Elk Falls mill workers aren’t that desperate to get back to work.

Last week, Catalyst Paper presented an offer to Communication, Energy and Paperworkers Union locals 1123 and 630 which the company claimed would allow at least two paper machines to be restarted. The entire Elk Falls mill has been shut down since February.

Union leaders were critical of the offer.

“What’s being asked for is a significant reduction,” said Terry Hoff, president of the 630 local which represents papermakers and members whose jobs are linked to the mill’s paper machines. “That’s unprecedented anywhere, in any industry…we’re trying to take things one day at a time, without overreacting.”

Hoff said the union would be discussing the offer over the next few weeks. And although they haven’t voted yet, members have spoken out strongly against the offer. Some suggested the proposed start-up would allow the company to get out of paying severance and said there’s no guarantee the mill would stay operating for long (see sidebar).

The company’s offer proposed a profit-sharing plan for employees, in exchange for reductions in wages and benefits. It’s the only way to make the mill competitive, said the company president.

“Our business is in the grip of a deep cyclical downturn, coupled with demand shifts and structural changes. We have to make adjustments to the cost structure of each of our mills to give them the greatest opportunity for a successful operation long-term,” said Richard Garneau, Catalyst Paper’s president and chief executive officer, in a news release. “We would rather work through the details of the issues facing the Elk Falls mill together with the union locals, but they declined that opportunity and asked the company for a plan. We recognize our plan proposes changes to the status quo at the mill but believe it reflects the need to adapt to the lower-cost demands of our new, smaller, highly competitive market.”

Ian Simpson, president of local 1123 which represents maintenance workers at the mill, published the details of Catalyst’s offer on the union local’s cep1123.wordpress.com blog. According to his post, two of the major components of Catalyst’s offer are:

n Wage rates frozen until April 30, 2014 at a 20 per cent reduction from the May 1, 2009 contract rates.

n Base labour rate reduced to $20.50 per hour.

The offer also includes reductions in premium pay, such as pay for overtime and stat holiday pay, and reductions in vacation time. It also includes reductions in company contributions to the employee pension plan and eliminates “bridging” programs allowing for early retirement.

Contracting out?

The offer implies the company may be looking at contracting out jobs not directly related to making paper.

“The management and employees of the mill are accountable for providing for the safe and cost-efficient operation and maintenance of the facilities and equipment necessary to support the manufacture and shipping of paper,” says Simpson’s post. “Activities not directly supportive of that objective such as waste management and recycling services, lawn, garden and brushing services, janitorial, street sweeping, mobile crane, sign-making, sheet metal, sandblasting, painting and others, as may be identified, will be reviewed to find the lowest total cost alternative.”

Not impressed

Comments posted on the cep1123.wordpress.com show members aren’t happy with the offer.

n “I can live with the pay cut, but holidays need to be paid out the same as they are now. There are a lot of senior people that have been put on spare board at base rate. Considering the average age of the employees, elimination of bridging is going to force many of us to have to work to 65, this will also reduce the chance of younger people getting a job.”

n “We already have a contract. Put up or shutup and payout. Period.”

n “We voted on a contract, all parties signed it. Lets talk in three years.”

n “When I watch and see how this company treats its own salary staff I shudder. I have often heard it said over the years here that ‘people are our greatest asset.’ We must be bankrupt if this treatment is any indication of our value! Heaven forbid that this economy turns around and the people that have been treated like an old pair of sneakers are once again ‘needed.’ Who will forget? Yes, difficult decisions have had to be made in this, the worst time for our industry, but when the value of the person is taken away from the equation what really do we have left?”

n “When senior management posts their wages and bonuses and shows they’re willing to take a 30 percent rollback and run the mill ‘til April 30, 2014 then I would seriously think about their offer until then we already have a contract.”