanting to close down the mill ,but keep the hydro.When the first mill owners built the mill,the mill & hydro plant were in one package with timber & water rights,therefore when the mill closes Kruger loses those rights,both timber & water,thus the hydro plant goes back to the province with all the properties.

    Submit a comment

  • Username
    squires
    - June 18, 2012 at 12:02:56

    let the mill go now, Stephenville and Grand Falls lost their mill, they did not become ghost towns, it time to move pass this, goodbye JOE and look ahead. Yas it will get blamed on the employees but it is their decision right now

    Submit a comment

  • Username
    David
    - June 18, 2012 at 09:57:25

    Ah, the wisdom of random, uninformed strangers. If only Kruger had access to such economic insights as are avaialable ---at no charge, BTW!---- throughout the business mecca of Corner Brook, they'd know exactly what to do. Powerful bit of journalism gathering some of it together.

    Submit a comment

  • Username
    Jeff
    - June 18, 2012 at 08:11:43

    All of the issues with The Unions and The Company aside, this should really, REALLY be a wake up call for those who sit in power at The City (Town) of Corner Brook. The isolationist policies regarding new business should be abolished and new business, new industry should be welcomed with open arms instead of being turned away with hat in hand. The City (Town) should be bending over backwards to allow new business to set up shop in the area and to grow, grow, grow. The writing is on the wall for CBP&P (as much as I hate to see it happen) unless things drastically change. To make matters worse, it's going to happen sooner then later unless true visionary leadership steps up from both The Union and The Company. This decades old "us versus them" mentality is not the answer and it's time both sides realized that. The City (Town) should take this situation as a cue to stop being petty and restrictive. Ease taxes, ease regulations, make things simple for new businesses wanting to start up so that when the steam does stop at CBP&P the drastic effect... won't be so drastic. Stop living in the past and start thinking about our future!

    Submit a comment

  • Username
    Derrick
    - June 18, 2012 at 07:32:40

    It's insane to grant 10 years to the pension plan, if they wait 9 years and close, the pension will be down in value. In addition all extra borrowing will further degrade the plan as it is not a prefered creditor, the new lenders are.

    Submit a comment

Submit a comment

Submit a comment (we keep all emails private)
Agreement

We ask that users remain courteous. You may not post insulting, discriminatory or inappropriate content, which may be removed at our discretion. We are not responsible for user content and opinions. Use of this site as well as content submission & ownership are governed by our Conditions of Use and Privacy Policy.

Member organizations should be non-profit in nature, and promote legal activities. Any organization found promoting illegal activities or commercial products or services will be deleted from the site.

I agree with these conditions.

Advertising

Business Directory


Milestones Moving Up

Newsletter

Please enter your email to receive our free newsletter

Subscribe to news alerts

Advertising