Kruger released a statement Friday afternoon that its workers and pensioners at Corner Brook Pulp and Paper have agreed to a company proposal to pay back tens of millions of dollars to its pension plan.
Workers overwhelmingly voted to give Kruger a 10-year extension to pay back the underfunded pension plan. Of the 321 current workers, only 19 voted against it. Only one per cent of pensioners rejected the deal.
The deal was initially rejected earlier this year. At the time, 54 per cent of active workers voted against it, but when the company openly talked about closing the mill, a second vote was held.
But the agreement on pensions doesn’t mean the company is out of the woods.
The company still has to get a new contract with its skilled trades unions. In June, they turned down an offer from Kruger that asked for concessions.
Kruger also has to submit a sustainability plan to government in the next few weeks if it hopes to get financial help from the province.
The government has offered financial help to support upgrades at the mill, but that hinges on getting an agreement in place with the two trades unions.