Catalyst Paper to trim 350 positions by year-end
Feb. 14, 2007 - Catalyst Paper today said that it will reduce its workforce by about 350 positions across the company. The cuts will be completed by the end of 2007
At a February Board meeting, Catalyst approved a $21.2 million restructuring program to enable the workforce reductions.
Both staff and union positions will be affected, the company said.
Catalyst's Board earmarked $12.9 million for the Powell River mill, allowing early retirement and severance packages for approximately 100 workers. The company said it has reached agreement with local unions at the mill providing for workplace flexibility, more effective vacation scheduling, elimination of unpaid leave and changes to apprenticeships.
Efficiency improvements attained by these changes are necessary to support future capital investments at the Powell River mill, Catalyst added.
"Reductions of this nature will cause some hardship for affected employees, their families and the community, but they are part of the reality of improving our company's ability to compete under very tough industry conditions," said Ron Buchhorn, senior vice-president, operations. "We recently met with our Powell River union locals to discuss the rationale and timeline for downsizing, and we will continue to meet with them in coming weeks as we move through the process."
SOURCE: Catalyst Paper