Nfld. & Labrador

Kruger destroys trust: Corner Brook mill unions

CBC News has learned that unions at the Kruger paper mill in Corner Brook are angry after finding changes in the company's pension proposal that could cost retired workers thousands of dollars.
Kruger mill in Corner Brook on May 11, 2012 (CBC)

CBC News has learned that unions at the Kruger paper mill in Corner Brook are angry after finding changes in the company's pension proposal that could cost retired workers thousands of dollars.

The unions say the company wants to change the formula that determines how pensions are paid. They're upset they learned about the changes on their own; they say the company never mentioned them in meetings with workers. That, they say, has destroyed trust between workers and the company.

Further complicating matters, the unions claim workers at another Kruger mill in Quebec are getting a better pension deal.

This comes just before workers vote on whether to allow Kruger a 10-year extension on the pension payback.

The unions fear a vote against the pension proposals will prompt the company to permanently shut down the operation.

For the first time in the history of the mill, all the unions involved will get together on Monday to discuss the pension proposals.

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